Accounting Qualification
Answers
Foundation level
Preparing ledger balances and an
initial trial balance (PLB)
December 2010
Section 1
Tasks 1.1 – 1.4
Subsidiary (sales) ledger
Glitz Ltd
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 6,329 / 30 Nov / Balance c/d / 14,554
30 Nov / Sales / 8,225
14,554 / 14,554
1 Dec / Balance b/d / 14,554
Hopley Stones
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 7,324 / 30 Nov / Balance c/d / 9,439
30 Nov / Sales / 2,115
9,439 / 9,439
1 Dec / Balance b/d / 9,439
LJT Ltd
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 11,970 / 30 Nov / Bank / 1,150
30 Nov / Sales / 3,760 / 30 Nov / Balance c/d / 14,580
15,730 / 15,730
1 Dec / Balance b/d / 14,580
Golden Gifts
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 3,912 / 30 Nov / Bank / 1,345
30 Nov / Sales / 12,549 / 30 Nov / Balance c/d / 15,116
16,461 / 16,461
1 Dec / Balance b/d / 15,116
Main ledger
Sales
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance c/d / 327,687 / 30 Nov / Balance b/f / 304,327
30 Nov / Sales ledger control / 22,680
30 Nov / Bank / 680
327,687 / 327,687
1 Dec / Balance b/d / 327,687
Purchases
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 89,392 / 30 Nov / Balance c/d / 89,632
30 Nov / Bank / 240
89,632 / 89,632
1 Dec / Balance b/d / 89,632
Sales ledger control
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 134,729 / 30 Nov / Bank / 1,150
30 Nov / Sales / 26,649 / 30 Nov / Bank / 1,345
30 Nov / Journal / 4,230
30 Nov / Balance c/d / 154,653
161,378 / 161,378
1 Dec / Balance b/d / 154,653
Purchases ledger control
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Journal / 4,230 / 30 Nov / Balance b/f / 25,432
30 Nov / Balance c/d / 21,202
25,432 / 25,432
1 Dec / Balance b/d / 21,202
Main ledger
Capital
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance c/d / 47,500 / 30 Nov / Balance b/f / 37,500
30 Nov / Bank / 10,000
47,500 / 47,500
1 Dec / Balance b/d / 47,500
Hotel expenses
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 765 / 30 Nov / Balance c/d / 915
30 Nov / Bank / 150
915 / 915
1 Dec / Balance b/d / 915
Bank charges
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Balance b/f / 363 / 30 Nov / Balance c/d / 450
30 Nov / Bank / 87
450 / 450
1 Dec / Balance b/d / 450
VAT
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £30 Nov / Purchases / 42 / 30 Nov / Balance b/f / 9,874
30 Nov / Balance c/d / 13,920 / 30 Nov / Sales / 3,969
30 Nov / Sales / 119
13,962 / 13,962
1 Dec / Balance b/d / 13,920
Tasks 1.5 and 1.6
Baxter Gems
Trial balance as at 30 November 2010
/Dr
£
/Cr
£
Motor vehicles
/ 33,680Fixtures and fittings
/ 8,225Stock
/ 23,335Bank
/ 29,899Petty cash control
/ 150Sales ledger control
/ 154,653Purchases ledger control
/ 21,202VAT
/ 13,920Capital
/ 47,500Sales
/ 327,687Sales returns
/ 1,230Purchases
/ 89,632Purchases returns
/ 481Discounts received
/ 917Bank interest received
/ 233Wages
/ 54,324Office expenses
/ 527Motor expenses
/ 845Rent and rates
/ 10,650Heat and light
/ 979Hotel expenses
/ 915Discounts allowed
/ 126Bank charges
/ 450Miscellaneous expenses
/ 2,320Total
/ 411,940 / 411,940
Section 2
Task 2.1
(a) £600 (£4,000 × 15%)
(b) £577.15 (£3,400 – 3% × 17.5%)
(c) £3977.15 (£3,400 + £577.15)
(d) Discounts allowed account
Task 2.2
Any three from:
Words and figures do not match
Incorrect date/post dated
Omissions (signature, date, etc.)
Payee incorrect
Amount paid does not match supporting documentation
Task 2.3
Any three from:
Keyboard
Mouse
VDU/screen/monitor
Printer
Back up device
Task 2.4
(a) Non-trade debtors control account
(b) Credit
(c) The balance on the petty cash control account will be MORE than the amount in the petty cash box
Task 2.5
(a) Delivery note
(b) Remittance advice note
(c) Goods returned note
Task 2.6
Account name / Debit £ / Credit £Bad debts / 4,280
VAT / 749
Sales ledger control / 5,029
Task 2.7
Any two from:
Wrong figure transferred to trial balance
Figure included in the wrong column of the trial balance
Calculation error
Task 2.8
Journals which reverse the incorrect entry, and post the correct entry, are equally acceptable.
Account names / Dr£ / Cr
£
(a) Office expenses / 25
Miscellaneous expenses / 25
(b) Purchases ledger control / 550
Sales ledger control / 550
(c) Heat and light / 980
Discounts allowed / 104
Suspense / 876
Task 2.9
(a) Purchases ledger control
Date 2010 / Details / Amount £ / Date 2010 / Details / Amount £31 Oct / Bank / 10,650 / 01 Oct / Balance b/f / 21,395
31 Oct / Purchases returns / 866 / 31 Oct / Purchases / 15,628
31 Oct / Journal / 6,675
31 Oct / Discounts received / 125
31 Oct / Balance c/d / 18,707
37,023 / 37,023
1 Nov / Balance b/d / 18,707
(b) £866 (£18,707 – £17,841)
(c)
a
Goods returned have been omitted from the subsidiary (purchases) ledger.Goods returned have been included in the subsidiary (purchases) ledger twice. / a
Discounts given to customers have been omitted from the subsidiary (purchases) ledger.
Discounts given to customers have been included in the subsidiary (purchases) ledger twice.
Goods bought on credit have been overstated in the subsidiary (purchases) ledger.
Payments made to credit suppliers have been overstated in the subsidiary (purchases) ledger. / a
Task 2.10
Cash book
Date 2010 / Details / Bank £ / Date 2010 / Cheque no. / Details / Bank £01 Nov / Balance b/f / 12,304 / 01 Nov / 130003 / Glitter Garb / 1,200
19 Nov / Norton & Norton / 499 / 17 Nov / 130004 / Little Gems / 1,377
22 Nov / Silver Savers / 2,350 / 19 Nov / 130005 / PPS Ltd / 358
25 Nov / Grand Occasions / 3,950 / 19 Nov / 130006 / SEP Ltd / 205
07 Nov / BEW Ltd / 7,236 / 23 Nov / WMBC / 1,804
22 Nov / Pritchard Ltd / 3,000 / 24 Nov / Logan Rentals / 1,000
26 Nov / Bank charges / 26
26 Nov / Balance c/d / 23,369
29,339 / 29,339
27 Nov / Balance b/d / 23,369
Bank reconciliation statement as at 26 November 2010
Balance per bank statement / £17,947
Add:
Name: Norton & Norton / £499
Name: Silver Savers / £2,350
Name: Grand Occasions / £3,950
Total to add / £6,799
Less:
Name: Little Gems or 130004 / £1,377
Total to subtract / £1,377
Balance as per cash book / £23,369
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