By Margaret Nicholson (auth.)
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Extra resources for Accounting Skills
9 Goods returned to the firm by J. Kendall (£23). 10 Bought motor vehicle (£950) on credit from Lockwood Motors. 11 Sold some surplus machinery (£125) on credit to B. Freeman. 12 Proprietor took £50 cash for personal use. 13 Credit purchases D. Trent (£367); E. Daley (£522); B. Todd (£168). 14 Paid motor expenses in cash (£48). 15 Received rent from sub-tenant (£25) by cheque. 16 Cash sales (£155). 17 Returned goods to D. Trent (£47); B. Todd (£18). 18 Paid wages in cash (£75). 19 Cash purchases (£76).
29 Received £310 in cash from J. Kendall. 30 Paid Lockwood Motors £950 by cheque. 45 7 The Trial Balance OBJECTIVES To enable students to understand the function and purpose of a trial balance, and to recognise that the trial balance is only a proof of the arithmetical accuracy of the books. The principle of the double entry system states that every debit entry should have a corresponding credit entry. Two separate accounts are involved in every transaction, one account recording the debit entry, the other account recording the credit entry.
30 Paid L. Gregg £426 and N. Banks £230 by cheque. 7 Enter the following transactions in the double entry accounts; write up all the accounts. Balance the accounts at the end of the month and bring the balances down. May 1 Started business with £2,500 in a business bank account. 3 Bought goods on credit from M. Seal (£240); J. Green (£195); S. Sutcliffe (£280). 5 Sold goods on credit to E. Phillips (£125); W. Lodge (£178). 6 Withdrew £500 cash from the bank. 7 Returned goods to J. Green (£35); S.
Accounting Skills by Margaret Nicholson (auth.)