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By Margaret Nicholson (auth.)

ISBN-10: 0333491564

ISBN-13: 9780333491560

ISBN-10: 1349108537

ISBN-13: 9781349108534

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Extra resources for Accounting Skills

Example text

Nixon (£210). 10 Paid insurance in cash (£78). 11 Bought office furniture (£196), paying by cheque. 12 Paid wages (£150) in cash. 14 Returned goods to R. Draper (£40); S. Sykes (£10). 16 Cash sales (£130). 17 Credit purchases: S. Sykes (£126); M. Morgan (£260). 18 Goods returned to us by V. McKay (£25); S. Draper (£40). 19 Received a cheque (£12); a refund of insurance overpaid. 20 Sold goods on credit to J. Nixon (£150); B. Hedges (£115); J. Peters (£90). 22 V. McKay paid £170 in cash. 24 Paid M.

Balance off all the accounts and extract a trial balance as at 31 July 19-8. Jul 1 Started business with £5,500 in cash. 2 Bought goods for cash (£200). 3 Put £5,000 of the cash into a business bank account. 4 Bought goods on credit from M. Morgan (£300); R. Draper (£480); S. Sykes (£186); D. Hammond (£340). 5 Bought motor van (£1,500) on credit from Silver Garages. 6 Paid Rent by cheque (£65). 8 Sold goods on credit to B. Hedges (£180); V. McKay (£195); S. Draper (£150); J. Nixon (£210). 10 Paid insurance in cash (£78).

Mann. 25 Received a cheque (£65) from E. Yates. 27 Paid instalment to Greens Garages (£200) by cheque. 28 Sold goods on credit to James Seymore (£175). 29 Paid money owing to T. Mann by cheque. 30 Cash purchases (£320). 31 T. Williams paid the amount owing (£129) in cash. 29 5 The Double Entry System for Expenses OBJECTIVES To enable students to understand and practise the double entry system for the expenses incurred in the day to day running of a business, with an examination of the proprietor's drawings account and the revenue receivable accounts.

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Accounting Skills by Margaret Nicholson (auth.)


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