Chapter 3 The General Ledger Proformas for exercises

Simmons, Hardy

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Simmons, Hardy

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Exercise 3.1
a

Analysing Chart
Date

Recording in the General Ledger

Accounts affected

Classification
(A/L/Oe/R/E)

Increase/
Decrease

Debit
$

Credit
$

General Ledger
Bank (A)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Capital (Oe)
Date

Simmons, Hardy

Cross-reference

Amount
$

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Prepaid Rent Expense (A)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Stock Control (A)

Date

Cross-reference

Amount
$

Date

Creditors Control (L)

Date

Cross-reference

Amount
$

Date

Office furniture (A)

Date

Cross-reference

Amount
$

Date

Advertising (E)
Date

Cross-reference

Amount
$

Date

Computer (A)
Date

Cross-reference

Amount
$

Date

c
Accounting principle
Explanation

Simmons, Hardy

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Exercise 3.2
a

Analysing Chart
Date

Recording in the General Ledger

Accounts affected

Classification
(A/L/Oe/R/E)

Increase/
Decrease

Debit

Credit

General Ledger
Bank (A)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Capital (Oe)
Date

Simmons, Hardy

Cross-reference

Amount
$

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Premises (A)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Mortgage (L)
Date

Cross-reference

Amount
$

Date

Stock Control (A)

Date

Cross-reference

Date

Cross-reference

Amount
$

Date

Creditors Control (L)

Amount
$

Date

Wages (E)
Date

Cross-reference

Amount
$

Date

Drawings (Oe)
Date

Cross-reference

Amount
$

Date

Prepaid Advertising (A)

Date

Cross-reference

Amount
$

Date

c
Explanation

Simmons, Hardy

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Exercise 3.3

Cash sales in the General Ledger

a
Explanation

Analysing Chart
Date

Simmons, Hardy

Accounts affected

Classification
(A/L/Oe/R/E)

Increase/
Decrease

Debit
$

Credit
$

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

General Ledger
Bank (A)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Vehicle (A)
Date

Cross-reference

Amount
$

Date

Capital (Oe)
Date

Cross-reference

Amount
$

Date

Prepaid Rent Expense (A)

Date

Cross-reference

Amount
$

Date

Stock Control (A)

Date

Cross-reference

Amount
$

Date

Creditors Control (L)

Date

Simmons, Hardy

Cross-reference

Amount
$

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Sales (R)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cost of Sales (E)

Date

Cross-reference

Amount
$

Date

Wages (E)
Date

Cross-reference

Amount
$

Date

d
Amount
$

Increase/Decrease/No effect

Assets
Liabilities
Owners
Equity
e
Calculation

Gross Profit $

Simmons, Hardy

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Exercise 3.4
a

Cash and credit sales in the General Ledger

Analysing Chart
Date

Simmons, Hardy

Accounts affected

Classification
(A/L/Oe/R/E)

10

Increase/
Decrease

Debit
$

Credit
$

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

General Ledger
Bank (A)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Stock Control (A)

Date

Cross-reference

Amount
$

Date

Capital (Oe)
Date

Cross-reference

Amount
$

Date

Premises (A)
Date

Cross-reference

Amount
$

Date

Mortgage QV Bank (L)

Date

Simmons, Hardy

Cross-reference

Amount
$

11

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Sales (R)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cost of Sales (E)

Date

Cross-reference

Amount
$

Date

Shelving (A)
Date

Cross-reference

Amount
$

Date

Creditors Control (L)

Date

Cross-reference

Amount
$

Date

Debtors Control (A)

Date

Cross-reference

Amount
$

Date

Wages (E)
Date

Simmons, Hardy

Cross-reference

Amount
$

12

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Drawings (Oe)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

MONARO MOTORS

Trial Balance as at 9 August 2015

Account

Total

Debit
$

Credit
$

$183 900

$183 900

d
Error

e
Explanation

Simmons, Hardy

13

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

f
Overstated/Understated/No effect

Amount
$

Assets
Liabilities
Owners
Equity

Exercise 3.5

Opening balances in the General Ledger

a/b General Ledger

Bank (A)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Stock Control (A)

Date

Simmons, Hardy

Cross-reference

Amount
$

14

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Debtors Control (A)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Shelving (A)
Date

Cross-reference

Amount
$

Date

Capital (Oe)
Date

Cross-reference

Amount
$

Date

Computer (A)
Date

Cross-reference

Amount
$

Date

Sales (R)
Date

Simmons, Hardy

Cross-reference

Amount
$

15

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Cost of Sales (E)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Wages (E)
Date

Cross-reference

Amount
$

Date

Creditors Control (L)

Date

Cross-reference

Amount
$

Date

Repairs (E)
Date

Cross-reference

Amount
$

Date

c
Accounting principle
Explanation

d
Purpose

Simmons, Hardy

16

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

HOT DOGGIES

Trial Balance as at 12 June 2015

Account

Debit
$

Total

Exercise 3.6

$37 470

Credit
$

$37 470

Opening balances in the General Ledger

a/b General Ledger

Bank (A)
Date

Simmons, Hardy

Cross-reference

Amount
$

17

Date

Cross-reference

Amount
$

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Stock Control (A)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Debtors Control (A)

Date

Cross-reference

Amount
$

Date

Shop Fittings (A)

Date

Cross-reference

Amount
$

Date

Premises (A)
Date

Cross-reference

Amount
$

Date

Loan Highland Bank (L)

Date

Simmons, Hardy

Cross-reference

Amount
$

18

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Creditors Control (L)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Capital (Oe)
Date

Cross-reference

Amount
$

Date

Sales (R)
Date

Cross-reference

Amount
$

Date

Cost of Sales (E)

Date

Cross-reference

Amount
$

Date

Loan Punkah CC (L)

Date

Simmons, Hardy

Cross-reference

Amount
$

19

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Advertising (E)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Wages (E)
Date

Cross-reference

Amount
$

Date

c
Explanation

BRIGHT CAMPING

Trial Balance as at 10 October 2015

Account

Total

Simmons, Hardy

20

Debit
$

Credit
$

$245 130

$245 130

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

e
Error 1
Error 2

Exercise 3.7

Identifying transactions

a
Date

Transaction

Dec. 1
2
3
4
5
6
7
8
b
Calculation

Mark-up

Simmons, Hardy

21

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

PERFECT PHOTOGRAPHS

Trial Balance as at 8 December 2015

Account

Debit
$

Total

$14 000

Credit
$

$14 000

d
Statement
and
justification
e
Amount
$

Overstated/Understated/No effect

Assets
Liabilities
Owners
Equity
f
Account

Simmons, Hardy

Debit
$

22

Credit
$

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Exercise 3.8

Transactions to reports

a
Calculation

Owners Equity $
b/c General Ledger
Bank (A)
Date

Simmons, Hardy

Cross-reference

Amount
$

23

Date

Cross-reference

Amount
$

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Stock Control (A)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Debtors Control (A)

Date

Cross-reference

Amount
$

Date

Office Equipment (A)

Date

Cross-reference

Amount
$

Date

Premises (A)
Date

Simmons, Hardy

Cross-reference

Amount
$

24

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Creditors Control (L)

Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Mortgage JH Finance (L)

Date

Cross-reference

Amount
$

Date

Capital (Oe)
Date

Cross-reference

Amount
$

Date

Sales (R)
Date

Cross-reference

Amount
$

Date

Cost of Sales (E)

Date

Simmons, Hardy

Cross-reference

Amount
$

25

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

Electricity (E)
Date

Cross-reference

Amount
$

Date

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Cross-reference

Amount
$

Wages (E)
Date

Cross-reference

Amount
$

Date

Interest Expense (E)

Date

Cross-reference

Amount
$

Date

Drawings (Oe)
Date

Cross-reference

Amount
$

Date

Prepaid advertising (A)

Date

Simmons, Hardy

Cross-reference

Amount
$

26

Date

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

TURNING POINTS

Trial Balance as at 31 July 2015

Account

Total

Debit
$

Credit
$

$272 380

$272 380

e
Overstated/Understated/No effect

Amount
$

Assets
Liabilities
Owners
Equity

Simmons, Hardy

27

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

f
Accounting principle
Explanation

TURNING POINTS

Income Statement for July 2015

$

Revenue
less Cost of Goods Sold
Gross Profit

6 890

less Other Expenses

Net Profit

Simmons, Hardy

28

5 240

Cambridge University Press 2012

Chapter 3 The General Ledger Proformas for exercises

TURNING POINTS

Balance Sheet as at 31 July 2015

Current Assets

Current Liabilities

Non-Current Liabilities
Non-Current Assets
Owners Equity
+
Total Assets

263 240 Total Equities

263 240

i
Qualitative
characteristic
Explanation

Simmons, Hardy

29

Cambridge University Press 2012