Accounting Mid Term Worksheet-2

Name…………………………… Date……………………………
Class……………………………. Worksheet -2
1. Neel started a business on 1 June. The following transactions took place in June.
1 Opened a business bank account with $8000 of his own money.
2 Received a bank loan, $2000.
3 Bought a delivery van, $5200, from A1 Motors on credit.
4 Bought inventory, $3700, paying by cheque.
5 Paid shop rent, $1000, by standing order.
6 Withdrew cash, $100, to start up an imprest system.
REQUIRED
(a) Complete the following table showing how these transactions were recorded. The first has been
completed as an example.
(b) Calculate the balance on Neel’s bank account after these transactions.
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
2. State the purpose of each of the following business documents.

debit note
_______________________________________________________________________________________
______________________ _________________________________________________________________
credit note
_______________________________________________________________________________________
____ ___________________________________________________________________________________
statement of account
_______________________________________________________________________________________________
____________________________________ ___________________________________________________________
_______________________________________________________________________________________________
1
3. The following incomplete statement of account was available on 31 August 2015.
REQUIRED
(a) (i) Calculate the balance due on 31 August.
____________________________________________________________________________________
____________________________________________________________________________________
(ii) State the name of the trader who owes the balance at 31 August.
____________________________________________________________________________________
____________________________________________________________________________________
(b) Prepare the account of Shahid Ayub as it would appear in the ledger of Mariam Soliman. Balance the
account and bring down the balance on 1 September 2015.
4. Andy sells furniture on credit. Fred is a credit customer.

REQUIRED
(a) Complete the following invoice.
2
(b) State which value from the invoice is recorded in Fred’s account.
_______________________________________________________________________________________
_____________ __________________________________________________________________________
(c) Name the document Andy issues if Fred returns any chairs.
_______________________________________________________________________________________
_____________ __________________________________________________________________________
(d) State the difference between Andy’s business and a service business.
_______________________________________________________________________________________
_____________ __________________________________________________________________________
5. John is a trader. On 1 February his bank account had a debit balance of $450. The following transactions
then took place.
February 1 Bought goods, $600, on credit from Abdul.
2 Made cash sales of goods, $150, cost $90.
3 Paid cash, $100, into the bank.
4 Took drawings, $50, in cash.
5 Sold goods, cost $300, on credit to Sara for $510.
6 Paid Abdul in full by cheque.
(a) Prepare John’s cash book (bank columns only) for the first week of February. Balance the cash book and
bring down the balance on 8 February.
John
Cash Book( bank Columns)
Date Details Folio $ Date Details Folio $
3
(b) Identify the transaction which reduced John’s capital.
_______________________________________________________________________________________
__________________ _____________________________________________________________________
6. Elliott started a business selling machinery on 1 May 2015. He opened a business bank account
with $12 000 of his own money and transferred his own vehicle to be retained and used in the
business at a valuation of $1800.
He provided the following summary of the transactions in the first month of trading.
Paid $3000 by standing order for three months’ rent.
Bought 6 machines at $300 each and 8 machines at $400 each, paying by credit transfer.
Sold 5 of the cheaper machines for $450 each in cash.
Sold 6 of the more expensive machines for $700 each receiving the funds by cheque.
Withdrew $3600 from the bank as drawings.
Paid sundry expenses, $150, in cash. Paid cash, $2000, into the bank.
Used, but did not pay for, electricity, $80.
REQUIRED
(a) Prepare Elliott’s cash book for May 2015. Balance the cash book and bring down the balances
on 1 June 2015.
4
7. Paul Chew is a trader. He made the following entries in his cash book in September 2015.
REQUIRED
(a) (i) Suggest one reason why the cheque on 4 September was dishonoured.
_______________________________________________________________________________
_______________________________________________________________________________
(ii) Explain the entry on 11 September.

_______________________________________________________________________________
_______________________________________________________________________________
(iii) Explain the entry on 27 September.

_______________________________________________________________________________
___________ ____________________________________________________________________
(iv) Calculate the percentage of the discount on 24 September.

_______________________________________________________________________________
_______________________________________________________________________________
(v) State how the total of the discount column on the debit side of the cash book would be
entered in the ledger on 30 September.
_______________________________________________________________________________
_______________________________________________________________________________
(vi) Calculate the bank balance on 30 September.

_______________________________________________________________________________
_______________________________________________________________________________
8. Amira owns an advertising agency. Her financial year ends on 30 April.

On 1 April 2018 she decided to use a petty cash book with a monthly imprest of $80 which
would be restored on the first day of each month.
On 1 April 2018 Amira put $80 cash in the petty cash box.
Her transactions for the month of April 2018 were as follows.
$
April 4 Bought stamps 3
7 Purchased printing paper 8
11 Purchased ink cartridges 12
19 Paid window cleaner 10
22 Paid KK Limited, a trade payable 35
29 Purchased flowers for reception desk 7
5
REQUIRED
Enter these transactions in Amira’s petty cash book.
Balance the petty cash book and bring down the balance on 1 May 2018.

Accounting Mid Term Worksheet-2

Uploaded by

Copyright:

Available Formats

Accounting Mid Term Worksheet-2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounting Mid Term Worksheet-2

Uploaded by

Copyright:

Available Formats

Name…………………………… Date……………………………

2. State the purpose of each of the following business documents.

4. Andy sells furniture on credit. Fred is a credit customer.

Date Details Folio $ Date Details Folio $

(ii) Explain the entry on 11 September.

(iii) Explain the entry on 27 September.

(iv) Calculate the percentage of the discount on 24 September.

(vi) Calculate the bank balance on 30 September.

8. Amira owns an advertising agency. Her financial year ends on 30 April.

You might also like