Accounting equation & Trial balance questions

By David Kotut

Review questions-Double Entry & Accounting equations

Account
2.1 Complete the following table: (7mks) Account to to
be
be debited credited
(a) Bought office machinery on credit from D Isaacs Ltd.
(b) The proprietor paid a creditor, C Jones, from his
Private funds.
(c) A debtor, N Fox, paid us in cash.
(d) Repaid part of loan from P Exeter by cheque.
(e) Returned some of office machinery to D Isaacs Ltd.
(f ) A debtor, N Lyn, pays us by cheque.

(g) Bought van by cash.

Account
2.2 Complete the following table:(10mks) to Account to
be
be debited credited
(a) Bought lorry for cash.
(b) Paid creditor, T Lake, by cheque.
(c) Repaid P Logan’s loan by cash.
(d) Sold lorry for cash.
(e) Bought office machinery on credit from Ultra Ltd.
(f ) A debtor, A Hill, pays us by cash.
(g) A debtor, J Cross, pays us by cheque.
Proprietor puts a further amount into the business by
cheque.
(i) A loan of £200 in cash is received from L Lowe.

( j) Paid a creditor, D Lord, by cash.

2.3
Write up the asset and liability and capital accounts to record the following
transactions in the records of F Murray.

20X7
July
1 Started business with £15,000 in the bank.
2 Bought office furniture by cheque £1,200.
3 Bought machinery £1,400 on credit from Trees Ltd.
5 Bought a van paying by cheque £6,010
8 Sold some of the office furniture not suitable for the business for £150 on credit to
D Twig & Sons.
15 Paid the amount owing to Trees Ltd £1,400 by cheque.
23 Received the amount due from D Twig & Sons £150 in cash.
31 Bought more machinery by cheque £650.

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 Accounting equation & Trial balance questions
By David Kotut

2.4
You are required to open the asset and liability and capital accounts and record the following
transactions for June 20X8 in the records of P Bernard.

20X8
June
1 Started business with £12,000 in cash.
2 Paid £11,700 of the opening cash into a bank account for the business.
5 Bought office furniture on credit from Dream Ltd for £1,900.
8 Bought a van paying by cheque £5,250.
12 Bought equipment from Pearce & Sons on credit £2,300.
18 Returned faulty office furniture costing £120 to Dream Ltd.
25 Sold some of the equipment for £200 cash.
26 Paid amount owing to Dream Ltd £1,780 by cheque.
28 Took £130 out of the bank and added to cash.
30 F Brown lent us £4,000 – giving us the money by cheque.

2.5
Write up the asset, capital and liability accounts in the books of D Gough to record the following
transactions:

20X9
June
1 Started business with £16,000 in the bank.
2 Bought van paying by cheque £6,400.
5 Bought office fixtures £900 on credit from Old Ltd.
8 Bought van on credit from Carton Cars Ltd £7,100.
12 Took £180 out of the bank and put it into the cash till.
15 Bought office fixtures paying by cash £120.
19 Paid Carton Cars Ltd a cheque for £7,100.
21 A loan of £500 cash is received from B Berry.
25 Paid £400 of the cash in hand into the bank account.
30 Bought more office fixtures paying by cheque £480.

2.6

Write up the accounts to record the following transactions:

20X7
March
1 Started business with £750 cash and £9,000 in the bank.
2 Received a loan of £2,000 from B Blame by cheque.
3 Bought a computer for cash £600.
5 Bought display equipment on credit from Clear count Ltd £420.
8 Took £200 out of the bank and put it in the cash till.
15 Repaid part of Blame’s loan by cheque £500.
17 Paid amount owing to Clear count Ltd £420 by cheque.
24 Repaid part of Blame’s loan by cash £250.
31 Bought a printer on credit from F Jones for £200.

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 Accounting equation & Trial balance questions
By David Kotut
2.7 You are to enter up the necessary accounts for the month of May from the following
information relating to a small printing firm. Then balance off the accounts and extract a trial
balance as at 31 May 20X6.
20X6
May 1 Started in business with capital in cash of £800 and £2,200 in the bank.
2 Bought goods on credit from the following persons: J Ward £610; P Green £214; M
Taylor £174; S Gem mill £345; P Tone £542.
4 Sold goods on credit to: J Sharpe £340; G Boycott £720; F Titus £1,152.
6 Paid rent by cash £180.
9 J Sharpe paid us his account by cheque £340.
10 F Titus paid us £1,000 by cheque.
12 We paid the following by cheque: M Taylor £174; J Ward £610.
15 Paid carriage by cash £38.
18 Bought goods on credit from P Green £291; S Gem mill £940.
21 Sold goods on credit to G Boycott £810.
31 Paid rent by cheque £230.
2.8 Enter the following transactions of an antiques shop in the accounts and extract a trial
balance as at 31 March 20X6.
20X6
March 1 started in business with £8,000 in the bank.
2 Bought goods on credit from the following persons: L Frank £550; G Byers £290; P
Lee £610.
5 Cash sales £510.
6 Paid wages in cash £110.
7 Sold goods on credit to: J Snow £295; K Park £360; B Tyler £640.
9 Bought goods for cash £120.
10 Bought goods on credit from: G Byers £410; P Lee £1,240.
12 Paid wages in cash £110.
13 Sold goods on credit to: K Park £610; B Tyler £205.
15 Bought shop fixtures on credit from Stop Ltd £740.
17 Paid G Byers by cheque £700.
18 We returned goods to P Lee £83.
21 Paid Stop Ltd a cheque for £740.
24 B Tyler paid us his account by cheque £845.
27 We returned goods to L Frank £18.
30 G Prince lent us £1,000 by cash.
31 Bought a van paying by cheque £6,250.
2.9 Record the following details relating to a carpet retailer for the month of November 20X7
and extract a trial balance as at 30 November 20X7:
20X7
Nov 1 started in business with £15,000 in the bank.
3 Bought goods on credit from: J Small £290; F Brown £1,200; T Rae £610; R
Charles £530.

5 Cash sales £610.

6 Paid rent by cheque £175.
7 Paid business rates by cheque £130.
11 Sold goods on credit to: T Potts £85; J Field £48; T Gray £1,640.
17 Paid wages by cash £290.
18 We returned goods to: J Small £18; R Charles £27.

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 Accounting equation & Trial balance questions
By David Kotut

19 Bought goods on credit from: R Charles £110; T Rae £320; F Jack £165.
20 Goods were returned to us by: J Field £6; T Potts £14.
21 Bought van on credit from Turnkey Motors £4,950.
23 We paid the following by cheque: J Small £272; F Brown £1,200; T Rae £500.
25 Bought another van, paying by cheque immediately £6,200.
26 Received a loan of £750 cash from B. Benet.
28 Received cheques from: T Potts £71; J Field £42.
30 Proprietor brings a further £900 into the business, by a payment into the
business bank account.
3.1 Record the following transactions for the month of January of a small finishing
retailer, balance off all the accounts, and then extract a trial balance as at 31
January 20X8:
20X8
Jan 1 Started in business with £10,500 cash.
2 Put £9,000 of the cash into a bank account.
3 Bought goods for cash £550.
4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.
5 Bought stationery on credit from Buttons Ltd £89.
6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.
8 Paid rent by cheque £220.
10 Bought fixtures on credit from Chiefs Ltd £610.
11 Paid salaries in cash £790.
14 Returned goods to: F Hood £30; M Smith £42.
15 Bought van by cheque £6,500.
16 Received loan from B Barclay by cheque £2,000.
18 Goods returned to us by: R Tong £5; M Singh £20.
21 Cash sales £145.
24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat £158.
26 We paid the following by cheque: F Hood £900; M Smith £118.
29 Received cheques from: R Pleat £158; L Fish £370.
30 Received a further loan from B Barclay by cash £500.
30 Received £614 cash from A Tom.