Exam style Q

Apr 1 Balance b/f 80 000

Apr 1 Balance b/f 2000

Apr 1 Balance b/f 30 000

This is a credit because the goods

to the value of 2000 have left the

business

Apr 1 Balance b/f 5000

Apr 1 Balance b/f 3000

Apr 1 Balance b/f 2000

Apr 1 Balance b/f 10 000

You have put 3000 in to the rent a/c

You have bought stationary to the value of 2000.

You owe this money to the bank. It is leaving your business.

Apr 1 Balance b/f 4000

Apr 1 Balance b/f 8000

Apr 1 Balance b/f 6000

Apr 1 Balance b/f 12000

These balances on the credit side, because you owe the money to them. Money is leaving the business

Apr 1 Balance b/f 80 000

Apr 30 creditors 124 000

You have bought goods from these people, so goods have come in to your business.

You could write all 5 creditors, or just write a summary for all creditors at the end of the money

Apr 1 Balance b/f 2000

Here, you have returned goods. Goods have left your business, so it is a credit.

Apr 30 Creditors 250

Apr 1 Balance b/f 30 000Apr 30 purchase retur 275

Apr 5 Bank (cash book) 4000 Apr 30 purchases 13640

We pay Allen & Co 4000This will also be shown in the Allen & Co T a/c

Try this one by your self…

Think. VAT collected by the business on the sale of goods is shown on the credit side because it is a liability (money owed to the government).

VAT paid by the business for purchases is shown on the debit side because in the end the VAT is paid by the consumer, not the business. So it is money owing to you.

Apr 30 Creditors 1240

Apr 10 Bank (cash book) 15

Apr 30 Balance c/d 3990

Apr 1 Balance b/f 5000

Apr 30 Creditors 25

Apr 30 Bank (Cash book) 220

5245

May 1 balance b/d 3990

Apr 1 Balance b/f 3000

Apr 2 Bank (cash book) 3000

Apr 1 Balance b/f 2000

Apr 10 Bank (cash book) 150

Apr 1 Balance b/f 10000Apr 22 Bank (cash book) 250

Apr 1 Balance b/f 4000

Apr 1 Balance b/f 8000

Apr 10 Purchase return 220

Apr 5 Bank (cash book) 4000 Apr 10 Purchase s 1100

Apr 23 Purchase s 2200

Apr 17 Purchase s 3300

Apr 1 Balance b/f 6000

Apr 12 Purchases 440

Apr 12 Purchases returns 55

Apr 1 Balance b/f 12000

Apr 28 Purchases 6600