INTRODUCTION TO FINANCIAL ACCOUNTING (ACC2001)
TUTORIAL SHEET
UNIT 1(a) – CONTROL ACCOUNTS
Tutorial class
1. The following data was obtained from the books of The Green Lantern for the year 2013:
January 1
Bal b/d
Debtors
Creditors
Totals for the year
Cash sales
Cash purchases
Sales returns
Purchases returns
Discount allowed
Discounts received
Bad debts
Refund to credit customers
Refund from credit suppliers
Payments to creditors
Receipts from debtors
Dishonoured cheques
Dec 31
Bal c/d
Debtors
Creditors
Dr 45,000
Dr 3,900
Cr 1,200
Cr 25,000
70,000
40,000
5,000
2,500
700
1,200
2,700
1,100
3,000
39,000
65,000
7,000
Dr 100
Dr 77,300
Cr 98,600
Cr 900
Write up the SLCA and the PLCA, clearly showing the amounts for credit sales and
credit purchases for the year.
2. The Kingston Merchandise Company has supplied the following data for 2012:
Jan 1 Purchases ledger balance
Sales ledger balance
11,874
19,744
Totals for the year:
Purchases journal
Sales journal
Return outwards journal
Return inwards journal
Cheques to suppliers
Cash paid to suppliers
154,562
199,662
2,648
4,556
146,100
78
1
Cheques received from customers
Discount allowed
Discount received
Bad debts written off
Set off between SL and PL
185,960
5,830
2,134
396
1,036
Required: Prepare the SLCA and the PLCA for the year, showing the closing balances.
3. Sir Francis Blythe is a business operator in Westmoreland. The following data was
obtained for the year 2013:
Non-current assets
Equipment at book value
Motor vehicle at book value
January
750,000
600,000
December
920,000
740,000
Transactions during the year:
i)
Equipment with book value of $35,000 was sold for $42,000
ii) New equipment was purchased for $220,000
iii) Motor vehicle with book value of $40,000 was sold for $25,000
iv) New motor vehicle was purchased for $200,000
Required:
a) Write up the equipment and motor vehicle accounts for the year, clearly showing the
amounts for depreciation
b) Write up the equipment and the motor vehicle disposal accounts indicating whether
there was a gain or a loss on the sale of each asset
4. The following data was obtained from the books of Lake Placid for the year 2013:
Account
At start of the year
During the year
At year end
Expenses
Stationery
Utilities
Owed $15,000
Prepaid $12,000
Paid $60,000
Paid $55,000
Owed $18,000
Owed $8,500
Revenue
Commission
Club members fees
Owed $22,000
Owed $8,000
Received $80,000
Received $60,000
Prepaid $15,000
Owed $6,000
How much is to be shown in the income statement for a) stationery and utilities expenses,
and b) commission and club members fees income?
2
Additional questions
1. At January 1, the total of the sales ledger accounts was 52,500. During the year the firm
collected 85,000 from credit customers, and at the end of the year the sales ledgers
totaled 45,000. How much was on credit to the customers during the year?
2. At January 1, the total of the purchases ledger accounts was 30,250, while at December
31 it was 35,300. During the year the firm paid out 63,500 to credit suppliers, while
enjoying cash discounts of 6,500. How much was purchased on credit during the year?
3. Prepare the sales ledger control account from the following details, clearly showing the
closing balance:
April 1 Sales ledger balance
4,396
Totals for the month:
Sales journal
Return inwards journal
Cash received from Cr customers
Discounts allowed
Set off against PL
Bad debts written off
50,456
1,139
46,490
1,455
259
99
4. From the following balances prepare the purchases ledger control accounts, clearly
showing the closing balance:
June 1 Purchases ledger balance
Totals for the month:
Purchases journal
Return outwards journal
Cheques paid to suppliers
Discounts received
Set off against SL
34,760
142,257
5,000
75,000
2,130
2,200
5. Tamar Lambert is a sole trader. The following data was obtained from his books for the
month of October 2013:
Cash sales
Cheques from debtors
Return inwards
Discounts allowed
2,560
1,520
75
30
3
Debtors at Oct 1
Debtors at Oct 31
Purchases on credit
Cash purchases
Stock at Oct 1
Stock at Oct 31
1,120
1,485
3,210
200
1,180
1,290
Required:
a) Prepare the debtors control account for the month, clearly showing credit sales.
b) Calculate the gross profit for the month.
6. Marguerite Guron operators a JUTA Tours business in Portland. The following data was
obtained for the year 2013:
Non-current assets
Office equipment at book value
Motor vehicle at book value
January
650,000
750,000
December
900,000
920,000
Transactions during the year:
i) Equipment with book value of $55,000 was sold at a loss of $12,000
ii) Motor vehicle with book value of $80,000 was sold for a profit of $5,000
iii) Depreciation charges for the year was: equipment $25,000, motor vehicle $40,000
Required:
a) Write up the equipment and motor vehicle accounts for the year, clearly showing the
amount that was purchased during the year
b) Write up the equipment and the motor vehicle disposal accounts indicating the selling
price for each asset
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