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 4