Accounting 11
Exercise 4-3
1. What 3 pieces of information does an account contain?
2. What are the 2 steps in calculating the balance of a T-account?
3. What is a pin total or pencil footing?
4. How do you know which type of balance (debit or credit) an account has?
5. What kind of account usually has a debit balance (asset, liability or owner’s equity)?
6. What kind of account usually has a credit balance (asset, liability or owner’s equity)?
7. What does it mean when an account has an exceptional balance?
8. Give an example of an asset with an exceptional balance: A liability:
9. Complete the 4 different ways the term “on account” is used:
a. if an item is purchased _________________
b. if an item is sold ______________________
c. If a payment is made to a _______________ to ____________ the amount owed.
d. If a payment is received from a __________ to ___________ the amount owed.
10. Calculate the balance of each account listed below. Use pin totals, or pencil footings, and circle
the balance on the correct side of the account.
Bank
250 190
1 210 48
360 512
29
A/R – H. Devrie
25 175
150
70
35
A/P – P. Helka
30 75
45 40
175
R. Smart, Capital
150 3 140
a. What does the debit balance in the H. Devrie account mean?
b. What does the credit balance in the P. Helka account mean?
11. The following 3 accounts have exceptional balances. Answer the questions below:
a. for each account, explain what is unusual about the balance and give a possible cause.
i. Bank:
ii. A/R:
iii. A/P:
Bank
500
A/R – P. Chu
100
A/P – J. Reicher
300
12. Identify each as Debit or Credit by marking the correct column with an X.
Debit
a. The left side of an account
b. The balance of an account receivable
c. The balance of a supplier’s account
d. A decrease in liability
e. An exceptional balance in the Bank account
f. The balance in an equipment account
g. The right side of an account
h. The balance in a Bank Loan account.
i. An exceptional balance in an account payable
j. The larger side of a liability account
k. a creditor’s account
l. a customer’s account
m. an increase in an asset
n. a debtor’s account
o. The effect on accounts receivable when an item is sold on account
p. The effect on accounts payable when an payment is made on account
q. The effect on account receivable when there is a receipt on account
r. The effect on accounts payable when an item is purchased on account
Credit