SOLUTION FOR QUESTION NO 1 - APRIL 2009

STATEMENT OF AFFAIR AS AT 1st JAN 2008

Office Equipment 30000 Creditors
Cash in Hand 2000 Accrued Telephone
Cash in Bank 34500 Capital as at 1st January
Stock 31000
Debtor 53000
Prepaid Water & Electricity 110
150610

DEBTOR CONTROL A/C

Balance b/d 53000 Cheque received
Sales 221460 Bad Debt
Discount allowed
Return Inward
Balance c/d
274460

CREDITOR CONTROL A/C

Cheque paid 105700 Balance b/d
Discount Received 670 Purchases
Balance c/d 32000

138370
 TRADING PROFIT AND LOST ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2008
Opening Stock 31000 Sales
Purchases 155870 - Return Inwards
186870
- Closing Stock (35000)
COGS 151870
Gross Profit 172790
324660
Gross Profit b/d

Expenses Revenue
Water & Electricity 2870 Discount Received
Telephone Bill 2900
Salaries 18540
Insurance 8490
Rental 12000
Bad Debt 800
Sundry Expense 1800
Depreciation of Equipment 5000
Discount Allowed 860
Net Profit 120200
173460

BALANCE SHEET AS AT 31 DECEMBER 2008

Fixed Asset Owner Equity
Office Equipment 25000 Capital beginning
+ Net Profit
- Drawing

Current Asset Current Liabilities

Closing Stock 35000 Creditors
Cash in Bank 149220
Cash in Hand 2000
Debtors 47000
Prepaid Electricity & Water 90
258310
SOLUTION FOR EXERCISE 3

DEBTOR CONTROL A/C

Debit balance 9175 Credit Balance
Credit Sales 40312 Bad Debt
Dishonoured Cheque 96 Discount allowed
Balance c/d 90 Cash Received
Return Inward
274460 Transfer (Control)
Balance c/d
49673

CREDITOR CONTROL A/C

Debit balance 80 Credit Balance
Discount Received 410 Purchases
Cash Paid 19800 Balance c/d
Returns Outwards 623
Transfer (Control) 350
Balance c/d 18601
39864
SOLUTION FOR APRIL 2010

STATEMENT OF AFFAIR AS AT 31 DECEMBER 2008

Furniture and Fitting 5000 Trade Creditors
Stock 8250 Bank Loan
Trade Debtors 14150 Electricity Accrued
Bank 5480 Capital as at 1st January
Prepaid Rent 450
33330

TRADE DEBTOR A/C

Balance b/d 14150 Bank Received
Credit Sales 203360 Bad Debt
Discount allowed
Return Inwards
Balance c/d
217510

CREDITOR CONTROL A/C

Cheque Paid 70000 Balance b/d
Discount Received 1500 Purchases
Returns Outwards 600
Balance c/d 9175
81275
 TRADING PROFIT AND LOST ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2009
Opening Stock 8250 Sales
Purchases 81815 - Return Inwards
90065
- Return outwards (600)
- Closing Stock (16450)
COGS 73015
Gross Profit 140845
213860
Gross Profit b/d

Expenses Revenue
Insurance Premium 15000 Discount Received
Telephone 2000
Salaries 56000
Electricity 4900
Rental 5300
Bad debt 900
Dicoount allowed 1000
Interest Bank 600
Furniture & Fitting 500
Net Profit 56145
142345

BALANCE SHEET AS AT 31 DECEMBER 2009

Fixed Asset Owner Equity
Furniture & Fitting 4500 Capital beginning
+ Net Profit
- Drawing

Current Asset Long Term Liabilities

Closing Stock 16450 Bank Loan
Debtors 14550
Bank 54370 Current Liabilities
Prepaid Rent 650 Creditors
 Accrued Electricity
Accrued Bank Loan Interest
90520
 EXERCISE 3

Prepare the Debtor Control Account and Creditors Control Account from the informa
givenas follows:

2006 Debit balance from Sales Ledger

39000 Jan 1 Credit balance from Sales Ledger
500 Debit balance from Purchases Ledger
111110 Credit balance from Purchases Ledger
Totals for the year:
Credit Sales
Credit Purchases
150610 Bad Debts
Dishonoured Cheque
Discount Allowed
Discount Received
Cash received from debtors
Cash paid to creditors
Returns outwards
Returns inwards
Tranfers from Sales Ledger to Purchases Ledger
224000 Tranfers from Purchases Ledger to Sales Ledger
800 Dec-21 Debit balances from Sales Ledger
860 Credit balances from Sales Ledger
1800 Debit balances from Purchases Ledger
47000 Credit balances from Purchases Ledger
274460

39000
99370

138370
1 DECEMBER 2008
326460
(1800)

324660

670

173460

111110
120200
(5000)
226310

32000

258310
 85
120
320
20582
512
350
27704
49673

8880
30964
20

39864
08
7460
425
10000
15445

33330

200560
900
1000
500
14550
217510

7460
73815

81275
1 DECEMBER 2009
214360
(500)

213860
140845

1500

142345

15445
56145
(1370)
70220

10000

9175
 525
600
90520
Control Account from the information

9175
85
80
8880

40312
30964
120
96
320
410
20582
19800
623
512
50
300
27704
90
20
18601