Preview

Double Entry Bookkeeping Test

Satisfactory Essays
Open Document
Open Document
502 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Double Entry Bookkeeping Test
DOUBLE ENTRY BOOKKEEPING TEST – NOVEMBER 2008.

TIME ALLOWED – 55 MINUTES.

The following balances were taken from the ledger accounts of The Glass Gateway, a business run by Paul Symons, at 30th June 2008:

£
Plant and machinery at cost 16 000
Vehicles at cost 15 000
Inventory at cost 5 400
Cash 450
Bank overdraft 3 950
Accounts payable – BG Wholessale 4 050
Accounts receivable – Headsup Limited 2 900
Capital account 18 278
Plant and machinery – accumulated depreciation at 30th June 2008 4 800
Vehicles – accumulated deprecation at 30th June 2008 8 672

During the three month period ending 30th September 2008 the following transactions were made by The Glass Gateway:

Transaction Number Date
1 1st July Bought glass on credit from Glassmir Services, £800
2 8th July Paid garage cash £350 for service of vehicle
3 18th July Sold glass for cash £250
4 20th July Paid BG Wholesale £2 000
5 25th July Paul Symons paid £8 000 into the business bank account
6 3rd August Sold glass on credit to Headsup Limited for £720
7 9th August Paid Glassmir Services by cheque £600
8 22nd August Sold glass on credit to Willow Partners, £6 560
9 31st August Paid rent by cheque, £900
10 5th Sept Bought glass from Glassmir Services £740 on credit
11 17 Sept Drew £1 000 cash from bank account
12 20 Sept Paid garage bill for petrol £250 in cash
13 24 Sept Banked cheque from Willow Partners for £6 560
14 25 Sept Paid electricity bill by cheque, £260
15 29 Sept Paid wages cash £660
16 30 Sept Sold glass on credit to Headsup Limited £400

You are provided with the following additional information:

1. Depreciation is charged at a rate of 15% using the straight-line method for plant and machinery and at 25% on a reducing balance basis for vehicles.

2. Inventory at 30th September 2008 was valued at cost at £2 030.

3. The rent paid on 31st August was for three months ended 30th November 2008.

4. Paul estimates his

You May Also Find These Documents Helpful

  • Satisfactory Essays

    From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.)…

    • 734 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Straight line method is the simplest method of calculating depreciation. The amount charged each year over the useful life of the asset is uniform. Companies add up all the costs incurred to bring the asset in use. After cost are added the value is divided by useful life of the asset in years so as to come up with the depreciation expense. The important characteristic of the straight line method is that the depreciation expense is constant. This helps the company when adjustments are needed and it is easy to predict. Double declining is also known as accelerated depreciation. Using double declining balance is done by using 200 percent of the straight-line method. This method subtracts the salvage value from the cost of the asset. The total is then divided by the useful life of the asset and multiplied by 200 percent to get the annual depreciation amount.…

    • 341 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    SUA_year end worksheet

    • 182 Words
    • 13 Pages

    Account # Account Title 2013 Unadjusted Trail Balance Debit Credit $ 108,942.49 $ 45,522.00 $ 1,149.19 $ 101,681.00 $ $ $ 24,000.00 $ $ 332,590.00 $ 81,559.50 $ - 10100 10200 10300 10400 10500 10600 10700 10800 10900 11000 Cash Accounts Receviables Allowance for Doubtful Accounts Invetory Prepaid Expenses Marketable securities Interest receivable Fixed assets Accumulated depreciation Note receivable 20100 20200 20300 20400 20500 20600 20700 20800 20900 21000 Accounts Payable Wages and salaries payable Federal income taxes withheld State unemployment taxes payable Federal unemployment taxes payable F.I.C.A taxes payable Federal income taxes payable Dividends payable Interest Payable Notes Payable $ $ $ $ $ $ $ $ $ $ 8,767.15 1,706.65 87.93 26.05 2,236.66 80,000.00 26000 27000 28000 29000 Common Stock Paid-in capital in excess of Par Income summary Retained Earnings $ $ $ $ 225,000.00 90,264.99 30100 30200 30300 30400 30500 30600 30700 30800 Sales Sales returns and allowances Sales discounts taken Cost of goods sold Purchases Purchases returns and allowances Purchases discounts taken Freight-in 30900 31000 31100 31200 Gain/Loss on sale of fixed assets…

    • 182 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    ACA1 TASK 3

    • 435 Words
    • 2 Pages

    The calculation of the straight line method of depreciation is by taking the cost of the item minus its salvage value then dividing that figure by the expected year’s life cycle of the item. This is a non complex calculation and it reduces net income and the equal amounts of depreciation are deducted from every life cycle year of the item.…

    • 435 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Acg 320

    • 496 Words
    • 2 Pages

    Using straight line deprecation of 1 year means that 22,500 (1*22,500) has been added to the accumulated deprecation. The cost of the assets $100,000 minus $22,500, equal the book value at the end of December 31, 2005, of $77,500.…

    • 496 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ACC 291 Final Exam

    • 958 Words
    • 4 Pages

    1. On January 1, a machine with a useful life of five years and a residual value of $40,000 was purchased for $120,000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation?…

    • 958 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    The depreciation method that provides you the highest depreciation expense in the first year is the Declining-balance method because with this method there is a decreasing annual depreciation expense over the asset’s useful life.…

    • 875 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Week 3 Quiz 1

    • 1430 Words
    • 6 Pages

    For the double-declining-balance method, the depreciation rate would be 25% or (1/N X 2), with n = 8 years. For 2011, annual depreciation expense is $15,000 = $60,000 (book value) X .25; for 2012, annual depreciation expense is $11,250 = [($60,000 - $15,000) X .25].…

    • 1430 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    5. An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of…

    • 395 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    3. Depreciation expenses of plants, machinery and equipment using straight-line method, instead of accelerated methods as used previously.…

    • 634 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Macys vs Nordstroms

    • 2857 Words
    • 12 Pages

    c. Depreciation of owned properties is provided primarily on a straight-line basis over the estimated asset lives, which range from fifteen to fifty years for buildings and building equipment and three to fifteen years for fixtures and equipment. F-10, 10-K…

    • 2857 Words
    • 12 Pages
    Better Essays
  • Satisfactory Essays

    Flor Ltd: Case Study

    • 513 Words
    • 3 Pages

    I wrote to you on 17 October 2015 requesting a refund of £2560.00 for the payment made to Flor Ltd in January 2014. I emailed to you the documents relating to the breach of contract by Flor Ltd and the County Court Judgement against them.…

    • 513 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    accounts cambridge paper

    • 845 Words
    • 4 Pages

    Paula Redwood, a sole trader, prepared the following Trial Balance from her accounts on 30 April…

    • 845 Words
    • 4 Pages
    Good Essays
  • Good Essays

    in preparing a DFD, when data are transformed through a process, the symbol used should be…

    • 997 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    accounts

    • 1615 Words
    • 7 Pages

    Show Journal entries to record the following transactions. Post them into appropriate Ledger Accounts and then extract a Trial Balance on 31st December, 2012:…

    • 1615 Words
    • 7 Pages
    Powerful Essays