Double Entry Exercises 1

Introduction to Book-keeping

Fill in the blanks in the following sentences from the selection of terms given at the bottom of the page.

1 The recording of accounting data is known as .
2 A change in the position of a business, i.e. the transfer of value from one to another, is a .

3 A person to whom money is owed for goods is a .
They have given the firm ___________.
4 A person who owes money to the firm is a .
They are in ______ to the firm.
5 Resources supplied by the owner is called ____.
6 The actual resources in the business are called ___.

7 When someone other than the owner has supplied some of the resources the amount owing for these are .
8 ASSETS = CAPITAL + LIABILITIES
This is the Equation.

ACCOUNTING ASSETS BOOK-KEEPING CAPITAL
CREDIT CREDITOR DEBT DEBTOR
LIABILITIES TRANSACTION

Exercises

1.1 You are to complete the gaps in the following table:

Assets Liabilities Capital
£ £ £
(a) 12,500 1,800 ?
(b) 28,000 4,900 ?
(c) 16,800 ? 12,500
(d) 19,600 ? 16,450
(e) ? 6,300 19,200
(f) ? 11,650 39,750

1.2 You are to complete the gaps in the following table:

Assets Liabilities Capital
£ £ £
(a) 55,000 16,900 ?
(b) ? 17,200 34,400
(c) 36,100 ? 28,500
(d) 119,500 15,400 ?
(d) 88,000 ? 62,000
(e) ? 49,000 110,000

1.3 Distinguish from the following list the items that are liabilities from those that are assets:

(a) Office Machinery (d) Motor vehicles
(b) Loan from C Shirley (e) We owe for goods
(c) Fixtures and fittings (f) Bank balance

1.4 Classify the following items into liabilities and assets:

(a) Motor vehicles (f) Owing to bank
(b) Premises (g) Cash in hand
(c) Creditors for goods (h) Loan from D J
(d)