Lcci Passport to Sucess Level 1 Book-Keeping Answer
Level 1 Book-keeping
Solutions Booklet
For further information contact us:
Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com www.lcci.org.uk
London Chamber of Commerce and Industry (LCCI) International Qualifications are provided by EDI, a leading international awarding body.
Passport to Success
Level 1 Book-keeping
Solutions Booklet
The initials LCCI and the words LONDON CHAMBER OF COMMERCE AND INDUSTRY are registered trademarks belonging to the London Chamber of Commerce and Industry and are used under licence. Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the Publishers will be pleased to make the necessary arrangements at the first opportunity. © EDI 2008 First published in 2008. All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or held within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited. Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Cover photo: www.fotolia.com
TABLE OF CONTENTS
1. 2. 3. 4.
The Accounting Equation and the Balance Sheet Double entry system for assets, liabilities and capital Recording double entry for stock The double entry system for Expenses and Revenues and the Effect of Profit (or loss) and drawings upon capital
1 4 7 11
5. 6. 7. 8. 9.
Balancing accounts and the Trial Balance Trading and Profit & Loss Accounts: An introduction The Balance Sheet Final Accounts with further considerations The Division of the Ledger and Books of Original Entry
16 25 28 31 38 39 41 44 48 53 56 59 62 68 71 75 77 81 82
10. Bank Facilities 11. Cash Books 12. The Sales and
Solutions Booklet
For further information contact us:
Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com www.lcci.org.uk
London Chamber of Commerce and Industry (LCCI) International Qualifications are provided by EDI, a leading international awarding body.
Passport to Success
Level 1 Book-keeping
Solutions Booklet
The initials LCCI and the words LONDON CHAMBER OF COMMERCE AND INDUSTRY are registered trademarks belonging to the London Chamber of Commerce and Industry and are used under licence. Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the Publishers will be pleased to make the necessary arrangements at the first opportunity. © EDI 2008 First published in 2008. All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or held within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited. Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Cover photo: www.fotolia.com
TABLE OF CONTENTS
1. 2. 3. 4.
The Accounting Equation and the Balance Sheet Double entry system for assets, liabilities and capital Recording double entry for stock The double entry system for Expenses and Revenues and the Effect of Profit (or loss) and drawings upon capital
1 4 7 11
5. 6. 7. 8. 9.
Balancing accounts and the Trial Balance Trading and Profit & Loss Accounts: An introduction The Balance Sheet Final Accounts with further considerations The Division of the Ledger and Books of Original Entry
16 25 28 31 38 39 41 44 48 53 56 59 62 68 71 75 77 81 82
10. Bank Facilities 11. Cash Books 12. The Sales and