Double Entry Bookkeeping Test

Topics: 2008, Accounts receivable, Balance sheet Pages: 2 (502 words) Published: December 8, 2012
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
Cash450
Bank overdraft 3 950
Accounts payable – BG Wholessale4 050
Accounts receivable – Headsup Limited2 900
Capital account18 278
Plant and machinery – accumulated depreciation at 30th June 20084 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 NumberDate
11st JulyBought glass on credit from Glassmir Services, £800 28th JulyPaid garage cash £350 for service of vehicle
318th JulySold glass for cash £250
420th JulyPaid BG Wholesale £2 000
525th JulyPaul Symons paid £8 000 into the business bank account 63rd AugustSold glass on credit to Headsup Limited for £720 79th AugustPaid Glassmir Services by cheque £600
822nd AugustSold glass on credit to Willow Partners, £6 560 931st AugustPaid rent by cheque, £900
105th SeptBought glass from Glassmir Services £740 on credit 1117 SeptDrew £1 000 cash from bank account
1220 SeptPaid garage bill for petrol £250 in cash
1324 SeptBanked cheque from Willow Partners for £6 560
1425 SeptPaid electricity bill by cheque, £260
1529 SeptPaid wages cash £660
1630 SeptSold 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 telephone...
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