By Margaret Nicholson (auth.)
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Extra resources for Accounting Skills
Marples. 24 Credit sales to R. Sinclair (£145); K. Bray (£221). 26 Paid a cheque for £440 toM. Trenholme. 27 Goods returned by K. Bray £21. 28 Bought goods on credit (£350) from R. Marples. 29 Paid £250 by cheque to Linton Garages. 30 Goods returned toR. Marples (£25). 31 Received a cheque (£210) from D. Davey. 6 The following transactions are to be entered in the double entry accounts of T. Fountain, for the month of June 19-8. Jun 1 Started business with £10,000 in the Bank. 2 Bought goods on credit from M.
Paid Websters Garages £1,500 by cheque. Bought goods on credit from B. Harris (£450). Returned goods (£65) to B. Harris. 6 Balancing Accounts OBJECTIVES To enable students to ascertain the 'balance' on an account. The term 'balance' is the accounting word for the amount of the difference between the two sides of an account. To 'balance off an account the procedure is as follows: 1. 2. 3. 4. 5. Add up the side of the account which is the greatest in value. Add up the other side of the account. Deduct the smaller total; the difference between the two sides is the 'balance'.
A) Paid motor expenses in cash. Debit _ _ _ _ _ _ _ Account Credit _ _ _ _ _ _ _ Account (b) Paid rent by cheque. Debit _ _ _ _ _ _ _ Account Credit _ _ _ _ _ _ _ Account (c) Proprietor took cash out of the business for his own use. Debit Account Credit _ _ _ _ _ _ _ Account Account Credit _ _ _ _ _ _ _ Account (d) Paid rates by cheque. Debit (e) Received commission in cash. Debit Account Credit _ _ _ _ _ _ _ Account Account Credit _ _ _ _ _ _ _ Account (f) Paid insurance by cheque. 2 Complete the blank spaces by inserting the name of the account to be debited and the name of the account to be credited.