Preparing Ledger Balances and an Initial Trial Balance PLB (2003 standards) Answers
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1 Preparing Ledger Balances and an Initial Trial Balance PLB (2003 standards) Answers Section 1 Task 1.1, 1.2, 1.3 and 1.4 Subsidiary () Ledger TGB Limited 47 8,828 8,875 3,000 5,875 8,875 8,828 Compton and Company 3,000 6,775 9,775 8,600 1,175 9,775 6,775 Rowley Associates 94 20,913 21, ,575 21,007 20,913 Elton and Lowe 4,100 4,100 1,750 2,350 4,100 4,100
2 Creditors Main (General) Ledger 285, ,200 17, , , ,200 3,120 3,120 Creditors 3, ,120 3,120 ledger control 141 3,000 57,532 60,673 40,698 19,975 60,673 57,532 Motor vehicles 5,000 11,000 6,000 11,000 11,000 11,000
3 General repairs Insurance 2,900 3, ,050 3,050 3,050 Motor tax VAT 2, ,578 15, ,581 15,581 12,578
4 Tasks 1.5 and 1.6 Trial balance as at Debit Credit Motor vehicles 11,000 Office equipment 15,000 Stock 17,500 12,214 Cash 186 Sales ledger control 106,842 ledger control 57,532 VAT 12,578 Capital 30,710 Sales 418,200 Sales returns 2, ,200 3,120 Discounts allowed 350 Motor tax 270 General repairs 360 Wages 42,181 Insurance 3,050 Rent 3,000 Rates 2,100 Stationery 620 Telephone 800 Heat and light 1,300 Miscellaneous expenses 562 Total 522, , 140
5 Section 2 Note: Other relevant answers will be accepted. Task 2.1 (a) (b) The cheque is not signed. Words and figures do not match. Contact the customer and explain the situation and request a new cheque. Task 2.2 Dr ledger control 50 Cr Sales ledger control 50 Task ,000 x 17.5% 21,350 9,870/117.5x17.5 1,470 payable 19,880 Task 2.4 A trade discount is offered when a business wishes to reward a valued customer or A trade discount is offered to enable those in the trade to receive a better price than members of the general public. A cash settlement discount is offered as an incentive for customers to pay early. Task 2.5 It takes time for a cheque to clear because the cheque has to be passed to the bank of the issuer for payment before funds are made available to the recipient. Task 2.6 Revenue Revenue Capital Revenue Task 2.7 Integrated accounting software ensures that all relevant records are linked. Thus one entry into the computer will automatically update all of the relevant accounts.
6 Task 2.8 Dr Heat and light 78 Cr Miscellaneous expenses 78 Dr Rent 450 Cr 450 Dr Suspense 75 Cr Insurance 100 Dr Stationery 25 Reversal of incorrect entries, followed by the correct posting, will also be accepted. Task 2.9 (a) 1 June Sales Sales ledger control account 100,102 40, ,242 Discounts allowed Sales returns 32, , , , ,842 (b) Sales ledger control account balance as at 106,842 Total of subsidiary (sales) ledger accounts as at 106,992 _ Difference 150 _ (c) The discounts allowed of 150 may not have been recorded in the subsidiary ledger.
7 Task 2.10 (a) (c) 1 June 25 June 28 June 14 June 21 June 29 June Paper Design Bate Limited Law and Lodge BGC Limited 21,421 1,500 2,000 12,100 1,569 38,590 28,595 CASH BOOK Cheque Number 03 June June June June June June June 21 June 21 June 28 June Mills Limited Baker & Brown Legge Ltd Parker Papers Beta Ltd Paper Unlimited Bedford MBC LTM Limited charges 3, , ,595 38,590 (d) reconciliation statement as at 28 June Balance as per bank statement 25,495 Add (lodgements not on statement) Paper Design 1,500 Bate Limited 2,000 Less (unpresented cheques) Legge Limited 100 Beta Limited 300 Balance as per cash book 28,595
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