Topic 1
Matches to GCE O’Level Syllabus Content 1.1 & 1.2
Review Questions:
1. What is the definition of accounting?
2. What is the difference between accounting and bookkeeping?
3. What role does accounting play in a business?
4. How can past performance of a business be used as a guide for future decision-making?
State which accounting principle the following scenario violates.
1. An accountant chooses to record fictitious revenue in order to boost his
own bonus.
2. A company prepares their financial statements at irregular intervals
3. A business’s financial information is recorded and reported together with
the owner’s financial information
4. A company carries the value of its brand in its balance sheet.
5. Some transactions are recorded without source documents
State the accounting concept described in each of the following cases.
1. Assets are recorded at their original transaction values.
2. Financial statements are prepared on the assumption that the business
will operate indefinitely.
3. Revenue is only recorded once the goods are passed to the customer.
4. Expenses incurred in producing revenue are recorded in the same period
as the revenues generated.
5. Once an accounting principle is adopted, the business sticks to that
principle in following accounting periods.
Royal Sports sells sports equipment and provides sports lessons. It is owned and operated by Vincent
Tay. Vincent Tay’s wife, Dorathy, owns and operates Good Dress Boutique.
For each of the following transactions, identify which of the entities listed should record the transaction
in its records.
Entities
R Royal Sports
G Good Dress Boutique
X None of the above
1. Dorathy deposited a $4500 into OCBC Bank, her personal bank account.
2. Dorathy purchased three dozen dresses from a local designer to organise a X’mas sale.
3. Vincent paid a local doctor for his annual physical checkup.
4. Vincent paid a local doctor for his annual physical checkup.
5. Dorathy sold twenty dresses.
6. Vincent paid for dinner and a movie to celebrate their tenth wedding anniversary
7. Dorathy paid a cash donation of $1,000 to an orphanage.
8. Vincent paid $1,000 for the purchase of sports shoes.
9. Dorathy paid salaries to the shop assistant.
State the accounting concept which has been applied to the following cases.
1. Over the years, a company has developed a reputation for delivering
top-notch customer service. This corporate reputation is not recorded
in the books.
2. An accountant is uncertain of the value of the inventory. The
accountant chooses a method that will report a lower value.
3. An accountant should generally use the same accounting methods
from one accounting period to the next.
4. Net profit is derived from revenue earned less expense incurred during
the same accounting period.
Topic 2
Matches to GCE O’Level Syllabus Content 2.1
Review Questions:
1. Define assets, liabilities and owner’s equity.
2. State the accounting equation.
3. Distinguish between cash transactions (resulting in immediate cash payment) and credit transactions
(payments are postponed)
For the following accounts, please put a tick in the column where it belongs.
Assets Liabilities Owner’s Equity Revenue Expenses
Cash at Bank
Bank Overdraft
Inventory
Trade Debtors
Purchases
Salaries
Furniture and
Fittings
Drawings
Discount Given
Rent
Sales
Advertising
Bank Loan
Trade
Creditors
Motor Vehicle
Interest on
Bank Loan
Owner’s
capital
Commission
revenue
The following information is provided in a company’s financial statements as at 30th June 2014
Account Balance
$
Furniture 6,000
Trade Debtors 3,500
Trade Creditors 2,500
Stock 3,000
Bank Loan 4,500
Cash at Bank 4,000
Required: Compute the Owner’s equity as at 30th June 2014
Assume that John decides to start a company to manufacture tables. The following transactions lay out
the various transactions that occurred from the time he decides to start his company to the time he
makes a sale. For the following transactions, state which elements of the accounting equation are
affected. The first one has been done for you.
(Remember that the equation is Assets = Liabilities + Owner’s Equity
Assets Liabilities Owners Equity
1. John invests $20,000 of his own Cash: +$20,000 Capital: $+20,000
money into the company in order
to get it started.
2. To further raise capital, the
company takes a bank loan of
$10,000
3. The company purchases inventory
worth $5,000 and pays for it in
cash.
4. The company purchases equipment
worth $5,000 on credit in order to
manufacture tables.
5. The company produces its first
batch of tables. The company sells
the tables to Company XYZ for
$6,000 on credit. The inventory
used to produce the tables cost
$3,000.
6. John withdrew $1,000 from the
company for personal use.
E.g. Company pays its creditors cash of Cash: -$1,500 Trade Creditors: -
$1,500 $1,500
Owner starts business with $15,000 of his
own money and a computer that costs
$3,000
Company buys inventory worth $ 7,500 on
credit.
Company takes a bank loan of $10,000, of
which $7,500 is used to pay trade creditors.
Company sells goods costing $3,000 for
$5,000 on credit.
Trade debtors pay $5,000 in cash.
(Pg 26; Ex 1-10)
Amy Ang operates her own jewellery retail shop. Summary financial data for December are presented in
equation form as follows. Each line designated by a number indicates the effect of a transaction on the
equation. Each increase and decrease in owner’s equity, except transaction (5), affects the company’s
net profit.
Cash + Supplies + Land = Liabilities + Owner’s equity
Bal. 6,000 750 30,000 7,500 29,250
1. +15,000 +15,000
2. -2,000 +2,000
3. -11,250 -11,250
4. +500 +500
5. -1,500 -1,500
6. -5,300 -5,300
7. -800 -800
Bal. 950 450 32,000 2,700 30,700
a) Describe each transaction
b) What is the amount of net decrease in cash during the month?
c) What is the amount of net increase in owner’s equity during the month?
d) What is the amount of the net profit for the month?
e) How much of the net profit for the month was retained in the business?
(Pg 26; Ex 1-11)
The profit and loss statement of a sole proprietorship for the month of April shows a net profit of
$5,000. During the same period, the owner withdrew $6,000 in cash from the business for personal use.
Is it true that the business incurred a net loss of $1000 during the month? Explain.
Topic 3
Matches to GCE O’Level Syllabus Content 2.2
Review Questions
1. Define revenue and expenses.
2. Brieftly explain the double entry rules.
(Guide to GCE; Topic 3; Additional Ex 1-5)
A. For each of the following transactions, write down which account is to be debited and which
account is to be credited.
Account(s) to be Debited Account(s) to be credited
Owner contributes $10,000 in
capital to the Company
Company buys equipment worth
$3,000 in cash
Company withdraws $1,000
from its bank account for office
use.
Goods costing $3,000 is sold for
$5,000 in cash
Company purchases $2,000 of
goods in cash.
Company pays $2,000 for rental
Customer returns $500 worth of
goods to the Company.
B. The following lists some transactions undertaken by hPHone Pte Ltd, a phone trading company,
during the month of July 2014.
Company buys inventory of
$5,000 on credit.
Paid $350 for utilities.
Bought $4,000 of equipment in
cash
Sold phones costing $2000 for
$3,500 on credit
Returned defective phones
worth $500.
Received commission revenue of
$800 in cash.
Customer returned defective
phones worth $350
Sold old equipment worth $1000
for $800
Took out a bank loan of $5,000
Paid $250 in interest on the bank
loan
Paid creditor $5,000.
C. The following balances appeared in hPhone’s books on 1st August 2014.
Inventory 3000
Debtors 5000
Sales 18000
Creditors 4000
Cash 2000
Sales Returns 500
During the month of August 20x4, the following transactions occurred.
20x4 Events:
Aug 4 Sold phones costing $2,500 for $ 4,000 on credit.
Aug 6 Bought phones for $3,000 on credit.
Aug 10 Customer returned defective phones costing $800
Aug 15 Paid creditors for amount owing as at this date
Aug 22 Trade debtors paid $5,000 in cash.
Aug 28 Sold phones costing $500 in cash.
Required
Prepare all the necessary ledger accounts to record the opening balances and transactions for the
month of August 20x4. Balance the appropriate accounts at the end of the month. Please show dates
and details clearly.
D. The following are the transactions hPhone had with one of its customers, Wendy, in June 20x4.
20x4
June 1 Balance owed by Wendy - $2,000
June 6 Wendy pays balance outstanding in cash.
June 10 Wendy bought goods from hPhone at list price of $5,000 less 20% trade discount on
credit.
June 18 Wendy returns defective goods at the list price of $500
June 26 Wendy pays balance outstanding
Required:
Prepare the account of Wendy in hPhone’s books for the month of June 20x4 and balance the account
as at June 20x4. Please show dates and details clearly.
E. The following are balances extracted from hPhone’s books on 1 July 20x4.
$
Bigsoft 2500 Cr
Banana Phone 3250 Dr
Transactions with these 2 customers for the month of July 20x4 were as follows:
20x4 Events
July 2 Bigsoft sent a cheque for $2,000
July 6 Paid Banana Phone the outstanding balance, less 1% cash discount.
July 10 hPhone bought goods from Banana Phone at the list price of $5000 less trade
discount of 10% on credit.
July 12 Bigphone bought goods worth $3,500 on credit. They were charged another $100 for
transportation.
July 17 hPhone returned defective goods to Banana Phone at a list price of $700
July 21 hPhone sends a cheque of $2,000 to Banana Phone
July 26 Bigsoft sends a cheque to pay off its remaining balance.
Required:
Prepare the ledger accounts for Bigsoft and Banana Phone in hPhone’s books for the month of July 20x4.
Balance off the accounts at 31 July 20x4. Please show dates and details clearly.
Topic 4
Matches to GCE O’Level Syllabus Content 2.3, 2.4, 2.4.1, 2.4.2, 2.4.3, 2.4.4 & 2.5
Review Questions
1. State the function of source douments.
2. Identify the records found in books of prime entry.
3. Explain the advantages of having subsidiary books (ie, purchase journals and sales journals).
(GCE O’Level Principles of Accounts MCQ Bank; Topic 4; Question 2, 3 and 7)
Which of the following is a book of original entry?
A. The sales ledger
B. The general ledger
C. The purchases ledger
D. The purchases ledger
Which of the following will appear as an individual account?
A. Suppliers and customers
B. Owner’s capital and creditors
C. Expenses, losses and revenue
D. Assets and liabilities
Which of the following record will NOT be found in the General Journal?
A. Profit earned from selling old machinery.
B. Interest earned from delayed payment from customer. The business has yet to receive this
payment.
C. Drawing of inventory by owner not for the purpose of the business.
D. Bought inventory from suppliers on credit.
(Guide to GCE; Topic 9; Worked Example 1)
4. A particular account is extracted from Skin Lab’s books. This account belongs to Beauty Perfect
Private Limited.
Beauty Perfect Private Limited
20x1 $ 20x1 $
18 Nov Bank 1,400 01 Nov Balance b/d 1,000
18 Nov Cash Discount 50 09 Nov Purchase of Goods 850
20 Nov Returns 80
31 Nov Balance c/d 320
1,850 1,850
Required:
State the source documents and the book of original entry for all transactions from 09 Nov to 20 Nov
20x1.
(Guide to GCE; Topic 9; Additional Ex 1-2)
4. For all the transactions, complete the journal entries and name the book of original entry and
the source documents required.
Part Transaction Source Book of
Document Original Entry
I Bought cables for office by cheque. Dr
Cr
II Received cash from customer. Cash is Dr
subsequently banked in. Cr
III Returned some goods bought to supplier. Dr
These goods have not been paid for. Cr
IV Credit Sales Dr
Cr
V Accountant found out that the customer Dr
was undercharged. Customer agreed to Cr
pay the correct amount.
4. A particular account is extracted from Yummy Candy’s books. This account belongs to Cake Boss
Limited.
Cake Boss Limited
20x2 $ 20x2 $
01 Feb Balance b/d 2,000 10 Feb Returns 350
05 Feb Sales 500 12 Feb Cash 1,500
28 Feb Bad Debt 650
2,500 2,500
Required:
a) State the books of original entry and source documents to record all transactions from 05
Feb to 28 Feb.
b) Which ledger does Cake Boss Limited belong to in Yummy Candy’s Books?
(Remember that there are three types of ledgers. Students should pay special attention to the balance
of Cake Boss Limited to determine which ledger it is from.)
NB: Students are advised to return to this question when Bad Debt is taught.
5. Super Sonic is a resturant that is famous for their take-aways. Super Sonic had the following
transactions in the month of May 20x1:
(i) The owner, Daniel, bought a $10,000 lorry using his own money for the business.
(ii) Received a bill of $200 for electricity bill.
(iii) Sold an old photocopier for $500 to Best PC on credit.
(iv) Daniel took $500 worth of take-away to treat his family.
Required:
Complete the journal entries for the above transactions. Name the source documents for each
transaction.
Topic 5
Matches to GCE O’Level Syllabus Content 2.6 & 2.6.2
(POA Tropical Guide; Topic 5; Model Exam Questions 1, 3 & 4)
1. The following transactions relates to Paula Stationary School in the month of January 20x1.
20x1 Events
Jan 1 The accountant reported $400 cash in hand and $6,000 cash at bank.
Jan 5 The HR manager paid $1,200 salary to one of the employee by cheque.
Jan 6 The purchasing clerk bought $600 worth of stationary by cheque.
Jan 10 The admin clerk paid $230 for a utility bill with cash.
Jan 14 Received a $900 cheque from Panda Corporation. It is to repay $1,000 of payables after a
cash discount of 10%.
Jan 20 Repaid Kong Hwa Supply $120 in cash after deducting $30 cash discount.
Jan 24 Closed cash sales for $2300.
Jan 26 Delivered goods to customers. Sales are made on credit.
Jan 28 The accountant deposited $2,000 into the company’s bank account.
Jan 31 Paula Stationery School gave Learning Lab a 12% cash discount. Received a cheque to settle
fully a bill of $1,500 (before discount).
Required:
Record all relevant transactions into Paula’s Cash Book. Balance the Cash Book as of 31 Jan 20x1.
NB: GCE POA Syllabus questions will not be set on drawing up a 3-column
2. Rachel Aw handles the petty cash for Collin Company. Collin sets the imprest amunt to be $150.
On 1st of July 20x1, there is $40 in the petty cash. The following transactions occur in the month
of July.
20x1 Transactions $
July 1 Petty cash was restored. Unknown
July 3 Bought toner for priner. 50
July 4 Employee borrowed from petty cash to pay for lunch. 10
July 9 Paid for minor repair of pipelines. 30
July 13 Employee returned the amount owed. 10
July 20 Paid for delivery to Singpost. 5
July 22 Bought paper to refill empty printer. 10
July 31 Petty cash imprest system is restored Unknown
Required:
a) Record the above transactions in Collin’s Petty Cash Book.
b) State the reason for having an imprest system.
3. Sharmaine Soh is assigned to be in-charge of Fashion Hats’s Petty Cash Book. The float is set to
$100. The listed events, happened in September 20x1, are relevant to the Petty Cash Book.
20x1 Transactions $
Sep 1 Petty cash opening balance 40
Reimbursement Unknown
Sep 3 Postage fee 13
Sep 10 Gave a loan to one of Fashion Hat’s staff 20
Sep 14 Reimbursed cab fare 10
Sep 18 Bought cookies for pantry 9
Sep 20 Paid for office cleaning 50
Required:
a) Record the above transactions for Fashion Hat’s Petty Cash Book. Balance the Petty Cash Book
on Sep 30th and calculate the reimbursement done at the end of September.
b) State the advantage of having a Petty Cash Book.
c) Under which heading will petty cash balance appear in Fashion Hat’s Balance Sheet?
(POA Hot Spots; Topic 2; Q5)
4. Style Limited purchases goods on credit for $1200, less 25% trade discount. The company also
enjoys a cash discount of 5% if payment is received in full within 14 days.
Required:
a) How much will the business have to repay if it plans to do so within 14 days?
b) Does Style Limited need to record the trade discount and cash discount it enjoys?
(POA Hot Spots; Topic 2; Q6)
5. The balance of the two discounts recorded in Fast Taxi’s Cash Book are as following:
$200 debit
$400 credit
Required:
Which one is supposed to be posted to the Discount Allowed account and to the Discount
Received account?’
(Guide to GCe O POA; Topic 7; Q3)
6. The table below is an extraction of Koh’s Cash Book for the month.
Cash Book
Date Items Disc. Cash Bank Date Items Disc. Cash Bank
20x1 $ $ $ 20x1 $ $ $
Aug 1 Balance b’d 400 Aug 1 Balance b/d 840
12 Sales 230 430 8 Stationery(i) 25
14 Lee(ii) 720 16 Purchases 330
21 Cash 200 17 Yeo 12 228
21 Cash(iii) 200
29 Machinery 120
Required.
a) Explain the nature of the balance of $840 reflected on August 1st 20x1.
b) Describe the events that have occurred in items (i), (ii) and (iii).
c) Why does purchases on 16th August not include the supplier’s name? What is the difference
between the purchase made on 16th August and 17th August?
d) There is $12 cash discounted related to Yeo’s account. Is that a discount received or
discount allowed? Calculate the percentage of cash discount.
Topic 6
(O’Level POA MCQ Bank; Topic 13; Q 1,3,6 & 11)
1. A cheque paid by the business, but not yet passed through the bank is:
A. a standing order
B. a dishonored cheque
C. a credit transfer
D. an unpresented cheque
2. Dishonored cheques are recorded in the
A. credit side of adjusted cash book
B. debit side of adjust cash book
C. added to balance of bank statement
D. deducted to balance of bank statement
3. At the end of the month, the accountant is adjusting the cash balance. Which of the following is
not used for adjustment?
A. Errors made in the Cash Book
B. Error made in the Cash Book last month but are corrected
C. Bank charges credited in Bank Statement
D. Monthly insurance payment through bank
4. On 31 Jan 20x1, KOPI shop has received its Bank Statement. On it, it shows an overdrawn of
$10136. As of that date, cheques drawn on its account but not yet presented amounts to $4998,
and cheques paid into its account but to yet credited by the bank amounts to $5896. His bank
statement shows that interest of $181 has been charged but this is not reflected in his Cash
Book. What is the bank balance after bank reconciliation?
A. $9419 Cr
B. $9238 Cr
C. 10853 Cr
D. 10853 Dr
(POA Topical Guide; Topic 8; Worked Example 1 & 2)
5. Extractions of King Kong’s Cash Book and Bank Statements are shown below.
Cash Book – Bank Account
20x1 Items $ 20x1 Items Cheque
No.
Nov 1 Balance b/d 2,500 Nov 5 Utilities Bill 0045 730
Nov 11 Janel 540 Nov 18 Cyber Printer 0046 3,000
Nov 13 Vivan 2,400 Nov 22 SG Repair 0047 2,220
Nov 30 Michelle 2,800 Nov 30 Balance c/d Unknown
Bank Statement
Date Items Debit Credit Balance
20x1 $ $ $
Nov 1 Balance b/d 2,600
Nov 3 Deposit 400
Nov 4 Cheque- 0044 500 2,500
Nov 6 Cheque- 0045 730 1,770
Nov 10 Deposit 540 2,310
Nov 15 Deposit 2,400 4,710
Nov 21 Cheque-0046 3,000 1,710
Nov 22 Banker’s Order-Rent 420 1,290
Nov 24 Unpaid cheque 540 750
Nov 26 Dividends from TELE shares 490 1,240
Nov 31 Bank Charges 120 1,120
Required:
a) Update the Cash Book.
b) Prepare a Bank Recounciliation as at 31 November 20x1.
c) What is the purpose of bank statement?
6. On 1 Jan 20x2, Johnson Inc’s bank statement shows a closing credit balance of $660 as of 31 Dec
20x1. Its Cash Book has a debit balance of $610. The following transactions have caused a
difference in the two balances:
I. Johnson Inc received a cheque of $470 from its customer. The clerk entered the amount
into the Cash Book but the bank only credited it on 3 Jan 20x2.
II. The Bank imposed $50 charges for the month of December.
III. Johnson Inc’s shares gave out $240 dividends. This was paid directly to the bank.
IV. Cheques of $250 and $400 used to pay suppliers have not been presented to the bank.
V. The bank informed the clerk that a cheque of $100 bounced.
VI. Insurance of $120 had been charged to the bank account but did not appear in the Cash
Book.
Required:
a) Update the Cash Book.
b) Prepare a Bank Recounciliation Statement for the month ended 30 June 20x1.
(POA Topical Guide; Topic 8; Additional Exercises 6)
7. Ecogarden Supplies’s Cash Book and Bank Statement for the month of July 20x1 are as following:
Cash Book – Bank Account
20x1 Items $ 20x1 Items Cheque
No.
July 1 Balance b/d 5,000 July 7 Electricity Bill 00021 7,300
July 5 June Florist 750 July 13 Seeds & Soil Inc 00022 3,550
July 11 Sales 990 July 20 Florist Tools 00023 3,080
July 13 Humming Flowers 1,400 July 24 Moss Sheets 00025 750
July 18 Simply Gifts 220
July 30 The Little Fig Shop 330
Bank Statement
Date Items Debit Credit Balance
$ $ $
July 1 Balance b/f 7,200 Cr
July 3 00018 700 6,500
July 5 Interbank Transfer-A/c 2310 580 7,080
July 6 00020 1,500 5,580
July 7 Cheque 750 6,330
July 8 00021 7,300 970 Dr
July 13 Cash 990 20 Cr
July 20 Cheque 220 240 Cr
July 21 Standing Order-Insurance 720 480 Dr
July 26 75425 600 1080 Dr
July 28 Interest Earned 180 900 Dr
July 31 Bank Charges 150 1050 Dr
The accountant of Ecogarden Supplies found out that the cheque 0025 was supposed to be $600. It was
erroneously recorded as $750 in the Cash Book.
Requred:
a) Update the Cash Book.
b) Prepare the Bank Reconciliation.
Topic 7
Review Questions:
I. State the purpose of a trial Balance.
II. Name the type of errors that will be revealed by a trial balance.
III. State the limitations of a trial balance.
(Guide to Gce O Level POA; Topic 4; Additional Exercises 2)
IV. Jack is a junior accountant. He has prepared the Trial Balance below.
Trial Balance for the year ended 31 December 20x1
Ledger Account Debit Credit
$ $
Stock, 1 Jan 20x1 10,700
Stock, 31 December 20x1 8,600
Discount Allowed 310
Discount Received 450
Rent Revenue 960
Purchases 97,000
Returns Outwards 1,400
Revenue 135,100
Returns Inwards 1,100
Premises 70,000
10-Year Loan 8,000
Machinery 15,000
Capital 84,600
Cash at Bank 7,100
Debtors 11,300
Creditors 7,600
Repair Fee 600
Carriage Inwards 600
Carriage Outwards 400
Drawings 9,000
Rent 15,000
242,410 242,810
Required:
You notice that Jack has made many mistakes in the preparation of the trial balance. Prepare an
adjusted trial balance to help Jack.
V. The following adjusted trial balance is extracted from Teddy’s Books as of 30th June 20x1.
Trial Balance for the year ended 31 December 20x1
Ledger Account $
Capital 3,610
Premises 8,900
Salary 4,200
Stationary Expenses 560
Machinery 6,490
Returns Inwards 480
Returns Outwards 270
Purchases 15,650
Sales 30,000
Bank Overdraft 1,400
Creditors 6,000
Debtors 5,000
Capital 3,610
Teddy’s boss is interested to understand how well the company is performing in the month of
January 20x2. The following transactions take place during January.
I. Cash Sales (deposited) - $5,125
II. Credit Sales - $12,300
III. Purchase of goods with credit - $11,525
IV. Rent Expense paid by cheque - $4,000
V. Return Inwards - $100
VI. Return Outwards - $40
VII. Drawing of Cash - $400
VIII. Drawing of Inventory - $500
Required:
Prepare an updated trial balance as at 31 Jan 20x2. Relevant workings are required.
Topic 8
XYZ Business
Trading Account for the year ended 31 Dec 20x1
$ $ $ $
Opening Stock X Sales X
Purchases X Less: Return X
Inwards
Less Return X X
Outwards
X
Add cost X
related to
purchases
Carriage X
Inwards
X
COGAFS X
Less: Closing X
Stock
COGS X
Gross Profit X
X X
The following balances were taken from Tim Sum’s books as at 31 Dec 20x1:
Type of Accounts Accounts $
Commision Revenue $1,675
Opening Stock 4,100
Sales Returns 925
Purchases Returns 1,435
Rent Exepnse 1,235
Salaries 2,375
Office Repair Expense 575
Import Duties incurred for 700
inventory
Carriage Outwards 675
Carriage Inwards 1,000
Sales 71,450
Purchases 57,700
Insurance 850
Discount Received 400
Discount Allowed 500
The following transactions are relevent to the Trading and Profit and Loss account.
I. Closing Stockvalued is valued at 4,400.
II. 80% of the insurance is used for employees. The remaining is used in the purchase of
goods.
III. $1,000 of the toal Salaries is incurred for reselling the goods.
Required:
a) Label the accounts as T for trading account and/or PL for profit and loss account.
b) Prepare Tim Sum’s Trading and Profit and Loss account for the year ended 31 Dec 20x1.
(Guide to GCE O/N Level Principles of Accounts – Chapter 15 Qn1)
Hot Pizza is a trading business that sells frozen fast food to supermarkets. The following is Hot Pizza’s
adjusted Trial Balance as at 31 December 20x1:
Hot Pizza
Trial Balance as at 31 Dec 20x1
Ledger Account Debit Credit
$ $
Stock – 1 Jan 20x! 25,500
Purchases 52,000
Sales 87,500
Returns Inwards 4,000
Returns Outwards 2,500
Carriage Outwards 2,300
Carriage Inwards 1,700
