LPD 109-DBM105: FUNDAMENTALS OF ACCOUNTING I
ASSIGNMENT 1: DUE 26 th November 2022
Q1. For the following transactions state which accounts should be debited, and which should be
credited.
(a) Equipment bought on credit from M Sparks.
(b) Motor car bought and payment made by cheque.
(c) Owner pays own money into bank account.
(d) Fixtures sold on credit to J Harker.
(e) Cheque sent to A Johnson, a creditor.
(f) Cash received from P Shortland, a debtor.
Q2. Write up the following transactions in double-entry accounts of J White.
1 March White places £900 of his own money into the cash till for business use.
4 March He places £500 of the cash into a business bank account.
8 March White buys £400 of machinery, paying by cheque.
12 March White buys shop fittings for £200 on credit from M Yeates.
13 March Machinery worth £200 is sold for the same value for cash.
19 March White decided to bring his own computer into the business at a valuation of £380
Q3. Enter the following transactions in the Journal Entries, of L Linda: 20X7
July 1 Started in business with £20,000 in the bank.
2 R Hughes lent us £5,000 in cash.
3 Bought goods on credit from B Brown £1,530 and I Jess £4,162.
3 Sold goods for cash £1,910.
6 Took £200 of the cash and paid it into the bank.
6 Sold goods on credit to H Rise £1,374.
8 Sold goods on credit to P Taylor £341.
9 Bought goods on credit from B Brown £488.
10 H Rise returned goods to us £65.
11 Sold goods on credit to G Pate £535 and R Sim £262.
12 We returned goods to B Brown £94
13 Bought van on credit from Aberdeen Cars Ltd £4,370.
18 Bought office furniture on credit from J Winter Ltd £1,800.
19 We returned goods to I Jess £130.
20 Bought goods for cash £390.
22 Goods sold for cash £110.
23 Paid money owing to B Brown by cheque £1,924.
24 Goods returned to us by G Pate £34.
26 Returned some of office furniture costing £180 to J Winter Ltd.
27 L Linda put a further £2,500 into the business in the form of cash.
30 Paid Aberdeen Cars Ltd £4,370 by cheque.
31 Bought office furniture for cash £365.
