, Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual
Answers
Note: To save time and space, the months are omitted in the Ledger accounts which follow. The day of the
month is shown in brackets.
Answer to Question 1.2A BA 1
(a) 49,000 (b) 75,100 (c) 65,800
(d) 48,100 (e) 81,300 (f) 85,900
Answer to Question 1.4A BA 1
(a) Asset (f) Asset
(b) Asset (g) Liability
(c) Liability (h) Liability
(d) Asset (i) Asset
(e) Asset
Answer to Question 1.6A BA 1
Assets List Wrong: Accounts payable, Capital.
Liabilities List Wrong: Equipment, Computers.
Answer to Question 1.8A BA 1
Fixtures 3,200 + Van 4,750 + Inventory 2,340 + Bank 520 + Cash 100 = Total Assets 10,910.
Loan 5,000 + Accounts payable 1,910 + Capital (difference) 4,000.
Answer to Question 1.10A BA 1
G Cook
Balance sheet as at 30 June 2019
Non-current assets
Equipment 9,720
Current assets
Inventory 6,430
Accounts receivable 9,280
Cash at bank 410
16,120
Less Current liabilities
Accounts payable (8,380)
17,460
Capital 17,460
8
© Pearson Education Limited 2019
, Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual
Answer to Question 1.12A BA 1
Assets Liabilities Capital
(a) +Van +Accounts payable
(b) −Cash −Loan from F Duff
(c) +Inventory
−Bank
(d) +Cash +Capital
(e) +Inventory
−Accounts receivable
(f ) +Inventory +Accounts payable
(g) −Cash −Capital
(h) −Bank −Accounts payable
Answer to Question 1.14A BA 1
J Hill
Balance Sheet as at 7 December 2019
Non-current assets
Equipment 6,310
Motor Vehicle 7,300
13,610
Current assets
Inventory 8,480
Accounts receivable 3,320
Bank 9,510
Cash 485
21,795
35,405
Current liabilities
Accounts payable 1,760
33,645
Capital 33,645
Answer to Question 2.11A BA 1
Debited Credited Debited Credited
(a) Trailer Cash (b) J Tough Bank
(c) Loan from W Small Cash (d) Cash Trailer
(e) Office equipment Dexter Ltd (f) Cash T Walls
(g) Bank L Tait (h) Bank Capital
(i) Cash Loan from F Burns (j) J Fife Cash
9
© Pearson Education Limited 2019
, Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual
Answer to Question 2.14A BA 1
Bank Cash
(1) Capital 16,000 (2) Van 6,400 (12) Bank 180 (15) Office fixtures 120
(25) Cash 400 (12) Cash 180 (21) Loan: Berry 500 (25) Bank 400
(19) Carton Cars 7,100
(30) Office fixtures 480 Vans
(2) Bank 6,400
Office Fixtures (8) Carton Cars 7,100
(5) Old Ltd 900
(15) Cash 120 Old Ltd
(30) Bank 480 (5) Office fixtures 900
Capital Carton Cars
(1) Bank 16,000 (19) Bank 7,100 (8) Van 7,100
Loan from Berry
(21) Cash 500
Answer to Question 2.15A BA 1
Bank Cash
(1) Capital 18,000 (8) Cash 400 (1) Capital 1,500 (3) Computer 1,200
(2) Loan Fox 4,000 (15) Loan Fox 1,000 (8) Bank 400 (24) Loan Fox 500
(17) Drop 840
Computer
Loan: T Fox (3) Cash 1,200
(15) Bank 1,000 (2) Bank 4,000
(24) Cash 500
Drop Ltd
(17) Bank 840 (5) Display stands 840
Display Stands
(5) Drop 840
P Blake
(31) Printer 400
Capital Printer
(1) Cash 1,500 (31) P Blake 400
(1) Bank 18,000
Answer to Question 3.2A BA 1
Debited Credited Debited Credited
(a) Purchases B Cowan (b) Returns in L Keith
(c) C Riddle Filing cabs (d) Purchases Cash
(e) Lorry M Davis Ltd (f) J Hicks Returns Out
(g) Bank M Peters (h) Purchases Bank
(i) F Toms Bank (j) S Mulligan Sales
10
© Pearson Education Limited 2019
Answers
Note: To save time and space, the months are omitted in the Ledger accounts which follow. The day of the
month is shown in brackets.
Answer to Question 1.2A BA 1
(a) 49,000 (b) 75,100 (c) 65,800
(d) 48,100 (e) 81,300 (f) 85,900
Answer to Question 1.4A BA 1
(a) Asset (f) Asset
(b) Asset (g) Liability
(c) Liability (h) Liability
(d) Asset (i) Asset
(e) Asset
Answer to Question 1.6A BA 1
Assets List Wrong: Accounts payable, Capital.
Liabilities List Wrong: Equipment, Computers.
Answer to Question 1.8A BA 1
Fixtures 3,200 + Van 4,750 + Inventory 2,340 + Bank 520 + Cash 100 = Total Assets 10,910.
Loan 5,000 + Accounts payable 1,910 + Capital (difference) 4,000.
Answer to Question 1.10A BA 1
G Cook
Balance sheet as at 30 June 2019
Non-current assets
Equipment 9,720
Current assets
Inventory 6,430
Accounts receivable 9,280
Cash at bank 410
16,120
Less Current liabilities
Accounts payable (8,380)
17,460
Capital 17,460
8
© Pearson Education Limited 2019
, Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual
Answer to Question 1.12A BA 1
Assets Liabilities Capital
(a) +Van +Accounts payable
(b) −Cash −Loan from F Duff
(c) +Inventory
−Bank
(d) +Cash +Capital
(e) +Inventory
−Accounts receivable
(f ) +Inventory +Accounts payable
(g) −Cash −Capital
(h) −Bank −Accounts payable
Answer to Question 1.14A BA 1
J Hill
Balance Sheet as at 7 December 2019
Non-current assets
Equipment 6,310
Motor Vehicle 7,300
13,610
Current assets
Inventory 8,480
Accounts receivable 3,320
Bank 9,510
Cash 485
21,795
35,405
Current liabilities
Accounts payable 1,760
33,645
Capital 33,645
Answer to Question 2.11A BA 1
Debited Credited Debited Credited
(a) Trailer Cash (b) J Tough Bank
(c) Loan from W Small Cash (d) Cash Trailer
(e) Office equipment Dexter Ltd (f) Cash T Walls
(g) Bank L Tait (h) Bank Capital
(i) Cash Loan from F Burns (j) J Fife Cash
9
© Pearson Education Limited 2019
, Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual
Answer to Question 2.14A BA 1
Bank Cash
(1) Capital 16,000 (2) Van 6,400 (12) Bank 180 (15) Office fixtures 120
(25) Cash 400 (12) Cash 180 (21) Loan: Berry 500 (25) Bank 400
(19) Carton Cars 7,100
(30) Office fixtures 480 Vans
(2) Bank 6,400
Office Fixtures (8) Carton Cars 7,100
(5) Old Ltd 900
(15) Cash 120 Old Ltd
(30) Bank 480 (5) Office fixtures 900
Capital Carton Cars
(1) Bank 16,000 (19) Bank 7,100 (8) Van 7,100
Loan from Berry
(21) Cash 500
Answer to Question 2.15A BA 1
Bank Cash
(1) Capital 18,000 (8) Cash 400 (1) Capital 1,500 (3) Computer 1,200
(2) Loan Fox 4,000 (15) Loan Fox 1,000 (8) Bank 400 (24) Loan Fox 500
(17) Drop 840
Computer
Loan: T Fox (3) Cash 1,200
(15) Bank 1,000 (2) Bank 4,000
(24) Cash 500
Drop Ltd
(17) Bank 840 (5) Display stands 840
Display Stands
(5) Drop 840
P Blake
(31) Printer 400
Capital Printer
(1) Cash 1,500 (31) P Blake 400
(1) Bank 18,000
Answer to Question 3.2A BA 1
Debited Credited Debited Credited
(a) Purchases B Cowan (b) Returns in L Keith
(c) C Riddle Filing cabs (d) Purchases Cash
(e) Lorry M Davis Ltd (f) J Hicks Returns Out
(g) Bank M Peters (h) Purchases Bank
(i) F Toms Bank (j) S Mulligan Sales
10
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