SO L UTI O N S M AN UAL
m m m
Frank Wood’s m
Business Accounting m m
1&2 m m
EL EVEN T H EDITION m m
Frank Wood BSc(Econ), FCA
m m m m
and
Alan Sangster BA, MSc, CertTESOL, CA
m m m m m
ISBNm978-0-273-71824-6
©mPearsonmEducationmLimitedm2008
Lecturersmadopting mthemmainmtex tmarempermittedmtomdownloa
dmandmphotocopym thismmanualmasm required.
,Pearson m Education m Limited
Edin bu rgh mGate mHarl
ow
Esse x mCM20 m2JEmEn gl
an d
andmAssociatedmCompaniesmaroundmthemworld
Visit musmonmthemWorldmWidemWebmat
www.pe arso n e d.co .u k
Eleventh medition m publishedmin m2008
©mPe arso n mEdu catio n mLimite d m2008
Th e mrigh ts mo fmFran k mWo o d man d mAlan mSan gste rmto mbe mide n tifie d
as mau th o rs mofmth is mWo rk mh ave mbe enmasserte dmbymth e mmin macco rdanc
e mwith mth e mCo pyrigh t,mDe sign s man d mPate n ts mActm1988 .
Allmrigh ts mre se rve d.mPe rmissio n mis mh e re bymgive n mfo rmth e mmate rialmin mth is mpu bl
icatio n mto mbe mre pro duce dmfo rmOHPmtran sparencie s mandmstu dentmh an do u ts,mwit
h o utmexpress mpermissionmofmth emPublishers,mfo rmedu catio n almpu rpo se s mo n ly.
In mallmo th e rmcase s,mno mpartmo fm th is mpu blicatio n mmaymbe mreprodu ced,msto
re d min ma mre trie valmsyste m,mo rmtran smitte d min man ym fo rmmo rmbyman ymme an s
,me le ctron ic,mme chan ical,mpho to copying,mre co rding,mo rmo the rwise mwithou t
me ith e rmth e mprio r
writte n mpe rmission mo fmth e mPu blishe rs mo rma mlicen ce mpe rmittin g mrestricte d mcop
yin g min mthe mUn ited mKin gdo mmissued mbym th e mCopyrigh tmLice nsing mAgen cymLt
d,
Saffro n mHo u se ,m6 m–
10 mKirbymStre e t,mLo n do n mECIN m8TS.mISBNm978-0-273-
71824-6
10m 9m 8m 7m 6m 5m 4m 3m 2m 1
11m 10m 09m 08
Prin te d min mGre atmBritain
,Contents
Preface iv
Partm1 Business mAccounting m1 1
Students m andm exami natio nmsuccess 3
Answers 6
Partm2 Business mAccounting m2 93
Answers 95
, Preface
This msolutions mmanual mcontains manswers mtomall mthemquestions mnotmalready mansweredminmBusinessm Accoun
tingm 1m andmBusinessm Accounting m 2.mItmcanmbemseenmthatmtheremaremamconsiderabl emnumbermofmquestions mi
nmbothmtext-mbooks. mAboutmone-
halfmofmthesemhavemthemans wers matmthembackmofmthemrelev antmtextbook, mwhilemthemremai ndermofmthemans
wers maremcontainedminmthis mmanual.
Themresultmofmthis mismtomgivemamhighmdegreemofmflexibilityminmthemusemofmthemtextbooks. mTomillustratemthe
mcontents mofmeachm chapter, mthem ques tions mcanmbem us edmwhichmhavem answers minmthemtextbook. mAny mstude
nts mwhomaremabs entmcanmbemtoldmwhatmthey mhavemmissedmandmcanmlookmupmthemanswers mthemselves. mStu
dents mwhomarrivemlatemonmthemcoursemcanm alsombemtoldmwhatmworkmtomdomandmthey mcanmcheckmthei rmown
mprogress magainstmthemanswers mas mgiven. mHowever, mquitemobviously mwork mmustmbemset, meitherm inmclass mo
rmformhomework, mformwhichmanswers maremnotmav ailablemtomstudents. mThis mmanual mcanmthereforembemused
mtomcheck msuchmwork.
Whilstmevery mendeavourmhas mbeenmmademtomshowmworkings mquitemfully, mitmmustmbemappreciatedmthatmth
eremaremoftenmdifferentmways mofmgettingmtomthemsamemanswer. mThis mmanual mwouldmbemunduly mlengthy man
dmcomplicatedmifmevery mversionmofmarrivingmatmthemanswermweremtombemshown. mThemmethods mchosenmare
mthereforemthosemjudgedmtombemthembestmfrom m amteachingmpointm ofmview.
Frankm Woodm andm Alanm Sangster
Bymwritingmonmletterheaded mpapermofmtheminstitutionmwheremyoumteach,mgivingmdetailsmofmthemcoursemf
ormwhichmyoumusemBusinessmAccountingm1mormBusinessmAccountingm2mwithmyourmclasses,myoumcanmobtai
nmcomplimentarymcopiesmofmthismmanual.mThismmanualmis mnotmavailablemformstudents,mnormismitmin man
ymwaymavailablemformsale mtomthemgeneralmpublic.mItmismalsomavailablemonmthemlecturer’smpassword-
protected msectionmofmthemFrank mWoodmwebsitematmwww.pearsoned.co.ukm/wood
m m m
Frank Wood’s m
Business Accounting m m
1&2 m m
EL EVEN T H EDITION m m
Frank Wood BSc(Econ), FCA
m m m m
and
Alan Sangster BA, MSc, CertTESOL, CA
m m m m m
ISBNm978-0-273-71824-6
©mPearsonmEducationmLimitedm2008
Lecturersmadopting mthemmainmtex tmarempermittedmtomdownloa
dmandmphotocopym thismmanualmasm required.
,Pearson m Education m Limited
Edin bu rgh mGate mHarl
ow
Esse x mCM20 m2JEmEn gl
an d
andmAssociatedmCompaniesmaroundmthemworld
Visit musmonmthemWorldmWidemWebmat
www.pe arso n e d.co .u k
Eleventh medition m publishedmin m2008
©mPe arso n mEdu catio n mLimite d m2008
Th e mrigh ts mo fmFran k mWo o d man d mAlan mSan gste rmto mbe mide n tifie d
as mau th o rs mofmth is mWo rk mh ave mbe enmasserte dmbymth e mmin macco rdanc
e mwith mth e mCo pyrigh t,mDe sign s man d mPate n ts mActm1988 .
Allmrigh ts mre se rve d.mPe rmissio n mis mh e re bymgive n mfo rmth e mmate rialmin mth is mpu bl
icatio n mto mbe mre pro duce dmfo rmOHPmtran sparencie s mandmstu dentmh an do u ts,mwit
h o utmexpress mpermissionmofmth emPublishers,mfo rmedu catio n almpu rpo se s mo n ly.
In mallmo th e rmcase s,mno mpartmo fm th is mpu blicatio n mmaymbe mreprodu ced,msto
re d min ma mre trie valmsyste m,mo rmtran smitte d min man ym fo rmmo rmbyman ymme an s
,me le ctron ic,mme chan ical,mpho to copying,mre co rding,mo rmo the rwise mwithou t
me ith e rmth e mprio r
writte n mpe rmission mo fmth e mPu blishe rs mo rma mlicen ce mpe rmittin g mrestricte d mcop
yin g min mthe mUn ited mKin gdo mmissued mbym th e mCopyrigh tmLice nsing mAgen cymLt
d,
Saffro n mHo u se ,m6 m–
10 mKirbymStre e t,mLo n do n mECIN m8TS.mISBNm978-0-273-
71824-6
10m 9m 8m 7m 6m 5m 4m 3m 2m 1
11m 10m 09m 08
Prin te d min mGre atmBritain
,Contents
Preface iv
Partm1 Business mAccounting m1 1
Students m andm exami natio nmsuccess 3
Answers 6
Partm2 Business mAccounting m2 93
Answers 95
, Preface
This msolutions mmanual mcontains manswers mtomall mthemquestions mnotmalready mansweredminmBusinessm Accoun
tingm 1m andmBusinessm Accounting m 2.mItmcanmbemseenmthatmtheremaremamconsiderabl emnumbermofmquestions mi
nmbothmtext-mbooks. mAboutmone-
halfmofmthesemhavemthemans wers matmthembackmofmthemrelev antmtextbook, mwhilemthemremai ndermofmthemans
wers maremcontainedminmthis mmanual.
Themresultmofmthis mismtomgivemamhighmdegreemofmflexibilityminmthemusemofmthemtextbooks. mTomillustratemthe
mcontents mofmeachm chapter, mthem ques tions mcanmbem us edmwhichmhavem answers minmthemtextbook. mAny mstude
nts mwhomaremabs entmcanmbemtoldmwhatmthey mhavemmissedmandmcanmlookmupmthemanswers mthemselves. mStu
dents mwhomarrivemlatemonmthemcoursemcanm alsombemtoldmwhatmworkmtomdomandmthey mcanmcheckmthei rmown
mprogress magainstmthemanswers mas mgiven. mHowever, mquitemobviously mwork mmustmbemset, meitherm inmclass mo
rmformhomework, mformwhichmanswers maremnotmav ailablemtomstudents. mThis mmanual mcanmthereforembemused
mtomcheck msuchmwork.
Whilstmevery mendeavourmhas mbeenmmademtomshowmworkings mquitemfully, mitmmustmbemappreciatedmthatmth
eremaremoftenmdifferentmways mofmgettingmtomthemsamemanswer. mThis mmanual mwouldmbemunduly mlengthy man
dmcomplicatedmifmevery mversionmofmarrivingmatmthemanswermweremtombemshown. mThemmethods mchosenmare
mthereforemthosemjudgedmtombemthembestmfrom m amteachingmpointm ofmview.
Frankm Woodm andm Alanm Sangster
Bymwritingmonmletterheaded mpapermofmtheminstitutionmwheremyoumteach,mgivingmdetailsmofmthemcoursemf
ormwhichmyoumusemBusinessmAccountingm1mormBusinessmAccountingm2mwithmyourmclasses,myoumcanmobtai
nmcomplimentarymcopiesmofmthismmanual.mThismmanualmis mnotmavailablemformstudents,mnormismitmin man
ymwaymavailablemformsale mtomthemgeneralmpublic.mItmismalsomavailablemonmthemlecturer’smpassword-
protected msectionmofmthemFrank mWoodmwebsitematmwww.pearsoned.co.ukm/wood
