Accounting Skills by Margaret Nicholson (auth.)
By Margaret Nicholson (auth.)
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Allen (£170). 29 Returned goods to I. Allen (£28). 30 Paid cheques toP. Coates (£395); P. Williams (£130). 31 Received £212 by cheque from D. Hall. 6 Enter the following transactions in the personal accounts only; do not write up the other accounts. Balance each personal account at the end of the month and bring down the balance. Apr 1 Bought goods on credit from R. Pearson (£459); S. Dean (£360); L. Gregg (£126); N. Banks (£280). 3 Credit sales toP. Lodge (£240); D. Simons (£120). 5 Goods returned to S.
Bamsdale (£360). 10 Credit purchases: L. Gregg (£326); R. Pearson (£231). 11 Credit sales to D. Simons (£97); J. Watson (£219). 12 Bought goods on credit from N. Banks (£350); S. Dean (£195). 15 Sold goods on credit to J. Watson (£175); R. Sutcliffe (£150); F. McKay (£220); T. Barnsdale (£155). 18 Returned goods to S. Dean (£45); N. Banks (£50). 21 Goods returned to the firm by F. McKay (£20); J. Watson (£25). 23 Paid R. Pearson £459 by cheque. 25 Received £200 in cash from F. McKay. 26 Sold goods on credit toR.
The cash account when balanced off will appear as follows: Cash Account Mar 1 Sales 350 350 Apr 1 Balance b/d -- Mar 2 4 9 15 31 Motor expenses Rent Stationery Wages Balance c/d 35 50 15 70 180 350 180 39 In most flrms the accounts are balanced at the end of each month. The balance carried down, abbreviated as (c/d), is written in the account on the last day of the current month. The balance is brought down (b/d) on the flrst day of the next month. These two balancing entries are a 'double entry'.