Topic C06 The Accounting Cycle Topic Overview p 1

BAFS Learning and Teaching Example As at April 2009

Learning Objectives 1 To reinforce the concept of the double entry accounting system and 2 To reinforce accounting knowledge such as recording transactions in books of

original entry posting entries to ledger accounts and preparing trial balance income statement and balance sheet

Overview of Contents Lesson 1 Double Entry System and Books of Original Entry Lesson 2 Ledgers Lesson 3 Trial Balance and Financial Statements Resources

Topic Overview and Teaching Plan Power Point Presentation Student Worksheet with Answer

Suggested Activity

Practical exercise

Topic Overview Topic BAFS Compulsory Part - Introduction to Accounting

C06 The Accounting Cycle Level S4 Duration 3 lessons (40 minutes per lesson)

Topic C06 The Accounting Cycle Topic Overview p 2

BAFS Learning and Teaching Example As at April 2009

Lesson 1 Theme Double Entry System and Books of Original Entry Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Apply the principles of double entry for the recording of business transactions

and 2 Record transactions in books of original entry Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher introduces the lesson by informing the class that they are going to prepare a set of accounts for Beauty Full Co

PPT2 2 minutes

Part II Content

Teacher reviews the basic steps of the accounting cycle Teacher reviews the double entry accounting system

and goes through the rules of double entry for different types of accounts

Teacher explains the steps of journalising transactions and reviews the six books of original entry (Note Owing to time constraint teacher may skip this part if students are familiar with the concepts or teacher may ask students to review the concepts before the lesson)

PPT3 PPT4-36

PPT37

15 minutes

Activity Practice Set Students are required to open a general journal to

record the assets liabilities and capital of Beauty Full Co

Teacher checks answers with the class

PPT38-40 Student

Worksheet p28-30

7 minutes

Activity Practice Set Students are required to record credit sales

transactions in the sales journal and sales returns in

PPT41-44

Student 7 minutes

Topic C06 The Accounting Cycle Topic Overview p 3

BAFS Learning and Teaching Example As at April 2009

the returns inward journal Teacher checks answers with the class

Worksheet pp31-32

Activity Practice Set Students are required to record credit purchases

transactions in the purchases journal and purchases returns in the returns outwards journal

Teacher checks answers with the class

PPT45-48 Student

Worksheet pp33-34

7 minutes

Part III Conclusion Teacher concludes the lesson by reviewing key points

covered in this lesson

2 minutes

Topic C06 The Accounting Cycle Topic Overview p 4

BAFS Learning and Teaching Example As at April 2009

Lesson 2 Theme Ledgers Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Set up ledger accounts and 2 Post transactions from the books of original entry to the respective ledger

accounts Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher reviews the progress of the accounting process for Beauty Full Co

2 minutes

Part II Content

Activity Practice Set Students are required to record other transactions

in the general journal andor the cash book Teacher checks answers with the class

PPT49-57 Student

Worksheet pp28-30

amp 35

12 minutes

Teacher explains the commonly used ledgers and what they are used for

Activity Practice Set Students are required to set up general ledger

accounts receivable ledger and accounts payable ledger accounts

Students are then required to post entries from the books of original entry to the respective ledger accounts

Teacher checks answers with the class

PPT58-68 Student

Worksheet pp36-51

24 minutes

Part III Conclusion Teacher concludes the session by reviewing the key

points covered in this lesson 2 minutes

Topic C06 The Accounting Cycle Topic Overview p 5

BAFS Learning and Teaching Example As at April 2009

Lesson 3 Theme Trial Balance and Financial Statements Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Balance off ledger accounts at month end 2 Explain what a trial balance is and the uses of it 3 Prepare a trial balance 4 Prepare an income statement and 5 Prepare a balance sheet Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher starts by telling students the uses of trial balance

PPT69 2 minutes

Part II Content

Teacher explains the procedure of preparing a trial balance

Activity Practice Set Students are required to balance off the ledgers

and cash book accounts and prepare the trial balance of Beauty Full Co

Teacher checks answers with the class

PPT70-72 Student

Worksheet p52

15 minutes

Teacher explains what income statement and balance sheet of a company are and shows how they are prepared based on the trial balance

Teacher describes the format of a vertical style income statement

Activity Practice Set Students are required to draw up the income

statement of Beauty Full Co Teacher checks answers with the class

PPT73

PPT74

Student Worksheet

p53 PPT75

10 minutes

Topic C06 The Accounting Cycle Topic Overview p 6

BAFS Learning and Teaching Example As at April 2009

Teacher describes the format of a vertical style balance sheet

Activity Practice Set Students are required to draw up the balance sheet

of Beauty Full Co Teacher checks answers with the class

PPT76

Student Worksheet

p54 PPT77

10 minutes

Part III Conclusion Teacher concludes the session by highlighting the

importance of accounting PPT78 3 minutes

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Topic Overview p 2

BAFS Learning and Teaching Example As at April 2009

Lesson 1 Theme Double Entry System and Books of Original Entry Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Apply the principles of double entry for the recording of business transactions

and 2 Record transactions in books of original entry Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher introduces the lesson by informing the class that they are going to prepare a set of accounts for Beauty Full Co

PPT2 2 minutes

Part II Content

Teacher reviews the basic steps of the accounting cycle Teacher reviews the double entry accounting system

and goes through the rules of double entry for different types of accounts

Teacher explains the steps of journalising transactions and reviews the six books of original entry (Note Owing to time constraint teacher may skip this part if students are familiar with the concepts or teacher may ask students to review the concepts before the lesson)

PPT3 PPT4-36

PPT37

15 minutes

Activity Practice Set Students are required to open a general journal to

record the assets liabilities and capital of Beauty Full Co

Teacher checks answers with the class

PPT38-40 Student

Worksheet p28-30

7 minutes

Activity Practice Set Students are required to record credit sales

transactions in the sales journal and sales returns in

PPT41-44

Student 7 minutes

Topic C06 The Accounting Cycle Topic Overview p 3

BAFS Learning and Teaching Example As at April 2009

the returns inward journal Teacher checks answers with the class

Worksheet pp31-32

Activity Practice Set Students are required to record credit purchases

transactions in the purchases journal and purchases returns in the returns outwards journal

Teacher checks answers with the class

PPT45-48 Student

Worksheet pp33-34

7 minutes

Part III Conclusion Teacher concludes the lesson by reviewing key points

covered in this lesson

2 minutes

Topic C06 The Accounting Cycle Topic Overview p 4

BAFS Learning and Teaching Example As at April 2009

Lesson 2 Theme Ledgers Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Set up ledger accounts and 2 Post transactions from the books of original entry to the respective ledger

accounts Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher reviews the progress of the accounting process for Beauty Full Co

2 minutes

Part II Content

Activity Practice Set Students are required to record other transactions

in the general journal andor the cash book Teacher checks answers with the class

PPT49-57 Student

Worksheet pp28-30

amp 35

12 minutes

Teacher explains the commonly used ledgers and what they are used for

Activity Practice Set Students are required to set up general ledger

accounts receivable ledger and accounts payable ledger accounts

Students are then required to post entries from the books of original entry to the respective ledger accounts

Teacher checks answers with the class

PPT58-68 Student

Worksheet pp36-51

24 minutes

Part III Conclusion Teacher concludes the session by reviewing the key

points covered in this lesson 2 minutes

Topic C06 The Accounting Cycle Topic Overview p 5

BAFS Learning and Teaching Example As at April 2009

Lesson 3 Theme Trial Balance and Financial Statements Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Balance off ledger accounts at month end 2 Explain what a trial balance is and the uses of it 3 Prepare a trial balance 4 Prepare an income statement and 5 Prepare a balance sheet Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher starts by telling students the uses of trial balance

PPT69 2 minutes

Part II Content

Teacher explains the procedure of preparing a trial balance

Activity Practice Set Students are required to balance off the ledgers

and cash book accounts and prepare the trial balance of Beauty Full Co

Teacher checks answers with the class

PPT70-72 Student

Worksheet p52

15 minutes

Teacher explains what income statement and balance sheet of a company are and shows how they are prepared based on the trial balance

Teacher describes the format of a vertical style income statement

Activity Practice Set Students are required to draw up the income

statement of Beauty Full Co Teacher checks answers with the class

PPT73

PPT74

Student Worksheet

p53 PPT75

10 minutes

Topic C06 The Accounting Cycle Topic Overview p 6

BAFS Learning and Teaching Example As at April 2009

Teacher describes the format of a vertical style balance sheet

Activity Practice Set Students are required to draw up the balance sheet

of Beauty Full Co Teacher checks answers with the class

PPT76

Student Worksheet

p54 PPT77

10 minutes

Part III Conclusion Teacher concludes the session by highlighting the

importance of accounting PPT78 3 minutes

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Topic Overview p 3

BAFS Learning and Teaching Example As at April 2009

the returns inward journal Teacher checks answers with the class

Worksheet pp31-32

Activity Practice Set Students are required to record credit purchases

transactions in the purchases journal and purchases returns in the returns outwards journal

Teacher checks answers with the class

PPT45-48 Student

Worksheet pp33-34

7 minutes

Part III Conclusion Teacher concludes the lesson by reviewing key points

covered in this lesson

2 minutes

Topic C06 The Accounting Cycle Topic Overview p 4

BAFS Learning and Teaching Example As at April 2009

Lesson 2 Theme Ledgers Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Set up ledger accounts and 2 Post transactions from the books of original entry to the respective ledger

accounts Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher reviews the progress of the accounting process for Beauty Full Co

2 minutes

Part II Content

Activity Practice Set Students are required to record other transactions

in the general journal andor the cash book Teacher checks answers with the class

PPT49-57 Student

Worksheet pp28-30

amp 35

12 minutes

Teacher explains the commonly used ledgers and what they are used for

Activity Practice Set Students are required to set up general ledger

accounts receivable ledger and accounts payable ledger accounts

Students are then required to post entries from the books of original entry to the respective ledger accounts

Teacher checks answers with the class

PPT58-68 Student

Worksheet pp36-51

24 minutes

Part III Conclusion Teacher concludes the session by reviewing the key

points covered in this lesson 2 minutes

Topic C06 The Accounting Cycle Topic Overview p 5

BAFS Learning and Teaching Example As at April 2009

Lesson 3 Theme Trial Balance and Financial Statements Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Balance off ledger accounts at month end 2 Explain what a trial balance is and the uses of it 3 Prepare a trial balance 4 Prepare an income statement and 5 Prepare a balance sheet Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher starts by telling students the uses of trial balance

PPT69 2 minutes

Part II Content

Teacher explains the procedure of preparing a trial balance

Activity Practice Set Students are required to balance off the ledgers

and cash book accounts and prepare the trial balance of Beauty Full Co

Teacher checks answers with the class

PPT70-72 Student

Worksheet p52

15 minutes

Teacher explains what income statement and balance sheet of a company are and shows how they are prepared based on the trial balance

Teacher describes the format of a vertical style income statement

Activity Practice Set Students are required to draw up the income

statement of Beauty Full Co Teacher checks answers with the class

PPT73

PPT74

Student Worksheet

p53 PPT75

10 minutes

Topic C06 The Accounting Cycle Topic Overview p 6

BAFS Learning and Teaching Example As at April 2009

Teacher describes the format of a vertical style balance sheet

Activity Practice Set Students are required to draw up the balance sheet

of Beauty Full Co Teacher checks answers with the class

PPT76

Student Worksheet

p54 PPT77

10 minutes

Part III Conclusion Teacher concludes the session by highlighting the

importance of accounting PPT78 3 minutes

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Topic Overview p 4

BAFS Learning and Teaching Example As at April 2009

Lesson 2 Theme Ledgers Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Set up ledger accounts and 2 Post transactions from the books of original entry to the respective ledger

accounts Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher reviews the progress of the accounting process for Beauty Full Co

2 minutes

Part II Content

Activity Practice Set Students are required to record other transactions

in the general journal andor the cash book Teacher checks answers with the class

PPT49-57 Student

Worksheet pp28-30

amp 35

12 minutes

Teacher explains the commonly used ledgers and what they are used for

Activity Practice Set Students are required to set up general ledger

accounts receivable ledger and accounts payable ledger accounts

Students are then required to post entries from the books of original entry to the respective ledger accounts

Teacher checks answers with the class

PPT58-68 Student

Worksheet pp36-51

24 minutes

Part III Conclusion Teacher concludes the session by reviewing the key

points covered in this lesson 2 minutes

Topic C06 The Accounting Cycle Topic Overview p 5

BAFS Learning and Teaching Example As at April 2009

Lesson 3 Theme Trial Balance and Financial Statements Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Balance off ledger accounts at month end 2 Explain what a trial balance is and the uses of it 3 Prepare a trial balance 4 Prepare an income statement and 5 Prepare a balance sheet Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher starts by telling students the uses of trial balance

PPT69 2 minutes

Part II Content

Teacher explains the procedure of preparing a trial balance

Activity Practice Set Students are required to balance off the ledgers

and cash book accounts and prepare the trial balance of Beauty Full Co

Teacher checks answers with the class

PPT70-72 Student

Worksheet p52

15 minutes

Teacher explains what income statement and balance sheet of a company are and shows how they are prepared based on the trial balance

Teacher describes the format of a vertical style income statement

Activity Practice Set Students are required to draw up the income

statement of Beauty Full Co Teacher checks answers with the class

PPT73

PPT74

Student Worksheet

p53 PPT75

10 minutes

Topic C06 The Accounting Cycle Topic Overview p 6

BAFS Learning and Teaching Example As at April 2009

Teacher describes the format of a vertical style balance sheet

Activity Practice Set Students are required to draw up the balance sheet

of Beauty Full Co Teacher checks answers with the class

PPT76

Student Worksheet

p54 PPT77

10 minutes

Part III Conclusion Teacher concludes the session by highlighting the

importance of accounting PPT78 3 minutes

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Topic Overview p 5

BAFS Learning and Teaching Example As at April 2009

Lesson 3 Theme Trial Balance and Financial Statements Duration 40 minutes Expected Learning Outcomes Upon completion of this lesson students will be able to 1 Balance off ledger accounts at month end 2 Explain what a trial balance is and the uses of it 3 Prepare a trial balance 4 Prepare an income statement and 5 Prepare a balance sheet Teaching Sequence and Time Allocation

Activities Reference Time

AllocationPart I Introduction

Teacher starts by telling students the uses of trial balance

PPT69 2 minutes

Part II Content

Teacher explains the procedure of preparing a trial balance

Activity Practice Set Students are required to balance off the ledgers

and cash book accounts and prepare the trial balance of Beauty Full Co

Teacher checks answers with the class

PPT70-72 Student

Worksheet p52

15 minutes

Teacher explains what income statement and balance sheet of a company are and shows how they are prepared based on the trial balance

Teacher describes the format of a vertical style income statement

Activity Practice Set Students are required to draw up the income

statement of Beauty Full Co Teacher checks answers with the class

PPT73

PPT74

Student Worksheet

p53 PPT75

10 minutes

Topic C06 The Accounting Cycle Topic Overview p 6

BAFS Learning and Teaching Example As at April 2009

Teacher describes the format of a vertical style balance sheet

Activity Practice Set Students are required to draw up the balance sheet

of Beauty Full Co Teacher checks answers with the class

PPT76

Student Worksheet

p54 PPT77

10 minutes

Part III Conclusion Teacher concludes the session by highlighting the

importance of accounting PPT78 3 minutes

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Topic Overview p 6

BAFS Learning and Teaching Example As at April 2009

Teacher describes the format of a vertical style balance sheet

Activity Practice Set Students are required to draw up the balance sheet

of Beauty Full Co Teacher checks answers with the class

PPT76

Student Worksheet

p54 PPT77

10 minutes

Part III Conclusion Teacher concludes the session by highlighting the

importance of accounting PPT78 3 minutes

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

1

1

BAFS Compulsory PartIntroduction to Accounting

Topic C06 The Accounting Cycle

Technology Education SectionCurriculum Development Institute

Education Bureau HKSARGApril 2009

Introduction

This session aims to reinforce studentsrsquo understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship Students will work through different steps in the accounting cycle

Duration

Three 40-minute lessons

Contents

Lesson 1 ndash Double Entry System and Books of Original EntryLesson 2 ndash Ledgers Lesson 3 ndash Trial Balance and Financial Statements

2

Topic C06The Accounting Cycle

2 BAFS Compulsory PartLearning and Teaching Example

Beauty Full CoBeauty Full Co

Lesson 1

Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co The materials are contained in the Student Worksheet Ask students to read the background information of Beauty Full Co on Student Worksheet p2

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

3

Topic C06The Accounting Cycle

3 BAFS Compulsory PartLearning and Teaching Example

The Accounting Cycle

Before moving on to the accounting practice set recap the major steps of the accounting cycle

4

Topic C06The Accounting Cycle

4 BAFS Compulsory PartLearning and Teaching Example

Source Documents

Evidence of transactions includingSales and purchases invoicesDebit and credit notes Bank statementsCopies of cheques issued and recievedCash vouchers

Have students check the practice set of the source documents whichincludes1 Bank statement for the month of July of Year 12 Copy of seven cheques issued by Beauty Full Co3 Copy of four cheques drawn at different banks received and paid by

Beauty Full Co4 Two cash vouchers5 Eight sales invoices6 Seven purchase invoices7 Two credit notes and 8 One debit note

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

5

Topic C06The Accounting Cycle

5 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemAssets Liabilities and Capital

Liabilities

Capital

Assets

Types of accounts

CreditDebit

An increaseA decrease

Accounts payable bank loan etc

CreditDebit

An increaseA decrease

Ownerrsquos capital

DebitCredit

An increaseA decrease

Premises van fixtures stock cash cash in

bank accounts receivable etc

Entry in the account

To recordExamples

Before we move on letrsquos have a quick review on the double entry systemFirstly make sure students are able to identify different types of accounts namely assets capital liabilities stocks revenue or expenses Then explain the rules of double entry for assets capital and liabilitiesSee next 4 slides for examples

6

Topic C06The Accounting Cycle

6 BAFS Compulsory PartLearning and Teaching Example

Example

On July 2 of Year 1 BF Co purchased a van for $50000 in cash

CreditDecreaseAssetCash

DebitIncreaseAssetVan

Entry in the account

Increase decrease

Types of Accounts

Accounts

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

7

Topic C06The Accounting Cycle

7 BAFS Compulsory PartLearning and Teaching Example

Example

Van

Year 1 $July 1 Cash 50000

Cash

Year 1 $July 1 Van 50000

Using T-accounts to illustrate the entries

8

Topic C06The Accounting Cycle

8 BAFS Compulsory PartLearning and Teaching Example

Example

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

BD Ltd

Fixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

9

Topic C06The Accounting Cycle

9 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 15 of Year 1 BF Co bought fixtures for $30000 from BD Ltd on credit

CreditIncreaseLiabilityBD Ltd

DebitIncreaseAssetFixtures

Entry in the account

Increase decrease

Types of Accounts

Accounts

10

Topic C06The Accounting Cycle

10 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

11

Topic C06The Accounting Cycle

11 BAFS Compulsory PartLearning and Teaching Example

Answer

Fixtures

Year 1 $July 15 BD Ltd 30000

Year 1 $July 15 Fixtures 30000

Year 1 $July

Year 1 $July

BD Ltd

12

Topic C06The Accounting Cycle

12 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemStocks

CreditDebit

An increaseA decreaseReturns outwards

DebitCredit

An increaseA decreaseReturns inwards

CreditDebit

An increaseA decreaseSales

DebitCredit

An increaseA decreasePurchases

Entry in the account

To recordTypes of accounts

Explain to the class the rules of double entry for the treatment of stocks See next 8 slides for examples

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

13

Topic C06The Accounting Cycle

13 BAFS Compulsory PartLearning and Teaching Example

Example

On July 8 of Year 1 BF Co sold goods for $10000 to M Chan on credit

CreditIncreaseSalesSales

DebitIncreaseAssetM Chan

Entry in the account

Increase decrease

Types of Accounts

Accounts

14

Topic C06The Accounting Cycle

14 BAFS Compulsory PartLearning and Teaching Example

Example

M ChanYear 1 $July 8 Sales 10000

SalesYear 1 $July 8 M Chan 10000

Using T-accounts to illustrate the entries

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

15

Topic C06The Accounting Cycle

15 BAFS Compulsory PartLearning and Teaching Example

Example

On July 22 of Year 1 M Chan refunded goods he bought for $1000

CreditDecreaseAssetM Chan

DebitIncreaseReturnsInwards

Returns Inwards

Entry in the account

Increase decrease

Types of Accounts

Accounts

16

Topic C06The Accounting Cycle

16 BAFS Compulsory PartLearning and Teaching Example

Example

Returns InwardsYear 1 $July 22 M Chan 1000

M ChanYear 1 $July 22 Returns

Inwards 1000

Using T-accounts to illustrate the entries

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

17

Topic C06The Accounting Cycle

17 BAFS Compulsory PartLearning and Teaching Example

Example

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

F Li

Purchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

18

Topic C06The Accounting Cycle

18 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 6 of Year 1 BF Co purchased goods for $9000 from F Li on credit

CreditIncreaseLiabilityF Li

DebitIncreasePurchasesPurchases

Entry in the account

Increase decrease

Types of Accounts

Accounts

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

19

Topic C06The Accounting Cycle

19 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

20

Topic C06The Accounting Cycle

20 BAFS Compulsory PartLearning and Teaching Example

Purchases

Answer

Year 1 $July 6 F Li 9000

Year 1 $July 6 Purchases 9000

Year 1 $July

Year 1 $July

F Li

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

21

Topic C06The Accounting Cycle

21 BAFS Compulsory PartLearning and Teaching Example

Example

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

Returns

Outwards

F Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for the answer

22

Topic C06The Accounting Cycle

22 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 27 of Year 1 BF Co returned goods previously bought from F Li for $800

CreditIncreaseReturns

outwardsReturns

Outwards

DebitDecreaseLiabilityF Li

Entry in the account

Increase decrease

Types of Accounts

Accounts

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

23

Topic C06The Accounting Cycle

23 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

24

Topic C06The Accounting Cycle

24 BAFS Compulsory PartLearning and Teaching Example

F Li

Answer

Year 1 $July 27 Returns

Outwards 800

Year 1 $July 27 F Li 800

Year 1 $July

Year 1 $July

Returns outwards

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

25

Topic C06The Accounting Cycle

25 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemRevenue and Expenses

Expense

Revenue

Types of Accounts

DebitCredit

An increaseA decrease

Rent government rates motor

expense salary etc

CreditDebit

An increaseA decrease

Commission received etc

Entry in the account

To recordExamples

Explain to the class the rules of double entry for revenue and expenses See next 4 slides for examples

26

Topic C06The Accounting Cycle

26 BAFS Compulsory PartLearning and Teaching Example

Example

On 28 July of Year 1 BF Co paid motor expenses for $3500 by cheque

CreditDecreaseAssetBank

DebitIncreaseExpenseMotor

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

27

Topic C06The Accounting Cycle

27 BAFS Compulsory PartLearning and Teaching Example

Example

Motor ExpensesYear 1 $July 28 Bank 3500

BankYear 1 $July 28 Motor

expenses 3500

Using T-accounts to illustrate the entries

28

Topic C06The Accounting Cycle

28 BAFS Compulsory PartLearning and Teaching Example

Example

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

Cash

Rent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

Ask the class to fill in the blanksSee next slide for answer

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

29

Topic C06The Accounting Cycle

29 BAFS Compulsory PartLearning and Teaching Example

Answer

On July 3 of Year 1 BF Co paid rent expenses for $15300 by cash

CreditDecreaseAssetCash

DebitIncreaseExpenseRent

Expenses

Entry in the account

Increase decrease

Types of Accounts

Accounts

30

Topic C06The Accounting Cycle

30 BAFS Compulsory PartLearning and Teaching Example

Example

Year 1 $July

Year 1 $July

Year 1 $July

Year 1 $July

Ask the class to name the T-accounts and input the correct entriesSee next slide for the answer

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

31

Topic C06The Accounting Cycle

31 BAFS Compulsory PartLearning and Teaching Example

Rent expense

Answer

Year 1 $July 3 Cash 15300

Year 1 $July 3 Rent

Expense 15300

Year 1 $July

Year 1 $July

Cash

32

Topic C06The Accounting Cycle

32 BAFS Compulsory PartLearning and Teaching Example

Double Entry SystemDrawings

DebitCredit

An increaseA decrease

Drawings

Entry in the account

To recordType of Account

Explain the rules of double entry for sole proprietorrsquos drawings See next 4 slides for example

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

33

Topic C06The Accounting Cycle

33 BAFS Compulsory PartLearning and Teaching Example

Example

On July 20 of Year 1 owner of BF Co drew cash for $5000

CreditDecreaseAssetCash

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

34

Topic C06The Accounting Cycle

34 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 20 Cash 5000

CashYear 1 $July 20 Drawings 5000

Using T-accounts to illustrate the entries

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

35

Topic C06The Accounting Cycle

35 BAFS Compulsory PartLearning and Teaching Example

Example

On July 28 of Year 1 owner of BF Co took away goods of $3000

CreditDecreasePurchasesPurchases

DebitIncreaseDrawingsDrawings

Entry in the account

Increase decrease

Types of Accounts

Accounts

36

Topic C06The Accounting Cycle

36 BAFS Compulsory PartLearning and Teaching Example

Example

DrawingsYear 1 $July 28 Purchases 3000

PurchasesYear 1 $July 28 Drawings 3000

Using T-accounts to illustrate the entries

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

37

Topic C06The Accounting Cycle

37 BAFS Compulsory PartLearning and Teaching Example

Journalise Transactions

Transactions are classified and entered into books of original entryBooks of original entry include

Sales journalPurchase journalReturns inwards journalReturns outwards journalCash bookGeneral journal

Review original entry in books and explain how to journalise transactions Transactions are first recorded or journalised according to the original entry in books Original entry credit sales are recorded in the sales journal Credit purchases are recorded in the purchases journal etc These entries then can be posted to respective ledger accounts based on double entry rules

38

Topic C06The Accounting Cycle

38 BAFS Compulsory PartLearning and Teaching Example

Open the Books

Open a general journal to record the assets liabilities and capital of Beauty Full Co based on the background information given

Ask students to open and record the assets liabilities and capital of Beauty Full Co in the general journal See next slide for example

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

39

Topic C06The Accounting Cycle

39 BAFS Compulsory PartLearning and Teaching Example

Example

40

Topic C06The Accounting Cycle

40 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

41

Topic C06The Accounting Cycle

41 BAFS Compulsory PartLearning and Teaching Example

Sales Journals

Record credit sales transactions in the sales journal

Ask students to record credit sales transactions in the sales journal There are eight credit sales transactions with invoices from no 103362 to 103369

42

Topic C06The Accounting Cycle

42 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

43

Topic C06The Accounting Cycle

43 BAFS Compulsory PartLearning and Teaching Example

Returns Inwards Journal

Record the sales returns to the returns inwards journal

Ask students to record the sales returns in the returns inwards journal There are two credit notes evidencing sales returns from Francis Au and Rose Ltd

44

Topic C06The Accounting Cycle

44 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

45

Topic C06The Accounting Cycle

45 BAFS Compulsory PartLearning and Teaching Example

Purchase Journal

Record credit purchases transactions in the purchases journal

Ask students to record credit purchases transactions in the purchases journal There are six purchase transactions with different suppliers

46

Topic C06The Accounting Cycle

46 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

47

Topic C06The Accounting Cycle

47 BAFS Compulsory PartLearning and Teaching Example

Returns Outwards Journal

Record the purchases returns to the returns outwards journal

Ask students to record the purchases returns in the returns outwards journal A debit note for the purchases returns has been sent to Billy Woo

48

Topic C06The Accounting Cycle

48 BAFS Compulsory PartLearning and Teaching Example

Teacher can invite a volunteer to show hisher entries to the class for checking

End of Lesson 1

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

49

Topic C06The Accounting Cycle

49 BAFS Compulsory PartLearning and Teaching Example

General Journal amp Cash Book

Make use of the bank statement copies of cheques issued and received cash vouchers and invoice and record the respective transactions in the general journal and cash book

Lesson 2

Ask the class to record transactions other than sales returns inwards purchases and returns outwards in the general journal or the cash book based on the information from the bank statement copies of cheques cash vouchers and invoicesSee next 4 slides for examples

50

Topic C06The Accounting Cycle

50 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

To record anincrease in expenseentry made in the debit side

To record a decrease in asset (bank balance)entry made in the credit side

Show how to record the rent payment in the general journal and the cash book (see next slide)

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

51

Topic C06The Accounting Cycle

51 BAFS Compulsory PartLearning and Teaching Example

Example ndash Rent Payment

Also record the payment by cheque on the right-handside (credit) of the cash book

52

Topic C06The Accounting Cycle

52 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

5 cash discount if paidwithin 60 days

Show how to record a debtor repayment in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for sales if paid within 60 days Check the answers with the class

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

53

Topic C06The Accounting Cycle

53 BAFS Compulsory PartLearning and Teaching Example

Example ndash Debtor Repayment

Entry made in the cash book

54

Topic C06The Accounting Cycle

54 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

5 cash discount if paidwithin 60 days

Show how to record a payment to creditor in the general journal and cash book (see next slide)Tell students to be careful with the handling of the 5 cash discount for purchases if paid within 60 days Check the answers with the class

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

55

Topic C06The Accounting Cycle

55 BAFS Compulsory PartLearning and Teaching Example

Example ndash Creditor Settlement

Entry made in the cash book

56

Topic C06The Accounting Cycle

56 BAFS Compulsory PartLearning and Teaching Example

Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

57

Topic C06The Accounting Cycle

57 BAFS Compulsory PartLearning and Teaching Example

58

Topic C06The Accounting Cycle

58 BAFS Compulsory PartLearning and Teaching Example

Post Entries to Ledger Accounts

Set up the following ledger accounts for Beauty Full Co

General ledgerAccounts receivable ledgerAccounts payable ledger

Ask students to set up ledger accounts for Beauty Full Co including the general accounts receivable and accounts payable ledgers Based on the journal entries completed earlier ask students to post entries to the respective ledger accountsSee following slides for examples

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

59

Topic C06The Accounting Cycle

59 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Example of posting the entry of premises from the general journal to the premises account in the general ledger

60

Topic C06The Accounting Cycle

60 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

61

Topic C06The Accounting Cycle

61 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account

62

Topic C06The Accounting Cycle

62 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to General Ledger

Posted tocash book

Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger Note that the entry in the cash book should have been input already

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

63

Topic C06The Accounting Cycle

63 BAFS Compulsory PartLearning and Teaching Example

Examplendash Posting to General Ledger

①

Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger The posting to the account receivable ledger is shown on the next slide

64

Topic C06The Accounting Cycle

64 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

②

Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

65

Topic C06The Accounting Cycle

65 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Receivable Ledger

Post to cash book

Post to cash salesdiscount account

Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account Note that the other two postings to cash book and cash sales discount account are not shown here

66

Topic C06The Accounting Cycle

66 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

①

Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account The posting to the account payable ledger is shown on the next slide

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

67

Topic C06The Accounting Cycle

67 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

②

Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account

68

Topic C06The Accounting Cycle

68 BAFS Compulsory PartLearning and Teaching Example

Example ndash Posting to Accounts Payable Ledger

Post to cash book

Post to cash purchasesdiscount account

Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account Note that the other two postings to cash book and cash purchases discount account are not shown here

End of Lesson 2

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

69

Topic C06The Accounting Cycle

69 BAFS Compulsory PartLearning and Teaching Example

Uses of Trial Balance

Checking the accuracy of double entry recordsUnder the double entry system total debit balances and total credit balances are equal If they are not equal it means error(s) have been madeThere could still be errors even if trial balance balances

Used as a basis for preparing the income statement and the balance sheet

Lesson 3

Explain the uses of trial balance Point out that even the trial balance balances there could still be errors For example $12000 was recorded as $1200 on both debit and credit entries correction should be made if errors are found

70

Topic C06The Accounting Cycle

70 BAFS Compulsory PartLearning and Teaching Example

Steps to Prepare Trial Balance

Balance off all the ledger accounts and the cash bookList all balances either debit or credit of all accounts in the trial balance separatelyAdd up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal Check for errors if they are not equal

Ask students to balance off all the ledger accounts and the cash book write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example) Then add up all the debit and credit balances correspondingly and check whether the totals even out Ask them to check for errors if they are not equal

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

71

Topic C06The Accounting Cycle

71 BAFS Compulsory PartLearning and Teaching Example

Balance Off an AccountInput $400000 to thecredit side of the Premises account tobalance it off The balance is then transfer to next month

Example of balancing off the premises account and the posting of it to the trial balance

72

Topic C06The Accounting Cycle

72 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

73

Topic C06The Accounting Cycle

73 BAFS Compulsory PartLearning and Teaching Example

Prepare Financial Statements

Two most important financial statements are

Income statementBalance sheet

Remind students that based on the trial balance the two most important financial statements ie income statement and balance sheet can be prepared

74

Topic C06The Accounting Cycle

74 BAFS Compulsory PartLearning and Teaching Example

Income Statement

SalesSalesSales

Cost of good soldCost of good soldCost of good sold

Gross profitGross profitGross profit

Other incomesOther incomesOther incomes

ExpensesExpensesExpenses

Net ProfitNet ProfitNet Profit

LessLess

==

AddAdd

LessLess

==

List all expensesList all expenses

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Calculate from openingstock purchase cash Purchase discount Returns outwards amp closing stock

Less cash sales discount amp returns inwards

Less cash sales discount amp returns inwards

Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year 1

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

75

Topic C06The Accounting Cycle

75 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

76

Topic C06The Accounting Cycle

76 BAFS Compulsory PartLearning and Teaching Example

Balance Sheet

Fixed AssetsFixed AssetsFixed Assets

Current AssetsCurrent AssetsCurrent Assets

Less Current LiabilitiesLess Current LiabilitiesLess Current LiabilitiesNet Current

AssetsNet CurrentNet Current

AssetsAssets

Long-term LiabilitiesLongLong--term Liabilitiesterm Liabilities

Financed byCapital

Financed byFinanced byCapital Capital

++

--

==

Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year 1

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

77

Topic C06The Accounting Cycle

77 BAFS Compulsory PartLearning and Teaching Example

Check the answers with the class

78

Topic C06The Accounting Cycle

78 BAFS Compulsory PartLearning and Teaching Example

Conclusions

Accounting helps us toRecord classify and summarise dataCommunicate informationCalculate profit and lossHave a better control of the financial resources Enhance effective operations

Conclude the lesson by highlighting the importance and significance of accounting

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

79

Topic C06The Accounting Cycle

79 BAFS Compulsory PartLearning and Teaching Example

The End

End of Lesson 3

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 1

BAFS Learning and Teaching Example As at April 2009

BAFS Compulsory Part - Introduction to Accounting Topic C06 The Accounting Cycle

BBeeaauuttyy FFuullll CCoo

An Accounting

Practice Set

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 2

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Background Mr Bobby Fu a sole proprietor started his own business ldquoBeauty Full Cordquo on June 1 of Year 1 He has little knowledge of accounting His accounting records are kept on a single entry basis The balances as at July 1 of Year 1 are extracted as follows Assets Premises $400000 van $90000 fixtures $120000 stock $257800 Bank $250800 cash in hand $9000 Debtors Alan Fung $8000 Candy Chan $36000 Liabilities Creditors Thomas Liu $12000 Mandy Hui $40000 He decides to keep a double entry accounting record starting from July 1 of Year 1 You are required to open the books via the journal to record assets liabilities and capital and then record the daily transactions for the month of July in the books of original entry and the ledgers A trial balance and financial statements need to be prepared as at 31 July of Year 1 Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 3

BAFS Learning and Teaching Example As at April 2009

STATEMENT OF ACCOUNT WITH 基滙銀行有限公司 BIZ BANK LIMITED 月結單

分行 賬戶號碼

Branch Central Account No 012-455-467861-003

Beauty Full Company 日期

Date

摘要

Details

存入金額(CR) 支出金額

Deposit (CR) Withdrawals

港幣結餘

Balance in HK Dollars

Year 1 July

1 Balance brought forward 250800 CR1 801211 3000 247800 CR16 Deposit 7600 CR 255400 CR Deposit 41800 CR 297200 CR Deposit 7600 CR 304800 CR Deposit 15200 CR 320000 CR24 801212 15200 304800 CR 801213 38000 266800 CR 801214 11400 255400 CR 801215 11200 244200 CR 801216 13200 231000 CR 801217 60000 171000 CR 存入 結餘

Deposits 72200 Balance 171000 CR

支出 其他賬戶結餘列入 透支

Withdrawals 152000 Other net balances Overdraft = OD 交來票據收妥作實倘有錯漏或更改地址時請即通知往來存款部主任為荷 E amp O E Local cheques etc Although passed to credit are accepted for collection only and will not be available until cleared Any exception error or change of address should be promptly advised to the officer in change of Current Accounts Department

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 4

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

1 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人

HK dollars 港幣 THREE THOUSAND ONLY BEAUTY FULL CO

801211 012 455 467861 003

Note Rent payment

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人

HK dollars 港幣 FIFTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801212 012 455 467861 003

HK$3000--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 5

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人

HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY BEAUTY FULL CO

801213 012 455 467861 003

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

24 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND FOUR HUNDRED ONLY BEAUTY FULL CO

801214 012 455 467861 003

HK$38000--

HK$11400--

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 6

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人

HK dollars 港幣 ELEVEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801215 012 455 467861 003

Note Paid for salaries

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

30 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人

HK dollars 港幣 THIRTEEN THOUSAND AND TWO HUNDRED ONLY BEAUTY FULL CO

801216 012 455 467861 003

Note Government rates

HK$11200--

HK$13200--

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 7

BAFS Learning and Teaching Example As at April 2009

Biz Bank Limited 基滙銀行有限公司Hong Kong SAR 香港特別行政區

31 July Year 1

Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人

HK dollars 港幣 SIXTY THOUSAND ONLY BEAUTY FULL CO

801217 012 455 467861 003

Note Settlement ndash Purchase of car on credit on 14 July of Year 1

HK$60000--

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 8

BAFS Learning and Teaching Example As at April 2009

Eastern Bank Limited 東方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR ALAN FUNG

704532 001 345 003780 002

Southern Bank Limited 南方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 FORTY ONE THOUSAND amp EIGHT HUNDRED ONLY MISS CANDY CHAN

354622 002 455 132046 008

HK$7600--

HK$41800--

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 9

BAFS Learning and Teaching Example As at April 2009

Western Bank Limited 西方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO 或持票人

HK dollars 港幣 SEVEN THOUSAND amp SIX HUNDRED ONLY MR FRANCIS AU

285546 005 431 265763 007

Northern Bank Limited 北方銀行有限公司Hong Kong SAR 香港特別行政區

167Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co 或持票人

HK dollars 港幣 FIFTEEN THOUSAND amp TWO HUNDRED ONLY ROSE LTD

400055 022 354 467812 006

HK$7600--

HK$15200--

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 10

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103362 Tel 7633 1124 Customer Francis Au Item No Qty Description Unit Price Discount Total

A001

280

Pink Blouse

50

20

$ 11200

Order Total Amount $ 11200

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 11

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 3 July Year 1 Kowloon Invoice No 103363 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

A117

400

Earring

40

25

$ 15600

Order Total Amount $ 15600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 12

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 5 July Year 1 Kowloon Invoice No 103364 Tel 7633 1124 Customer Rose Ltd Item No Qty Description Unit Price Discount Total

B006

490

White Blouse

40

0

$ 19600

Order Total Amount $ 19600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 13

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 6 July Year 1 Kowloon Invoice No 103365 Tel 7633 1124 Customer Lily Man Item No Qty Description Unit Price Discount Total

C007

30

Yellow shirts

320

0

$ 9600

Order Total Amount $ 9600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 14

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103366 Tel 7633 1124 Customer Olivia Pau Item No Qty Description Unit Price Discount Total

B034

590

Suits

40

0

$ 23600

Order Total Amount $ 23600

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 15

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 8 July Year 1 Kowloon Invoice No 103367 Tel 7633 1124 Customer Candy Chan Item No Qty Description Unit Price Discount Total

A115

1000

Red Shoes

100

20

$ 8000

Order Total Amount $ 8000

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 16

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103368 Tel 7633 1124 Customer Una Shum Item No Qty Description Unit Price Discount Total

B034

110

Suits

50

20

$ 4400

Order Total Amount $ 4400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 17

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co SALES INVOICE Rm 1111 24 Tin Tin Road Date 9 July Year 1 Kowloon Invoice No 103369 Tel 7633 1124 Customer Queenie Chiu Item No Qty Description Unit Price Discount Total

D300

268

Necklace

50

0

$ 13400

Order Total Amount $ 13400

Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 18

BAFS Learning and Teaching Example As at April 2009

Thomas Liu 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 2 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Discount Order Unit price Total

100

ldquoRootsrdquo Sandals

20

4810

$ 50

$ 4000

4000 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 19

BAFS Learning and Teaching Example As at April 2009

Ellen Li 80 Kimberley Road Tsimshatsui

Invoice No 19-200 Date 2 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoAnalystrdquo ndash T shirts

20 $

560

$ 11200

11200 Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 20

BAFS Learning and Teaching Example As at April 2009

Denise Hung 7F Kaiser Estate Tokwawan 77 SHENG HEUNG ROAD TOKWAWAN KOWLOON

Invoice 876 5432 Date 2 July Year 1

QUANTITY DESCRIPTION DISCOUNT ORDER PRICEUNIT TOTAL

200

ldquoBarkerrdquo

Ladies Jean

5

4813

$ 40

$ 7600

7600 Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon Terms 5 cash discount if paid within 60 days

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 21

BAFS Learning and Teaching Example As at April 2009

Billy Woo 30 Catherine Street Kowloon

2 July Year 1

INVOICE X374 QUANTITY DESCRIPTION ORDER PRICEUNIT TOTAL

69

1009 Suits

Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Terms 5 cash discount if paid within 60 days

4809

$ 200

$ 13800

13800

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 22

BAFS Learning and Teaching Example As at April 2009

Ellis Wang 30 Ng Fong Street Kwai Chung

Invoice 11700

Date 22 July Year 1

Beauty Full co Rm 1111 24 Tin Tin Road Kowloon Quantity Description Order Unit price Total

400

ldquoCatrdquo Sandals

4821

$ 4450

$ 17800

Terms 5 cash discount if paid within 60 days

17800

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 23

BAFS Learning and Teaching Example As at April 2009

Ocean Co 80 Kimberley Road Tsimshatsui

Invoice No 19-200 22 July Year 1

Customer Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Order Description Quantity Priceunit Total

4910

ldquoCatrdquo ndash T shirts

Terms 5 cash discount if paid within 60 days

360

$ 40

$ 14400

_______ 14400

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 24

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Francis Au 334 Martha Road Kowloon

Credit Note No 401 Per Unit Total

80 Pink Blouses Less 20 trade discount

$ 50 10

$ 4000 800 3200

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 11 July Year 1

To Rose Ltd 1 Lagune Road Kowloon

Credit Note No 33401 Per Unit Total

90 White Blouses

$

40

$

3600 3600

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 25

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co

Rm 1111 24 Tin Tin Road Kowloon 19 July Year 1

To Billy Woo 30 Catherine Street Kowloon

Debit Note No 367401 Per Unit Total

9 Suits

$

200

$

1800

1800

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 26

BAFS Learning and Teaching Example As at April 2009

No 0211-01 Cash Voucher Date 47Year 1 AMOUNT

For what required $ cent

Motor expenses

2600

2600

Signature _______________________________________

Passed by ________________________

No 0212-01 Cash Voucher Date 77Year 1 AMOUNT

For what required $ cent

Drawings

4000

4000

Signature _______________________________________

Passed by ________________________

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 27

BAFS Learning and Teaching Example As at April 2009

Excellent Motors 22 Maple Street Kowloon

Tel 2366 5488 Invoice 22301

Date 14 July Year 1 To Beauty Full Co Rm 1111 24 Tin Tin Road Kowloon

Motor Van

Payment Due Date 31 August Year 1

$

60000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 28

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 29

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 30

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref

Debit Credit

Year 1 $ $ July

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 31

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 32

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number

Account Credited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 33

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 34

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No

Account Debited Post Ref

Amount

Year 1 $ July

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t p 3 5

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July July

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 36

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 37

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 38

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 39

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 40

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 41

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 3

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 42

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 5

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 43

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 44

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 1

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 2

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 45

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 3

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 4

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 46

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 5

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 6

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 47

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 7

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 8

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 48

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 9

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 10

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 49

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 11

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 12

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 50

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 13

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 14

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 51

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Page 15

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

NAME Page 16

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July July

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 52

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 53

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet p 54

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p1

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 1

Date Description Post Ref Debit Credit

Year 1 $ $

July 1 Premises GL01 400000

Van GL02 90000

Fixtures GL03 120000

Inventory GLO4 257800

Accounts Receivable Alan Fung AR01 8000

Candy Chan AR02 36000

Bank CB01 250800

Cash CB01 9000

Account Payable Thomas Liu AP01 12000

Mandy Hui AP02 40000

Capital GL05 1119600

Being assets liabilities and capital as 1171600 1171600

at this date entered to open the books

1 Rent expense GL12 3000

Bank CB01 3000

Being rent expense paid for the month

4 Motor expense GL13 2600

Cash in hand CB01 2600

Being motor expense paid for the month

7 Drawings ndash Bobby Fu GL14 4000

Cash in hand CB01 4000

Being cash drawings made by sole proprietor

14 Van GL03 60000

Other Accounts Payable ndash Excellent Motor AP08 60000

Being motor van acquired on credit

16 Bank CB01 7600

Discount Allowed GL07 400

Account Receivable ndash Alan Fung AR01 8000

Being Accounts Receivable ndash Alan Fung repaid

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p2

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 2

Date Description Post Ref Debit Credit

Year 1 $ $

July 16 Bank CB01 41800

Discount Allowed GL07 2200

Accounts Receivable ndash Candy Chan AR02 44000

Being Accounts Receivable ndash Candy Chan repaid

16 Bank CB01 7600

Discount Allowed GL07 400

Accounts Receivable ndash Francis Au AR03 8000

Being Accounts Receivable ndash Francis Au repaid

16 Bank CB01 15200

Discount Allowed GL07 800

Accounts Receivable ndash Rose Ltd AR05 16000

Being Accounts Receivable ndash Rose Ltd repaid

24 Accounts Payable ndash Thomas Liu AP03 16000

Discount Received GL10 800

Bank CB01 15200

Being Accounts Payable ndash Thomas Liu settled

24 Accounts Payable ndash Mandy Hui AP02 40000

Discount Received GL10 2000

Bank CB01 38000

Being Accounts Payable ndash Mandy Hui settled

24 Accounts Payable ndash Billy Woo AP06 12000

Discount Received GL10 600

Bank CB01 11400

Being Accounts Payable ndash Billy Woo settled

30 Salaries expense GL15 11200

Bank CB01 11200

Being salaries expense paid to Amy Chan for

the month

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p3

BAFS Learning and Teaching Example As at April 2009

GENERAL JOURNAL ndash JULY Page 3

Date Description Post Ref Debit Credit

Year 1 $ $

July 30 Government rates GL16 13200

Bank CB01 13200

Being government rates for the month settled

31 Other Accounts Payable ndash Excellent Motor GL15 60000

Bank CB01 60000

Being motor van payment settled

31 Trading GL04 257800

Stock 257800

Being Opening stock transferred to Trading account

31 Stock GL04 270000

Trading 270000

Being Closing stock transferred to Trading account

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p4

BAFS Learning and Teaching Example As at April 2009

SALES JOURNAL ndash JULY Page 1

Date Invoice Number Account Debited Post

Ref Amount

Year 1 $

July 3 103362 Francis Au GL06 11200

3 103363 Una Shum GL06 15600

5 103364 Rose Ltd GL06 19600

6 103365 Lily Man GL06 9600

8 103366 Olivia Pau GL06 23600

8 103367 Candy Chan GL06 8000

9 103368 Una Shum GL06 4400

9 103369 Queenie Chiu GL06 13400

Total for the month 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p5

BAFS Learning and Teaching Example As at April 2009

RETURNS INWARDS ndash JULY Page 1

Date Invoice Number Account Credited Post

Ref Amount

Year 1 $

July 11 103362 Francis Au GL08 3200

11 103364 Rose Ltd GL08 3600

Total for the month 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p6

BAFS Learning and Teaching Example As at April 2009

PURCHASES JOURNAL ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 2 4810 Thomas Liu GL09 4000

2 4910 Ellen Li GL09 11200

2 4813 Denise Hung GL09 7600

2 4809 Billy Woo GL09 13800

22 4821 Ellis Wang GL09 17800

22 4910 Ocean Co GL09 14400

Total for the month 68800

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p7

BAFS Learning and Teaching Example As at April 2009

RETURNS OUTWARDS ndash JULY Page 1

Date Purchase Order No Account Debited Post

Ref Amount

Year 1 $

July 19 4809 Billy Woo GL10 1800

Total for the month 1800

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 8

BAFS Learning and Teaching Example As at April 2009

CASH BOOK ndash JULY Page 1

Date Description PostRef

Discount Cash Bank Date Description PostRef

Discount Cash Bank

Year 1 $ $ $ Year 1 $ $ $

July 1 Balance bf GJ01 9000 250800 July 1 Rent expense GJ01 3000

16

Accounts Receivable -

Alan Fung GJ01 400 7600

4 Motor expenses GJ01 2600

16

Accounts Receivable -

Candy Chan GJ02 2200 41800

7 Drawings GJ01 4000

16

Accounts Receivable -

Francis Au GJ02 400 7600

24

Accounts Payable -

Thomas Liu GJ02 800 15200

16

Accounts Receivable -

Rose Ltd GJ02 800 15200

24

Accounts Payable -

Mandy Hui GJ02 2000 38000

24

Accounts Payable -

Billy Woo GJ02 600 11400

30 Salaries - Amy Chan GJ02 11200

30 Government rates GJ03 13200

31 Van GJ03 60000

31 Balance cf 2400 171000

3800 9000 323000 3400 9000 323000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

T o p i c C 0 6 T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p 9

BAFS Learning and Teaching Example As at April 2009

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p10

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Alan Fung Page 1

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 8000 July 16 Bank GJ01 7600

Discount Allowed CB1 400

8000 8000

NAME Candy Chan Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 36000 July 16 Bank GJ02 41800

8 Sales SJ01 8000 Discount Allowed CB1 2200

44000 44000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p11

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Francis Au Page 3

ADDRESS 334 Martha Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 11200 July 11 Returns inwards RI01 3200

16 Bank GJ02 7600

Discount

Allowed

CB1 400

11200 11200

NAME Una Shum Page 4

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 3 Sales SJ01 15600 July 31 Balance cd 20000

9 Sales SJ01 4400 ______

20000 20000

Aug 1 Balance bf 20000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p12

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Rose Ltd Page 5

ADDRESS 1 Lagune Road Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 5 Sales SJ01 19600 July 11 Returns Inwards RI01 3600

16 Bank GJ02 15200

Discount

Allowed

CB1 800

19600 19600

NAME Lily Man Page 6

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 6 Sales SJ01 9600 July 31 Balance cd 9600

Aug 1 Balance bf 9600

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p13

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS RECEIVABLE LEDGER

NAME Olivia Pau Page 7

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 8 Sales SJ01 23600 July 31 Balance cd 23600

Aug 1 Balance bf 23600

NAME Queenie Chiu Page 8

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 9 Sales SJ01 13400 July 31 Balance cd 13400

Aug 1 Balance bf 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p14

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Thomas Liu Page 1

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 15200 July 1 Balance bf GJ01 12000

Discount

Receivable

800

2 Purchases PJ01 4000

16000 16000

NAME Mandy Hui Page 2

ADDRESS

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 24 Bank GJ01 38000 July 1 Balance bf Gj01 40000

Discount

Receivable

CB1 2000

40000 40000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p15

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ellen Li Page 3

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 11200 July 3 Purchases PJ01 11200

Aug 1 Balance bf 11200

NAME Denise Hung Page 4

ADDRESS 7F Kaiser Estate 77 Sheung Heung Road Tokawanwan

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 7600 July 2 Purchases PJ01 7600

Aug 1 Balance bf 7600

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p16

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Billy Woo Page 5

ADDRESS 30 Catherine Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 19 Returns Outwards RO01 1800 July 2 Purchases PJ01 13800

24 Bank GJ02 11400

Discount

Receivable

CB1 600

13800 13800

NAME Ellis Wang Page 6

ADDRESS 30 Ng Fong Street Kwai Chung

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 17800 July 22 Purchases PJ01 17800

Aug 1 Balance bf 17800

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p17

BAFS Learning and Teaching Example As at April 2009

ACCOUNTS PAYABLE LEDGER

NAME Ocean Co Page 7

ADDRESS 80 Kimberley Road Tsimshatsui

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Balance cd 14400 July 22 Purchases PJ01 14400

Aug 1 Balance bf 14400

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p18

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Premises Page 1

ACC No 001

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 400000 July 31 Balance cd 400000

Aug 1 Balance bd 400000

NAME Van Page 2

ACC No 002

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bd GJ01 90000 July 31 Balance cd 150000

14 Excellent Motor GJ01 60000

150000 150000

Aug 1 Balance bd 150000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p19

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Fixtures Page 3

ACC No 003

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 120000 July 31 Balance cd 120000

Aug 1 Balance bd 120000

NAME Stock Page 4

ACC No 004

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Balance bf GJ01 257800 July 31 Trading 257800

July 31 Trading 270000 July 31 Balance cd 270000

Aug 1 Balance bd 270000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p20

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Capital Page 5

ACC No 005

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Drawings GL14 4000 July 1 Balance bf GJ01 1119600

31 Balance cd 1129000 31 Net profit for the month 13400

1133000 1133000

Aug 1 Balance bd 1129000

NAME Sales Page 6

ACC No 006

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 105400 July 3 Francis Au SJ01 11200

3 Una Shum SJ01 15600

5 Rose Ltd SJ01 19600

6 Lily Man SJ01 9600

8 Olivia Pau SJ01 23600

8 Candy Chan SJ01 8000

9 Una Shum SJ01 4400

9 Queenie Chiu SJ01 13400

105400 31 105400

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p21

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Discount Allowed Page 7

ACC No 007

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 16 Accounts

Receivable -

AF

GJ01 400

July31 Profit amp loss 3800

16 Accounts

Receivable -

CC

GJ01 2200

16 Accounts

Receivable ndash

FA

GJ01 400

16 Accounts

Receivable -

RL

GJ01 800

3800 3800

NAME Returns inwards Page 8

ACC No 008

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 11 Francis Au RI01 3200 July 31 Trading 6800

11 Rose Ltd RI01 3600

6800 6800

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p22

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Purchases Page 9

ACC No 009

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 2 Thomas Liu PJ01 4000 July 31 Trading 68800

2 Ellen Li PJ01 11200

2 Denise Hung PJ01 7600

2 Billy Woo PJ01 13800

22 Ellis Wang PJ01 17800

22 Ocean Co PJ01 14400

68800 68800

NAME Discount Received Page 10

ACC No 010

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Profit amp loss 3400

July24 Accounts

Payable-TL

GJ02 800

24 Accounts

Payable -MH

GJ02 2000

24 Accounts

Payable-BW

GJ02 600

3400 3400

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p23

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Returns outwards Page 11

ACC No 011

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Trading 1800 July 19 Billy Woo RO01 1800

NAME Rent expense Page 12

ACC No 012

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 1 Bank GJ01 3000 July 31 Profit amp loss 3000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p24

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Motor expenses Page 13

ACC No 013

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ01 2600 July 31 Profit amp loss 2600

NAME Drawings Page 14

ACC No 014

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 7 Drawings GJ02 4000 July 31 Capital 4000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p25

BAFS Learning and Teaching Example As at April 2009

GENERAL LEDGER

NAME Salaries expense Page 15

ACC No 015

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ02 11200 July 31 Profit amp loss 11200

NAME Government rates Page 16

ACC No 016

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 30 Bank GJ03 13200 July 31 Profit amp loss 13200

NAME Excellent Motor Page 8

ADDRESS 22 Maple Street Kowloon

ACC No

Year 1 Explanation Post Ref

$ Year 1 Explanation Post Ref

$

July 31 Bank GJ03 60000 July 14 Van GJ01 60000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p26

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co Trial Balance

as at 31 July Year 1

Balances Acc No Account

Debit Credit $ $

001 Premises 400000 002 Van 150000 003 Fixtures 120000 004 Inventory as at 1 July Year 1 257800 017 Cash in hand 2400 018 Bank 171000

019 Accounts receivable - Accounts Receivable

66600

020 Accounts payable - Accounts Payable

51000

005 Capital 1119600 006 Sales 105400 007 Discount Allowed 3800 008 Returns inwards 6800 009 Purchases 68800 010 Discount Received 3400 011 Returns outwards 1800 012 Rent expense 3000 013 Motor expenses 2600 014 Drawings 4000 015 Salary expense 11200 016 Government rates 13200

1281200 1281200

Note Inventory as at 31 July of Year 1 is $270000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p27

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co INCOME STATEMENT

for the month ended 31 July Year 1

$ $ $

Sales 105400

Less Returns inwards 6800

98600

Less Cost of goods sold

Opening stock 257800

Purchases 68800

Less Returns outwards 1800 67000

324800

Less Closing Stock 270000 54800

Gross profit 43800

Add Revenue

Discount Received 3400

47200

Less Expenses

Discount Allowed 3800

Rent expense 3000

Motor expense 2600

Salaries expense 11200

Government rates 13200 33800

Net profit for the month 13400

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000

Topic C06 The Accounting Cycle Student Worksheet Answer p28

BAFS Learning and Teaching Example As at April 2009

Beauty Full Co BALANCE SHEET as at 31 July Year 1

$ $

Fixed Assets Premises 400000 Van 150000 Fixtures 120000 670000

Current Assets Inventory 270000 Accounts receivable 66600 Bank 2400 Cash in hand 171000

510000

Less Current Liabilities Accounts payable 1000 Net current assets 459000 Less Long-term Liabilities 0 1129000 Financed by Capital as at 1 July Year 1 1119600 Add Net profit for the month 13400 1133000 Less Drawings 4000 1129000