FA Tut 2 Answer Key
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SINGAPORE INSTITUTE OF TECHNOLOGY
BACHELOR OF ACCOUNTANCY WITH HONOURS PROGRAMME
ACC1001 INTRODUCTION TO FINANCIAL ACCOUNTING
(Trimester 1, 01!"
T#t$ri%& ' Re$r)i*+ Tr%*s%ti$*s
#esti$* 1
Ex 3-10 (Extracted from textbook page 133)
“If debits equal credits in a trial balance, you can be assured that no errors were made.” Doyou agree? Explain.
Answer
trial balance is an internal report that lists each account in the general ledger together withthe balance in that account as of the trial balance date. !he trial balance is used to detecterrors in the accounts and in preparing financial statements. !rial balances that fail to balanceare the result of errors in "ournalising or posting and if the trial balance does not agree, itmeans that an error has been made.
#owe$er, e$en if the trial balance agrees, there are still errors that are not re$ealed by the trial balance. !his will be discussed in the next lecture.
#esti$*
%al$in %ar !rading had the following assets, liabilities, income and expenses and drawings asat &' (arch )*+-
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In$entory ,)** Drawings ),***
%ash at /an0 1,'** 2ales re$enue '1,**
3ixtures and fittings '&,4** 2alaries expense &,**
!rade payables 5,)** 6tilities expense 7,&**
8ong9term borrowing 5,*** :ental expense ,7**
!he beginning equity as at ' (arch )*+ is ;',**.
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Answer:
rofit for the period !otal income @ !otal expenses ;'1,** @
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#esti$* .
(ichael set up #ang 2eng Electrical, a sole proprietorship that sells hardware items from arented shop at an established shopping mall. #ang 2eng started its operations on ' pril)*+) and had the following cash transactions in pril )*+)-
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Answer
D%te Assets / Li%i&ities E2#it3
' pr %ash
A ;&*,***
9 %apital
A ;&*,***
) pr In$entory
A ;'*,***
!rade payables
A ;'*,***
9
5 pr !rade :ecei$ables
A ;5,5**
In$entory
9 ;),***
9 2ales re$enue
A ;5,5**
%ost of sales
9 ;),***
4 pr Deli$ery !ruc0
A ;,***
%ash
9 ;),***
ther payable
A ;7,***
9
1 pr In$entory
A 4*
!rade recei$able
9 ;)**
9 2ales returns
9 ;)**
%ost of sales
A ;4*
') pr In$entory
A ;,***
!rade payables
A ;,***
9
)* pr !rade recei$ables
9 ;5,&**
%ash
A ;5,&**
9 9
)& pr In$entory
9 ;7**
!rade payables
9 ;7**
9
)5 pr %ash
9 ; ,**
!rade payables
9 ;,**
9
)4 pr %ash
9 ;&,&**
9 2alaries expense
9 ;',)**
:ent expense
9 ;),***
6tilities expense
9 ;'**
&* pr %ash
A ;5,***
/an0 loan
A ;5,***
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#esti$* !
Ex 3-41 (Extracted from textbook page 141)
#arui Cursery, a retailer of garden plants and supplies, had the accompanying balance sheetaccounts on December &', )*+*-
3ollowing is a summary of transactions that occurred during )*+'-
urchase of in$entory on credit, ;55*,***.
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&. >repare a trial balance as at &' December )*+'.
A*s4er'
'.
D%te P%rti#&%rs Deit Cre)it
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Dec &' /alance bHd '&',*** Dr
!rade payables 55*,*** 4',*** Dr
%ost of sales 775,*** )&,*** Dr
Tr%)e P%3%&es
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' /alance bHd '',*** %r
In$entory 55*,*** ,*** %r
%ash 7),*** '17,*** %r
Tr%)e Reei5%&es
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' /alance bHd 7*,*** Dr
2ales re$enue 4'*,*** 45*,*** Dr
%ash 1),*** '54,*** Dr
S%&es Re5e*#e
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' !rade :ecei$ables 4'*,*** 4'*,*** %r
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C$st $6 s%&es
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' In$entory 775,*** Dr
C%s7
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' /alance bHd )7,*** Dr
Cote payable 4*,*** '*7,*** Dr
:ent expense )5,*** 1,*** Dr
ages expense '5,*** 4,*** %r
(iscellaneous expense 5,*** '',*** %r
!rade recei$ables 1),*** 5&',*** Dr
!rade payables 7),*** 51,*** Dr
N$te 8%3%&e
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' %ash 4*,*** 4*,*** %r
I*terest e98e*se
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' ccrued interest ,*** ,*** Dr
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Ar#e) i*terest
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' Interest expense ,*** ,*** %r
Re*t e98e*se
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' %ash )5,*** )5,*** Dr
W%+es e98e*se
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' %ash '5,*** '5,*** Dr
Mise&&%*e$#s e98e*se
Date Partic!ars Debit "redit #a!ance
)*+'
Dec &' %ash 5,*** 5,*** Dr
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&.
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