Nature and Technology of War Research Paper Example | Topics and Well Written Essays - 750 words

Nature and Technology of War - Research Paper Example There was frequent raiding of neighbors and confiscation of territories, goods and women from other groups by fighting. War during these times was highly ritualized and was based on a number of taboos and practices which limited the number of casualties as well as length of conflict. A condition referred to as endemic warfare. During the earliest times of Homo erectus society (hunter-gathers) the population was scarce and low to avoid war. However, with the invention and development of throwing spear and hunting techniques, probable violence between groups was made costly, ordering conflict prevention and groups moving apart and far to lessen competition for resources which could cause war. This describes the era of Paleolithic â€Å"warlessness† which took place until the emergence of the Homo sapiens. Starting around 12, 000 CE, war was transformed by the discovery of bows, slings and maces, according to Duiker and Spielvogel (2010). The bow appeared to be the most vital wea pon in the development of prehistoric war as exposed the attacker to less risk. The Neolithic period which is associated with the emergence of farming has been evidently associated with war, for instance, the massacre of a rival tribe. In this era before blockade weapons were developed to a high level of complex technology, fortification appeared to have been a successful method of protecting the community against invaders. Fortifications indicate that there was significant social organization in the societies of prehistoric people. Warfare at this period was also said to be more organized. The Nature and technology evolvement of war is more pronounced in the analysis of military historians. In the prehistoric era, there were a lot of conquest and movements with various technological innovations. The kingdoms and empires were the central units controlling war and were only maintained via military forces. War was common during this period due to lack of enough agricultural ability. W eapons and armor were largely produced as they were known to last longer than artifacts. Use of weapons was seen as an indication of prosperity or virtue and thus weapons were mostly placed on monuments and tombs of great warriors. With the invasion of writing it was used to record events such as major battles and conquest. Writing was also used for kings to boast of military conquest or victories through records. With the growth of the nation states, empires grew hence the increased demand for order and efficiency as well as increased recording. Some of the notable militaries in pre history include Babylonians, Egyptians, Greeks, Indians, early imperial Chinese ancient Romans, Carthagians and Persians among others, as stated by Hamblin (2006). The fertile crescent of Mesopotamia was the heart of many prehistoric conquests. The philosophers of the Warning States era in china, Mozi and his followers invented diverse blockade weapons and blockade crafts. These were used to level forti fied walls during a blockade of an opponent city. In most cases, the nature of war involved a kingdom fighting with another in order to overtake their land. As a result there were a lot of invasions. It also involved civil wars due to the increased power struggles within the empires generals. During the Dark Ages, when stirrups came into existence, war had forever changed. Invasions were combined with technological, social and cultural

COM 200 Communication building a Relationship Essay Example for Free

COM 200 Communication building a Relationship Essay Communication is going to be the cornerstone of any relationship; trust is going to be the heart of what makes any relationship beat and overwhelming love will be how any relationship will last. Taking the opportunity to learn more in depth about your interpersonal relationship with yourself and your partner can strengthen a relationship; therefore, taking such opportunities should be looked upon as a rehabilitation tool or a hinder on what you need to possibly improve to make a relationship work. One feature that interferes with communication with anyone whom you want to have a conversation with is barriers. Barriers are typically the reason that communication falters between individuals; therefore, it’s important to have an understanding of the conversation and be a listener. A recent article from the website skillsyouneed.com.uk mentions â€Å"Barriers may lead to your message becoming distorted and you therefore risk wasting both time and/or money by causing confusion and misunderstanding.† Overcoming barriers involves effective communication, especially when barriers hinder conveying a clear and concise message. Being aware of language barriers, physical outside sources like noise to nonverbal communication can and will effect a conversation. Have you ever tried to hold a conversation with a friend or family member while in a crowded restaurant, that not only had screaming or crying children but adults yelling at a television that was mounted and playing a sports show such as an NFL game will in this establishment? Under those circumstances, it’s rather amazing that a conversation can be heard, let alone understood. Many people may rely on nonverbal communication during times like those via using mediated communication such as text messaging between one another. A downfall during media communication is that your true emotions cannot be correctly stated when they are read, but so many individuals rely on mediated communication devices instead of face-to-face time. Increase of media communication has benefitted the majority of society to keep in touch with their family members, â€Å"A majority of those surveyed (83%) considers going online to be a â€Å"helpful† form of communication among family members† (Connecting Generations (2012)). Another negative about media communication is how people portray themselves through such social networks like facebook, myspace to name a few. Unfortunately, our world is not a safe place, and thanks to pedophiles, neither are social networks. Even having the knowledge of barriers that are being conducted during your conversation does not mean the receiver acknowledges the sender’s message and is willing to participate with the conversation. Some individuals just have the lack of interest in the topic at hand and decide not to maintain communication between others. You need to make sure that each person has a desire to have a rappaport and animated feelings about the conversation or you could end up with receiving a lot of â€Å"Umm†, â€Å"Yea† or a head nod. The impact that our nonverbal communication can provide a conversation and enlighten someone to what is actually going through the other person’s mind can drive a conversation instead of just relying on the power of words. It can be the simplest nonverbal communication as holding hands will driving down the road, leaving a simple gesture as a flower or having someone just smile that can impact how your day may go or end. â€Å"The best communicators are sensitive to the power of the emotions and thoughts communicated nonverbally. Nonverbal communication is the single most powerful form of communication,† stated Susan Heathfield (2013). You don’t have to say any words for what you feel you need to gesture, it’ not always necessary too. Without realization of what you are doing with your body language, facial expressions or hand gestures, you are providing the other person your true thoughts and feeling without having to say a single word. It’s about being able to read an individual with your eyes instead of listening to how they are speaking to you. One of the most important emotions someone can provide you is the sense of touch: on the cheek to trace a tear, a hug for comfort or a kiss on your lips just because they were overwhelmed with the fact that they miss you. One experience I have found with nonverbal communication is the rolling of eyes during a conversation. It shows the lack of interest, platen disrespect to the person talking and how uneducated someone is in common courtesy. I have been experiencing this particular nonverbal disrespect in my line of work for years and I have noticed how my own children have started to pick it up with some of their peers. Needless to say, we have talked about it and we are trying to improve. Unless you learn how to curb your nonverbal communication, you are capable of being read like an open book; however, there are those that flaunt nonverbal communication which is read incorrectly leading to perception, which can hinder a relationship. Perception is one of the biggest evils when it comes to any type of relationship, friend or romantic, because it’s showing a lack of trust, which is the heart of any relationship. Without perception, I believe people wouldn’t have a way to gossip or speculate about what they don’t have a clue about. The only people that truly know what is going on is those directly involved in the situation at hand; therefore, perception is what others think and want others to believe about said relationship based of their gossipy words. Words have the magical capability to create and affect attitude, behavior or perception of an individual that is being looked at from the outside; therefore, communication and the builtment of trust before judgment would accommodate any relationship. Attitude in a relationship can hinder it, even if said attitude is not specifically coming from your intimate partner. Your attitude from work can continue until you are home, during a nice dinner with your significant other and cause a conflict that wasn’t present before. I recommend establishing a rule that allows each individual to vent about their day for a maximum of ten minutes, and then they can’t mention it anymore and must enjoy their family time. We realized this works great for all family members since it’s a controlled release of all of our emotions that is not directed to anyone specific. Nan Russell wrote in his article for JobsBankUSA, â€Å"Communication that builds trust is a dialogue, with a fountain built from integrity, forthrightness and honesty.† Without those three, you can’t build trust which results in the lack of communication and therefore, no relationship. Possessing integrity and never waiving from it shows that you have principles and you will do what is right at all times. If you waive from it, your forthrightness should be direct about what you did wrong, regardless of how petty it may seem to you, because it may mean everything to the other individual. Honesty is going to be what holds your relationship together; lies are never welcomed in any type of relationship. But you need to realize outside judgment may weight heavier with your significant other or your closest friends. Outside judgment of an individual can drastically affect their attitude, behavior and how they are perceived, not just from others, but how they see themselves; therefore, they seek communication with someone they trust. Nothing hurts more than unkind words, regardless if the person knows you personally or not. People don’t realize that some take what they hear about themselves literally, and some have taken to the bullying they have endured over the years by, unfortunately, taking their lives. Projecting a better attitude than what those people are saying shows that you are the bigger person and that you feel that regardless of what any one individual may say about you, you have your own best interest at heart, and perception doesn’t mean anything to you. Finding that someone that you can trust full heartedly is a task in itself. You let all your guard down when you are fully comfortable with an individual, hoping they are not judgmental about what they hear about your past and when you find the one that doesn’t perceive you how others may do, then you can realize that they won’t ask you to place your integrity into jeopardy and take your friends at face value, instead of placing them on the back burner. Lack of trust and communication can destroy friendships, families, marriages, jobs and romantic relationships; the things that people find to be the most important in their lives. Without trust in a friend, you will feel like they are just associates. Without trust in family, you will feel like an outsider when visiting for a family get-together. Lack of trust and communication in a marriage may result in a divorce. Lack of trust and communication in the job force could lead to unemployment or a death of a co-worker. Lack of communication in a romantic relationship could mean the end before it even began. Without knowing who you are as an individual, it may affect any type of relationship you have the desire for. With the understanding of your self-concept, you are able to appreciate yourself, how your partner sees you and vice versa; however, the opinion of how others see you may affect how you see yourself. There is nothing more appreciative then someone who is confident with who they are, as long as it does not come across as cocky. When an individual realizes who they are in this life, or who they want to be, it can be the driving force of their happiness, and happiness can be contagious. According to a quote in our textbook written by Sole (2011), â€Å"Your self-concept is learned, it is organized, it is dynamic and it is changeable (Purky, 1988).† Self-concept has been part of us since we were born; we were taught to respect ourselves and respect those that are older. It’s organized due to the understanding of how we approach who we want to be. Dynamic for the impact of how our own self-concept can change other’s opinions of themselves and of us and changeable because we simply don’t know what tomorrow will bring to our lives or take away. The environment that you decide to place yourself in is going to affect you as an individual. It will help mold you into the person you feel you are, build your self-esteem and self-image; you are interchangeable to provide adaption. Wherever and however you grew up in society does not mean you have to be the same later in life. Placing yourself in an environment that makes you happy, regardless if it’s your home or occupation, is going to affect who you are going turn out to be. It will assist you in some way of how you mold your life, but it’s up to you in how you end up getting molded. Having a high self-esteem can be the driving force of how you want the world to see you, and as a couple, having self-esteem as a unit is going to be how other couples want to be you. Self-image is the appreciation of yourself, how you carry your knowledge, confidence and maturity. Self-image is the impact of how others may see you, want to be you or feel threaten by you. Having a self-image that is threatening towards others can be the cause of many individuals not having the desire to converse with you, let alone be friends with you. The abilities we have to change assist us with any environmental adaption we may come across in our lifetime. We never know what type of situations we may be in five minutes from bow, but our self-esteem and self-image could mean the difference of how the circumstances may play out. Regardless, it’s how you want to see yourself and how you project yourself to the world. Even with the input of your partner, your family and friends, you are the one responsible for you; therefore, you need to figure out what makes you happy, take their opinions with a grain of salt and that you will change only when you feel it fits the situation. Making changes to your appearance, the way you talk or how you spend your time or money to impress someone isn’t going to win them over; therefore, you are making yourself miserable in the process when you can’t be your true self. When someone can’t accept you for who you are, what you do or how you act as a human being, that relationship may need reevaluated. When a family member or friend can’t understand why you behave the way you do, or come across as outspoken and confident, sit down and explain to them why you feel that certain way about the topic. Losing a family member or a dear friend over a few choice words or lack of understanding can be heart wrenching, so keep all forms of communication open without losing yourself in the mix of it all. Self-disclosure of each individual in a relationship, especially with your significant other, will help you reinforce what you thought about who you are as a couple and as yourself. Self-disclosure about what happened to you in your past that made you who you are today can be the most significant information to your partner, and have a better outcome then what you expected. How you want to purse a college degree, where you want to visit in the world or how many kids you want (adopted, fostered or natural) is some of the insight people are looking for when they decide to enter into a relationship. Holding back about how you may feel about situations that arise can be the uttermost biggest mistake when looking at any relationship you are trying to have in your life. Research study in 2010 by BMC Medical Research methodology found that â€Å"readiness for self-disclosure† was associated with higher relationship quality. Being able to disclose yourself by sharing your fears, doubts, private thoughts and how you perceive yourself can and will impact your relationship to the fullest extent. Who wouldn’t want someone to cling to when you come upon a fear? Nothing is better than having the comfort of someone’s arms around you when you need it most. To provide you words of encouragement when you start doubting yourself? Simply words can make the biggest impact when you feel that regardless of what you do, you are going to fail. Share your private thoughts with and knowing that they won’t be divulged regardless of the circumstances? Having that person you can tell any secret to, and know that it won’t be told, even under the worst circumstances, is one reason people have best friends from such a young age. Without self-disclosure, no one really knows who they are keeping company with or who they are. It’s the difference between a fake individual and a real friend. Without divulging information and hiding how you feel about any situation with your partner can be seen as breaking the trust in which your relationship was built, showing no care of how the other may feel and showing the lack of communication that could be built. Who would want to be with someone who simply broke your trust on a daily basis or showed the lack of caring about what you were discussing? I have found myself in these circumstances throughout my life. I have had a family member break my trust, communicated the most horrible words that could be spoken to a child and since have not communicated any words with that individual in over eighteen years. I have had the best partner in the world, who did everything in his power to bring a smile to my face, showed when I least expected it and showered me with hugs and kisses. He took his time to leave me notes on my door, made dinner arrangements at the weirdest locations and made the most beautiful impact in my life that I have actually compared others to him upon his death. I have raised a child that doesn’t communicate at all with his father, who doesn’t take the time to call his son or write a letter. Instead my child has the pleasure of communicating with his dad’s ex-girlfriend, has extended family that is not blood reach out to him and has realized at a tender age of eleven that not everyone is who they say they are or will be. He is lucky to have numerous people in his life that want to be a part of it. I have learned to remove myself from environments that impact my moods and attitude, learned to step back and appreciate my friends (regardless how few) and my family and come to realize that if a person doesn’t like me for being me, they don’t deserve to be part of my life or my children’s lives. May people have asked me why I have disconnected myself from so many, besides those that I work with, and I have come to explain to them that there is enough stress, unwanted drama in this world that I don’t want it in mine, and if they can respect that, they are more than welcome to remain in my life. I am trying to show my children that communication is a two way street, just like respect, and that both is needed to make our world a better place. There is no need to speak negatively about anyone they don’t know or towards one another, that action does speak louder than words at times and that regardless of any situation that they may come upon, I will be there. Enlightenment of any aspect of a relationship, regardless of if it’s with yourself or your significant other, can benefit either party with the knowledge that they may have been seeking or possibly feared. It’s about having the confidence of communication and understanding between two individuals that influences the lasting years between couples. â€Å"Love is to trust, hope and endure whatever may come (Bible).† References: Bible Heathfiled, Susan M. (2013). Listen with Your Eyes. Tips for Understanding Nonverbal Communication. Retrieved from: http://humanresources.about.com/od/interpersonalcommunicatio1/a/nonverbal_com.htm Russell, Nan (2006). Six Tips for Trust-Enhancing Communication. Retrieved from: http://www.jobbankusa.com/CareerArticles/Executive/ca111506b.html Schoenberg, Nara (2011, Jan). Can We Talk? Researcher Talks about the Role of Communication in Happy Marriages. Retrieved from: http://search.proquest.com.proxy-library.ashford.edu/docview/840600645/fulltext/13CBA1F7DFE34D3C383/1?accountid=32521 Skillsyouneed.com.uk. Barriers to Effective Communication. Retrieved from: http://www.skillsyouneed.co.uk/IPS/Barriers_Communication.html Sole, K. (2011). Making Connections: Understanding Interpersonal Communications. San Diego, CA: Bridgepoint Education, Inc.

Coffee Marketing in Mana Woreda

Coffee Marketing in Mana Woreda 4.5.1. Market Places Market is an important factor that affects household decision-making in agricultural activities. Access to markets is a distance measured in kilometers to reach the nearest market. The study revealed the infrastructure in Mana woreda is generally satisfactory. There is an availability of market places near to villages with easy road access and proximity to larger towns. This has assisted farmers to reduce their transport cost and enlarge their market surplus and margins. The access has further supported to increase coffee production by the farming households. According to the survey result, it is confirmed that the average distance from the main road is at about 2km and from a rather close average distance from the main village market is at about 3.7 Km. Sample households are also located at a distance of 4.2km from cooperatives. The main market center is in Yebbu town, which is the woreda capital. 4.5.2. Market Participants Coffee passes through several stages before it reaches the ultimate consumers. These stages are local collection station, processing, storage, transportation and grading, exporting and domestic distribution. Both governmental and private enterprises are participating in collecting, processing, wholesaling and exporting activities (Elias, 2005). This study identified different coffee market participants in the exchange functions between farmers and final consumers. The major coffee market participants in the study area include coffee farm households, local collectors, wholesalers (suppliers) and Cooperatives. Coffee growers are the primary actors who cultivate and supply coffee to the market. They do not have adequate, reliable and timely market information than traders which forced them to sell their produce at low selling price. Local collectors are farmers or part time traders in assembly markets who collect coffee from farmers in village markets for the purpose of reselling it to wholesalers and consumers in the main market center. They use their financial resources and local knowledge to collect a bulk of coffee from the surrounding area. Wholesalers are known for purchase of coffee in a large amount with better financial and information capacity. They purchase coffee either directly from farmers or local collectors. They distribute large amount of coffee to the regional market (Jimma) and to terminal markets (Addis Ababa). Service Cooperatives (primary societies) made up of different local peasant associations play an important role in organizing farmers. They own washing stations a nd warehouses. They purchase coffee from the farmers and distribute to unions. 4.5.3. Marketing Channels Generally, four marketing channels were identified in the study area where coffee was passing from producers to consumers. The first channel was passing coffee from producers via coffee primary cooperatives to export through secondary cooperatives (Unions). In the second channel producers sold dried coffee to collectors who were selling to primary cooperatives to be exported directly through the Union. The third channel is a principal marketing channel with larger number of marketing agents through which sun dried coffee is passed from the coffee growers to coffee collectors and dry processed coffee is passed from coffee wholesalers to export market. In the last channel, coffee growers sell their coffee to wholesalers to export through exporters. The coffee marketing channels of the study area can be sketched like this: Therefore, the structure of coffee marketing system in the study area was characterized by the presence of individual coffee farmers to the production side and coffee primary cooperatives, local collectors and wholesalers (suppliers) to the marketing side. The Oromia Coffee Farmers’ Cooperative Union and private exporters were the members of the coffee marketing structure outside the study area. 4.5.4. Place and Price of Coffee Sale As the starting point for the distribution of coffee from producer to final consumer, farm respondents were asked where they were selling their different forms of coffee. According to the sample respondents, the major market places for selling both red cherry and sun-dried coffee were the nearest local markets for collectors, primary cooperative associations and Yebbu town (main market center of the woreda) for wholesalers and other marketing agents. With respect to whom the sample farm households are selling their coffee among the different marketing agents (intermediaries), they responded differently with regard to red cherry and sun-dried coffee. Farmers sell their coffee in the form of red cherry during harvesting and in sun-dried form after storing for some months. For the red cherry coffee, the majority (about 72.3%) of the farm household were sold to the Cooperatives. The remaining 19.2% and 8.6% were sold to Local collectors and Wholesalers respectively. Local collectors purchase the bulk of coffee in the case of sun dried (70.8%) from farm households where as the remaining 22% and 7.2% of sun-dried coffee bought by coffee wholesalers and cooperatives respectively. As indicated in the above table 4.10, from the total production of coffee, the sample farm respondents are producing more of sun-dried coffee (63%) than that of red cherry (37%). The red cherry coffee will be sold immediately after harvesting mostly for cooperatives which have washing stations and hand pulpers. According to the survey result, the principal cost of the farmers was cost of transporting coffee to the market followed by labor cost. Regarding with price, there is a difference in the price between red cherry and sun-dried coffee. The price of sun-dried coffee was higher than that of red cherry. All of the sample farm respondents in the study area reported that the average price for red cherry was nearly 6 Birr/kg during the last harvest season whereas for sun-dried coffee the mean price was 24.4 Birr/kg. But the prices of both types of coffee were fluctuating from time to time. Farmers sell their coffee for cooperatives as well as local traders. They preferred to sell their coffee to cooperatives because most of the sample farm households are members of the cooperatives and the prices of cooperatives for red cherry and sun-dried coffee were better than the other local traders. But, cooperatives were not active participants in the early and late seasons and favored to buy red cherry. During this time farmers were forced to sell their coffee (especially sun-dried) to local traders at a lower price due to limited bargaining power. According to the survey result, the sample respondents replied that there is no uniform coffee price at the market place. The reason for difference in the price of coffee was color difference (2.6%), quality difference (89.7%) and Farmer’s negotiating capacity (8.7%). Prices were exclusively determined by traders negotiating with farmers during time of transaction. Majority of farmers responded that they were price takers. Price setters were mostly local traders (81.7%) and only 18.3% of the farmers were in a position to decide on coffee price. Regarding with the terms of payment, 76.2 percent of the respondents stated that they were selling their coffee on cash basis and received the price as soon as they sold. According to the survey result, 71.3 percent of the respondents replied that the trend of coffee market is apparently decreasing across time. The reason behind this is the fluctuation and volatility of coffee price. Hence, the benefits earned from the production of coffee are significantly deteriorating because of the declining prices of coffee in the market.

Recycling: Very Important for the Earth Essay -- Recycling, 2015

â€Å"I think the environment should be put in the category of our national security. Defense of our resources is just as important as defense abroad. Otherwise what is there to defend?† --Robert Redford, Yosemite National Park dedication, 1985 Recycling has been around for a very long time; thousands of years to be exact. Some recycling methods then were recycling animal skins and scrap metal. Animal skins were re-used by the Indians for clothes, shoes and shelter and metal was melted down to make swords and other weapons. However, now, century’s later metal is still melted down to make things such as airplanes, cars, appliances, war weapons and much, much, more. And animal skin is still used today, to make shoes, boots and certain clothing items; such leather coats. Recycling became noticed as a trend by the public in the 1970’s. The industries have known about recycling for years. The public grabbed the concept that turning old items into new ones was just as much their duty as well as industries when the environment began to go unhealthy and when recycling centers opened. Now, curbside recycling programs and recycling centers are common. In 2009, approximately 9,000 curbside recycling programs and 3, 000 composting communities existed in the United States (EPA 2010). You can now recycle at home and in airports, schools, and the workplace. What is recycling? , What does waste consist of? , and what are the benefits of recycling? Recycling basics and steps What is recycling? Recycling can be defined as making a new product from used materials or â€Å"to adapt to a new use† and â€Å"to make ready for reuse† seem to fit best (Merriam-Webster, 2011). Don’t confused reusing with recycling. Reusing is far different from recyc... ... incineration and landfills, prevents pollution caused by the manufacturing of products from virgin materials; saves energy; decreases emissions of greenhouse gases that contribute to global climate change; conserves natural resources such as timber, water, and minerals; and helps sustain the environment for future generations (EPA 2011a and Palliser 2011). In conclusion revisiting recycling has been a great experience. Recycling is very important for the earth and clean air. We need to continue to do our part in protect the environment and making sure that landfills decrease instead of increasing and that are properly maintained. Recycling is very important for earth. Many companies are on broad with recycling doing their part to help decrease waste. Works Cited Palliser, Janna. (2011). Revisiting recycling. Science Scope. November 2011, pp. 14-17.

Safety of stored information and easier retrieval Essay

Task 1: strengthen the information systems to enhance effective communication within the business and in all departments. Benefits of effective technological systems (Sanders & Bok 2013). This facilitates effective communication with the departments in the business. The daily operations of the business need effective communication. Senior departmental managers need to communicate with supervisors and other subordinates. Communication channels such telephones and computer links facilitates transmission of information from one area to another. This saves time as managers and supervisors don’t take time moving from one section to the other. Safety of stored information and easier retrieval (Target, Grimshow & Powel 2009). They facilitate better storage of information within the organization. It reduces paper work and bunch of files stored in the offices. Computers stores information which can be retrieved easily through use of logs and personal codes, when they are keyed information is displayed easily. Task 2: improve the existing markets and expand through opening new branches throughout the world. Benefits of proper marketing strategies (Kerin, Hartley & Rudelius 2009). Marketing is a very essential aspect in every business. Strategies such as integrate online and offline advertising, message adaptation and contests and discounts. Proper marketing facilitates better customer relations and increase in sales. This being the key goal of any business organization, it facilitates growth and development. Meeting customer needs (Bettencourt 2010). Organizations are required to meet the needs of the customers for competitive advantages. Customers’ satisfaction helps the business to maintain customers both in the long-run and short-run. Distribution of the products within the required time in the markets and proper pricing enhances customers’ maintenance are reaching the potential customers. Task 3: use of online marketing and product promotion                There are many ways of reaching out customers and promoting products in the market. Use of website links and online transactions enables an organization to reach more customers all over the world. Forms of product promotions such as advertising through electronic commutations such as radios and TV, use of billboards and personal selling also helps in reaching out customers. This is very beneficial to an organization as it gets enjoys economies of scale through increased production and sales. Value added by the role of my CPO.                My role adds a significant role in my CPO. For clear understanding of this role is added and what it is about, the learner have to be well informed on matters concerning proper marketing strategies, how to apply them and the benefits associated with such strategies. This comprises of the ways that a business put into consideration with an aim of reaching more customers and increasing the sales. Proper marketing strategies are very beneficial to the business both for proper control of internal and external environments (Fisher 2008). Some of the benefits involved include; market expansion both local and international, competitive advantages as the business is able to acquire large market share and meet the needs of the customers. My role in regard to adding value to my CPO is based on my knowledge concerning the marketing mix and segmentation. This is an area that is must have full knowledge concerning how a market is well segmented, the tools of marketing mix such as products, price, promotion and distribution. This knowledge will help me in preparing a good report to be presented to the marketing manager for better installation and implementation of the required strategies. The strategies should be based on the individuals and target groups in relation to their needs, knowledge and cultural activities (Augustine 2009). For my CPO to have a value addition, I must have full knowledge concerning the strategies used by other industries/competitors, the marketing trends and the needs of the customer. This will facilitate and enhance a better delivery of findings and recommendations to the clients and have qualities and important information that helps the marketing teams. My role is to ensure there is a proper interrelationship between the three departments that is IT, transport and marketing. They help the organization to pursue their interests effectively. Resolving allowed these departments adds value to my CPO as it enables me to come u p with better and effective strategies that are beneficial to an organization. LG3 Nature of relationships incorporated in my CPO during the completion of my task. Effective completion of tasks requires proper involvement of all the employees and the management. Employees are provided with the necessary skills across all the tasks carried out in the business. This enables an employee to perform any task across all departments. I always interacts with the marketing department when having a discussion with them on how to improve their operation or resolving an issue. I have acquired more knowledge through my team leader as I have always accompanied him when carrying out daily operations. This has enabled me to establish a strong marketing team and enhance good relationships. Proper communication that is done horizontally from the team leader to supervisors and the people on the ground. Receiving information concerning the progress of the market and the issues affecting them is another task I do carry in the organization. Organizational chart Ideas on how my CPO may effectively manage the organizational internal relationships. The marketing department has a well established IT and transport systems. This becomes an advantage as communication is well facilitated and goods are transported to the respective markets. Internal environment gaps; questions that will help me in developing an understanding of the internal environment. Are all the departments well resourced with the required facilitates? For effective implementation and carrying out of the activities, the overall departments have to be equipped well. Are all departmental managers well skilled with the required knowledge? This will help me in determining if there is need to have training of all the departmental attendants. What are the strategies used by the competitor? Are the strategies used in the organization more effective compared to those of the competitors? Key facts concerning my industry sector                Strategic market planning is a marketing body that is focused on the content of strategy and formulation process at the unit level of a business (Kumar 2010). It also compares the role of marketing in the organizational activity’s sphere. This marketing body helps me in analyzing key facts concerning key facts of my organization. Skills of employees                Employees are the key players in the organizational marketing. They need to be well skilled as they are the ones who interact with customers on their daily basis. Product packaging and branding                Product appearance is very vital to the eyes of the customer. The organization facilitates better packaging by using amounts affordable by the customers of all aspects. Issues faced by the business world                Political instability; Most of the countries in the world are faced with political instability. Such events are associated with chaos hence creating unfavorable marketing conditions. Market diversification: many businesses are located in different parts of the world. To have effective cooperation and proper management, the business world is facing problems of meeting the customer demands. My CPO provides strategies of ensuring that the organization has well manageable markets. External stakeholders and their significance in the relationship.                Governmental agencies of NZ, Agencies such as the tax authority and the licensing board influences the marketing operations of the business. Tax levies and restrictions imposed by the licensing board affects the rate at which the organization opens up new markets. LG 3.3 topic: entrepreneurship and communication Product promotion:                It is an area that has contributed a lot towards reaching out customers in different corners of the world. It is an area that requires a lot of skills and confidentiality as it can either assist the business in reaching more customers or can lead to loss of confidence towards the business. It has been an area of my interest, as it is closely associated with my CPO’s discipline in its industry sector. Online transaction                Carrying out online transactions assists the business to have safer operations. In AUT business school, I acquired knowledge and skills necessary for carrying out online transactions. It facilitates the growth of the business and should be adopted by the organization. I finds it easy to operate as it has closer connection with my CPO and its industry. Learning goal 4: ethical and social responsibility facing society and business                Ethical means to do with what is wrong and right, based on morality (Cafoliete 2010). Social responsibility is refers to an ethical theory that an individual or organization has an obligation to act for societal benefits (Amaeshi 2013). An ethical decision facilitates better services and creates a good image of an organization. My CPO and industry may consider offering training on how to ethical business characteristics and ensures customer needs are fully met (Bates 2013). Lack of enough skills may lead to a challenge in my CPO on making business decision that is ethical. LG 5: work collaboratively Developing business communication skills                Communication is a key factor in every business organization. Communication enhances better relationships with others in the industry thus facilitating work collaborations. My strength in this aspect is that my CPO consists of the largest communication department which links with other external organizations. The major weakness is on the poor communication skills currently displayed by many of the departmental attendants. My goal is to ensure that communication has been enhanced and effective channels installed. The strategies to be put in place include; in-service training and workshops should be held regularly, installation of communication devices in all departments and skilled managers employed. In order to assess whether the goals have been achieved, it should be measured in terms of profit margin and the number of customers. Aspect 2: working effectively in teams                Team work is a key tool in enhancing effective operations and increased productivity. It brings unity thus enhancing collaboration with others. The strengths in this aspect are that majority of the group members are of the same age thus works well as a group. The weakness is on the team leadership as my CPO industry has a few experienced managers. My goal is to develop the strongest working team in the industry. The strategies set include ensuring that more skilled managers are employed, workshops held to regular basis to train members on how to have strong working teams. Though it is hard to assess the strength of a team, my industry will check on the interrelationship between the internal and external environments to assess whether the goal has been met. References Amaeshi, K., & Nnodim, P. (2013). Corporate Social Responsibility, Entrepreneurship, and Innovation. Hoboken: Taylor and Francis. Bettencourt, L. (2010). Service innovation how to go from customer needs to breakthrough services. New York: McGraw-Hill. Bok, D. C. (2013). Universities in the marketplace: the commercialization of higher education (45 ed.). Princeton, N.J.: Princeton University Press. Kerin, R. A., Hartley, S. W., & Rudelius, W. (2009). Marketing (9/e [9th ed.). Boston: McGraw-Hill/Irwin. Kumar, D. (2010). Enterprise Growth Strategy Vision, Planning and Execution.. Farnham: Ashgate Pub.. Oliver, S. (2010). Public relations strategy (3rd ed.). London: Kogan Page/CIPR. Targett, D., Grimshaw, D. J., & Powell, P. (2009). IT in business a manager’s casebook. Oxford: Butterworth-Heinemann Amaeshi, K., & Nnodim, P. (2013). Corporate Social Responsibility, Entrepreneurship, and Innovation. Hoboken: Taylor and Francis. Augustine, C. H. (2009). Improving school leadership the promise of cohesive leadership systems. Santa Monica, CA: RAND. Bates, C. G. (2013). Global social issues an encyclopedia. Armonk, NY: M.E. Sharpe. Bender, T. (2012). Discussion-based online teaching to enhance student learning: theory, practice, and assessment (2nd ed.). Sterling, Va.: Stylys. Source document

Lcci Passport to Sucess Level 1 Book-Keeping Answer

Level 1 Book-keeping Solutions Booklet For further information contact us: Tel. +44 (0) 8707 202909 Email. [email  protected] com www. lcci. org. uk London Chamber of Commerce and Industry (LCCI) International Qualifications are provided by EDI, a leading international awarding body. Passport to Success Level 1 Book-keeping Solutions Booklet The initials LCCI and the words LONDON CHAMBER OF COMMERCE AND INDUSTRY are registered trademarks belonging to the London Chamber of Commerce and Industry and are used under licence.Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the Publishers will be pleased to make the necessary arrangements at the first opportunity.  © EDI 2008 First published in 2008. All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or hel d within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited.Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Cover photo: www. fotolia. com TABLE OF CONTENTS 1. 2. 3. 4. The Accounting Equation and the Balance Sheet Double entry system for assets, liabilities and capital Recording double entry for stock The double entry system for Expenses and Revenues and the Effect of Profit (or loss) and drawings upon capital 1 4 7 11 5. 6. 7. 8. 9.Balancing accounts and the Trial Balance Trading and Profit & Loss Accounts: An introduction The Balance Sheet Final Accounts with further considerations The Division of the Ledger and Books of Original Entry 16 25 28 31 38 39 41 44 48 53 56 59 62 68 71 75 77 81 82 10. Bank Facilities 11. Cash Books 12. The Sales and Purchases Day Books 13. The Returns Day Books 14. The Journal 15. The Petty Cash Imprest System 16. Adjusting for accruals and prepayments 17. Depreciation of Fixed Assets 18. Bad Debts 19. Bank Reconciliation Statements 20.Capital and Revenue Expenditure 21. Errors in the accounts and their corrections 22. Control Accounts 23. Final Accounts and year end adjustments Chapter 1 The Accounting Equation and the Balance Sheet Answers to ‘Think about it’ Questions Page 5 – Why are liabilities shown on the right hand side of the balance sheet and not on the left? Because based on the accounting equation it has to be on the same side as capital. Answers to Activities Activity 1. 1 (a) (b) (c) (d) L A A A (e) L (f) A (g) C Activity 1. 2 ASSETS ? 5 000 4 200 4 100 3 500 6 900 CAPITAL ? 000 2 500 2 800 2 400 4 100 LIABILITIES ? 2 000 1 700 1 300 1 100 2 800 (a) (b) (c) (d) (e) Solutions to Target Practice Questions Question 1 (a) (b) (c) (d) (e) (f) ‘†¦assets l ess liabilities equals capital’. assets liabilities debtor creditor Balance Sheet 1 Question 2 ASSETS ? 3 100 800 2 200 LIABILITIES ? Shop fittings Cash register Stock of goods Creditors Loan – T Armani Bank 1 000 1 800 870 6 970 2 800 Capital = Assets – Liabilities Capital = 6970 – 2800 = ? 4170 Question 3 M Williams Balance Sheet at 30 June 20X6 ?Cash at Bank Stock of goods Fixtures and Fitting Debtors Motor vehicles 2 614 5 860 1 900 3 750 4 200 18 324 Creditors Loan – D Wong Capital (missing item) ? 4 150 3 600 10 574 _____ 18 324 Question 4 Transactions (a) The owner borrows ? 5000 from L Pole and the money is put into the business’ bank account. A debtor pays the business ? 250 by cheque. The owner buys a motor vehicle on credit ? 6200. The owner withdraws ? 160 from the business’s bank account for his personal use. The business sells goods on credit for ? 840. The owner puts a further ? 000 in cash into the business. The money is put into the business’s bank account. The business pays a creditor ? 290 by cheque. Assets + Bank Effect upon Liabilities + Loan Capital (b) (c) (d) + Bank – Debtors + Motor Vehicle – Bank + Creditors – Capital (e) (f) – Stock + Debtors + Bank + Capital (g) – Bank – Creditors 2 Question 5 W Mandrake Balance Sheet at 30 June 20X5 ? 5 360 4 500 1 845 2 800 5 100 19 605 ? 2 900 3 000 13 705 _____ 19 605 Stock of goods Debtors Cash at Bank Fixtures and fittings Motor vehicles Creditors Loan – L Walter Capital (balancing figure)W Mandrake Balance Sheet at 31 July 20X5 ? Stock of goods Creditors (5360 + 700 – 600) 5 460 (2900 + 700 – 400) Debtors Loan – L Walter (4500 – 1100 + 600) 4 000 Capital Cash at Bank (balancing figure) (1845 – 400 + 1100) 2 545 Fixtures and Fittings 2 800 Motor Vehicles 5 100 19 905 ? 3 200 3 000 13 705 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 905 Question 6 D Duncan Balance Sheet at 21 January 20X7 ? 20 000 2 100 500 100 700 123 300 ______ 123 300 ? 120 000 3 300 Motor Vehicles Stock of goods (1500 + 600) Debtor – A Gianna Cash at Bank (101 000 – 300) Capital Creditor – Stax Suppliers (3000 + 600 – 300)Question 7 The difference between a cash transaction and a credit transaction is based on when payment is made. With a cash transaction, payment is made immediately for goods and/or services purchased while in a credit transaction payment is made 3 Chapter 2 Double Entry System for Assets, Liabilities and Capital Answers to ‘Think about it’ Questions Page 16 – Why is it necessary to keep separate accounts for each debtor and creditor? So it can clearly be seen how much is owed to individual creditors and how much is owed by individual debtors. Answers to ActivitiesActivity 2. 1 (a) Bought office furniture for cash (b) Sold some office furniture on credit to C Bing (c) Bought motor vehicles on credit from Wong Ltd (d) A debtor, P Butler, pays the business by cheque (e) The owner puts a further amount into the business by cheque (f) Returned one of the motor vehicles to Wong Ltd (g) Paid a creditor, T Bird, by cash (h) Paid by cheque for the motor vehicle bought from Wong Ltd Debit Office Furniture C Bing Motor Vehicles Bank Bank Wong Ltd T Bird Wong Ltd Credit Cash Office Furniture Wong Ltd P Butler Capital Motor Vehicles Cash BankSolutions to Target Practice Questions Question 1 The left hand side of a ‘T’ account is the debit side and the right hand side is the credit side. To ‘debit’ an account the transaction is entered on the left hand side and to ‘credit’ an account, the transaction is entered on the right hand side. Question 2 There must be a debit entry and a corresponding credit entry of the same value (and vice versa) for every transaction that occurs. Question 3To know when to debit or credit an account, you will first need to determine the type of the account and decide how the transaction will affect the account ;( whether increase or decrease) and then apply the double entry rules as below: To increase an asset, DEBIT the account To decrease an asset, CREDIT the account To increase a liability or capital, CREDIT the account To decrease a liability or capital, DEBIT the account 4 Question 4 Bank ? 20X2 6 000 July 15 July 29 20X2 July 01 Capital Office Machinery Elstead Garage ? 420 2 900 Capital 20X2 July 01 Bank ? 6 000 20X2 July 06Motor Vehicle ? Elstead Garage 2 800 20X2 July 29 Bank Elstead Garage ? 20X2 2 800 July 06 Motor vehicle ? 2 800 20X2 July 15 Bank Office Machinery ? 420 20X2 July 23 Office Equipment ? Longmore & Sons 70 Longmore & Sons 20X2 July 23 Office equipment ? 370 Question 5 Cash ? 20X9 2 000 April 08 300 April 30 20X9 April 01 April 29 Capital Bank Bank Furniture World ? 1 000 800 5 Bank 20X9 April 01 April 03 April 08 Capital Loan – S Lee Cash ? 8 000 3 000 1 000 20X9 April 14 April 23 April 29 Delivery Van Loan – S Lee Cash ? 1 500 1 200 300 Capital 20X9 April 01 April 01Cash Bank ? 2 000 8 000 20X9 April 23 Loan – S. Lee ? 20X9 1 200 April 03 Bank ? 3 000 20X9 April 14 Bank Delivery Van ? 1 500 20X9 April 20 Furniture World Office Furniture ? 20X9 1 100 April 26 Furniture World ? 200 20X9 April 26 April 30 Office Furniture Cash Furniture World ? 20X9 200 April 20 800 Office Furniture ? 1 100 6 Chapter 3 Recording Double Entry for Stock Answers to Activities Activity 3. 1 Debit Office Furniture Cash Purchases A Litton D Penarth Motor Van Returns Inwards Purchases Credit Cash Sales A Litton Returns Outwards Sales Grange Garage D Penarth Bank a) Bought office furniture for use in the business by cash (b) Sold goods for cash (c) (d) (e) (f) Bought goods on credit from A Litton Returned to A Litton some of the goods bought Sold goods on credit to D Penarth Purchased motor van on credit from Grange Garage (g) D Penarth returned some goods to us (h) Bought goods paying immediately by cheque Solutions to Target Practice Questions Question 1 ‘Purchases’ means goods bought by the business with the intention of reselling them for profit as a part of its trading activities. ‘Sales’ means oods sold by the business that were originally bought for resale purposes. In other words, the sale of those goods in which the business trades or deals. Question 2 (a) This is not good practice. Parts returned to suppliers should be credited to a Returns Outwards Account and parts returned from customers should be debited to Returns Inwards Account. This is necessary to provide information on the totals of the returns and to assess whether these are increasing or decreasing over time. (b) Goods sold for cash is recorded by debiting the cash account and crediting the sales account.Goods sold on credit is first recorded by debiting the debtor account and crediting the sales account; when the debtor pays for the goods his account is credi ted and the bank/cash is debited. Question 3 (a) (b) (c) (d) (e) (f) Sold goods on credit to F. Winter N. Armour returns goods to you You settle a creditor’s account by cheque F. Winter pays his account You pay Grange Garages by cheque the amount due on the delivery vehicle previously purchased You return goods to B. Smart Debit F Winter Returns Inwards Creditor Bank Grange Garages B Smart Credit Sales N Armour Bank F Winter Bank Returns Outwards Question 4 20X7 March 01 Capital March 30 B Wright Bank ? 20X7 10 000 March 03 Office Furniture 70 March 23 Scales Motors March 26 T Hunt ? 460 3 600 320 Capital 20X7 March 01 Bank ? 10 000 20X7 March 03 Bank Office Furniture ? 460 20X7 March 05 Purchases Purchases ? 375 T Hunt 20X7 20X7 ? March 08 Returns Outwards 55 March 05 March 26 Bank 320 Purchases ? 375 Returns Outwards 20X7 March 08 T Hunt ? 55 20X7 March 12 Sales B Wright 20X7 ? 156 March 19 March 30 Returns Inwards Bank ? 26 70 Sales 20X7 March 12 B Wright ? 56 8 20X7 March 15 Scales MotorsMotor Vehicle ? 3 600 20X7 March 23 Bank Scales Motors ? 20X7 3 600 March 15 Motor Vehicle ? 3 600 20X7 March 19 B Wright Returns Inwards ? 26 Question 5 20X7 October 01 Capital October 17 Cash Cash 20X7 ? 8 600 October 02 80 October 07 ? 8 000 179 Bank Purchases Capital 20X7 October 01 Cash ? 8 600 20X7 October 02 Cash October 23 Loan – R Nandha October 31 J Durrant Bank ? 20X7 8 000 October 21 October 29 1 200 303 Motor Vehicle M Price ? 1 990 100 20X7 October 03 October 07 M Price Cash Purchases ? 250 179 20X7 October 13 Returns Outwards October 29 Bank M Price ? 0X7 October 03 32 100 Purchases ? 250 9 Fixtures & Fittings 20X7 October 05 Display Ltd ? 2 750 20X7 October 07 Display Ltd ? 730 Display Ltd 20X7 ? 20X7 ? October 09 Fixtures & Fittings 30 October 05 Fixtures & Fittings 2 750 20X7 October 11 Sales J Durrant 20X7 ? 345 October 26 Returns Inwards October 31 J Durrant ? 42 303 Sales 20X7 October 11 J Durrant October 17 Cash ? 345 80 Returns Outwards 20X7 October 13 M Price ? 32 20X7 October 21 Bank Motor Vehicle ? 1 990 Loan – R Nandha 20X7 October 23 Bank ? 1 200 20X7 October 26 J Durrant Returns Inwards ? 42 10Chapter 4 The Double Entry System for Expenses and Revenues and the Effect of Profit (or Loss) and Drawings upon Capital Answers to ‘Think about it’ Questions Page 36 – What kinds of expense and revenue accounts would you expect to see in the books of a Bank? Revenue Accounts Loan interest receivable Commission receivable Service charges (eg. bank charges) Expense Accounts Interest payable Salaries and wages Insurance Stationery Utilities Answers to Activities Activity 4. 1 Transactions Paid general expenses in cash ? 150 Received commission by cheque ? 230 Paid for office stationery by cash ? 5 Paid telephone by cheque ? 230 Received interest of ? 350 by cheque Accounts General Expense Cash Bank Commission Receivable Office Stationery Cash Telephone Bank Bank Interest Receivable Type of acco unt Expense Asset Asset Revenue Expense Asset Expense Asset Asset Revenue Transaction effect Increase Decrease Increase Increase Increase Decrease Increase Decrease Increase Increase Action in the account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Solutions to Target Practice Questions Question 1 (a) Revenue (b) The entries are on the credit side of the account. 11Question 2 Expense accounts should be debited and revenue accounts should be credited. Question 3 20X3 April 01 April 24 April 30 Bank 20X3 ? 5 000 April 03 85 April 05 1 000 April 14 April 21 April 27 ? 370 260 130 20 385 Capital Sales Capital Office Equipment Rent Cash Stationery A Smart Capital 20X3 April 01 April 30 Bank Bank ? 5 000 1 000 20X3 April 03 Bank Office Equipment ? 370 20X3 April 05 Rent Rent ? 260 20X3 April 08 A Smart Purchases ? 420 20X3 April 11 April 27 Returns Outwards Bank A Smart ? 20X3 35 April 08 385 Purchases ? 420 Returns Outwards 20X3 April 11 A Smart ? 35 12 0X3 April 14 Bank ? 130 Cash 20X3 April 15 Wages ? 115 20X3 April 15 Cash Wages ? 115 20X3 April 18 Sales R Squires ? 175 Sales 20X3 April 18 April 24 R Squires Bank ? 175 85 20X3 April 21 Bank Stationery ? 20 Question 4 Bank 20X4 ? 7 000 May 02 100 May 08 May 19 May 24 May 26 May 31 Capital 20X4 May 01 20X4 May 01 May 28 Capital D Langford Rent Fixtures & Fittings Drawings Cash R Lester Office Equipment ? 280 170 160 240 470 215 Bank ? 7 000 20X4 May 02 Bank Rent ? 280 13 20X4 May 05 R Lester Purchases ? 520 20X4 May 12 May 26 Returns Outwards Bank R Lester 20X4 ? 45 May 05 475 Purchases 520 20X4 May 08 Bank Fixtures & Fittings ? 170 Returns Outwards 20X4 May 12 R Lester ? 45 Sales 20X4 May 15 D Langford ? 32 20X4 May 15 Sales D Langford 20X4 ? May 22 32 May 28 Returns Inwards Bank ? 24 100 20X4 May 19 Bank Drawings ? 160 20X4 May 22 D Langford Returns Inwards ? 30 20X4 May 24 Bank Cash ? 20X4 240 May 30 Wages ? 80 14 20X4 May 30 Cash Wages ? 80 20X4 May 31 Bank Office Equipment ? 215 Question 5 Drawings are defined as money, goods, or services withdrawn from the business by the owner(s) for their personal use. Drawings reduce the capital of the business. Question 6 a) Answer = ? 2500 Workings: 1 February 20X7 Assets Equipment Stock Bank Liabilities Creditors Loan Capital ? 8 000 6 000 2 000 ? 2 000 1 000 ?16 000 ?3 000 ?16 000 – ? 3000 = ? 13 000 28 February 20X7 Assets Equipment Stock Bank Liabilities Creditors Loan Capital ? 8 000 2 000 8 500 ? 2 000 1 000 ?18 500 ?3 000 ?18 500 – ? 3000 = ? 15 500 Therefore, Opening Capital + Profit = Closing Capital ? 13 000 + ? = ? 15 500 ? 15 500 – ? 13 000 = ? 2500 (b) Profits increase capital whereas losses reduce it. 15 Chapter 5 Balancing Accounts and the Trial Balance Answers to ‘Think about it’ QuestionsPage 49 – How the double entry principle relates to the balancing of accounts. For every ‘balance c/d’ there is a corresponding ‘balance b/d’ of the same amoun t on the opposite side of the account. Answers to Activities Activity 5. 1 (a) An account will have a debit balance if the total of the debit entries is greater than the total of the credit entries. This means that the balance brought down from the last month (balance b/d) is on the debit side of the account. (b) An account will have a credit balance if the total of the credit entries is greater than the total of the debit entries.This means that the balance brought down from the last month (balance b/d) is on the credit side of the account. (c) The ‘balance c/d’ is the amount transferred (carried down or carried forward) from one accounting period to the next; this is the balance at the last date of the accounting period (e. g. a month). The ‘balance b/d is the amount transferred (brought down or brought forward) from a previous accounting period to the current one; this is the balance at the first date of the accounting period. (d) The double lines are necessary to show that the account has been balanced and that the totals are final figures. e) Accounts are closed off when there is no balance on the account at the end of the accounting period. Activity 5. 2 20X9 July 01 July 04 July 09 July 13 July 15 July 19 July 22 July 24 July 29 Capital Equipment Wages Sales Computers Wages Sales Motor vehicles Wages Debit ? 55 000 Credit ? 5 000 900 Balance ? 55 000 50 000 49 100 58 650 50 650 49 750 53 630 47 630 46 530 9 550 8 000 900 3 880 6 000 1 100 16 Solutions to Target Practice Questions Question 1 E. Appleby 20X6 ? 650 October 07 Returns Inwards 276 October 18 Bank 190 October 31 Balance c/d 1 116 506 0X6 October 03 Sales October 12 Sales October 24 Sales November 01 Balance b/d ? 120 490 506 1 116 Answer – There is a debit balance of ? 506. Question 2 N Small ? 145 215 185 ___ 545 365 20X3 March 04 March 18 March 23 Sales Sales Sales 20X3 March 13 March 26 March 30 March 31 Returns Inwards Returns Inwards Bank Balance c/d ? 20 35 125 365 545 April 01 Balance b/d 20X3 March 21 March 31 Bank Bank A Smith 20X3 ? 70 March 10 290 360 Purchases ? 360 ___ 360 20X3 March 07 March 28 March 31 T Dove 20X3 ? Returns Outwards 35 March 02 Bank 235 March 15 Balance c/d 310 580 April 01 Purchases PurchasesBalance b/d ? 270 310 ___ 580 310 N Small is a debtor and T Dove is a creditor. A Smith is neither. 17 Question 3 T Dove 20X3 March 02 March 07 March 15 March 28 Purchases Returns Outwards Purchases Bank Debit ? 35 310 235 Credit ? 270 Balance ? 270 Cr 235 Cr 545 Cr 310 Cr N Small 20X3 March 04 March 13 March 18 March 23 March 26 March 30 Sales Returns Inwards Sales Sales Returns Inwards Bank Debit ? 145 215 185 35 125 Credit ? 20 Balance ? 145 Dr 125 Dr 340 Dr 525 Dr 490 Dr 365 Dr A Smith 20X3 March 10 March 21 March 31 Purchases Bank Bank Debit ? 70 290 Credit ? 360 Balance ? 360 Cr 290 Cr NILQuestion 4 (a) 20X5 January 01 January 23 January 26 January 31 Capital Cash S Lee Capital Bank ? 20X5 25 000 January 01 6 000 Janua ry 25 5 500 January 29 5 000 January 30 January 30 January 31 _____ January 31 41 500 23 000 ? Rent 2 000 Cash 500 Midland Motors 4 000 D. Terry 8 000 E. Appleby 2 000 Electricity 2 000 Balance c/d 23 000 41 500 February 01 Balance b/d 20X5 January 31 Balance b/d Capital ? 20X5 30 000 January 1 Bank .. †¦Ã¢â‚¬ ¦. January 31 Bank 30 000 February 01 Balance c/d ? 25 000 5 000 30 000 30 000 18 20X5 January 1 Bank February 01 Balance b/d Rent 20X5 ? 2 000 January 31 2 000 2 000Balance c/d ? 2 000 2 000 20X5 January 03 January 05 January 15 D Terry E Appleby D Terry February 01 Balance b/d Purchases ? 20X5 5 000 January 31 3 000 10 000 18 000 18 000 Balance c/d ? 18 000 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18 000 20X5 January 22 January 30 January 31 Returns Outwards Bank Balance c/d D Terry 20X5 ? January 03 Purchases 2 000 January 15 Purchases 8 000 5 000 15 000 February 01 Balance b/d ? 5 000 10 000 _____ 15 000 5 000 Motor Car 20X5 20X5 ? January 04 Midland Motors 4 000 January 31 February 01 Balance b/d 4 000 Balance c/d ? 4 000 20X5 January 29 Bank Midland Motors 20X5 ? 4 000 January 4 4 000 Motor Car 4 000 4 000 20X5 January 30 January 31 Bank Balance c/d E Appleby 20X5 ? Purchases 2 000 January 5 1 000 3 000 February 01 Balance b/d ? 3 000 †¦Ã¢â‚¬ ¦.. 3 000 1 000 19 20X5 January 10 January 25 Sales Bank February 01 Balance b/d Cash 20X5 ? 6 000 January 23 500 January 28 †¦Ã¢â‚¬ ¦.. January 31 6 500 250 Bank Office expenses Balance c/d ? 6 000 250 250 6 500 20X5 January 31 Balance c/d Sales 20X5 ? 14 000 January 10 Cash †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ January 20 S Lee 14 000 February 01 Balance b/d ? 6 000 8 000 14 000 14 000 20X5 January 20 Sales February 01 Balance b/d S Lee 20X5 ? 8 000 January 24 January 25 †¦Ã¢â‚¬ ¦.. January 31 8 000 1 500Returns Inwards Bank Balance c/d ? 1 000 5 500 1 500 8 000 20X5 January 31 Balance c/d Returns Outwards 20X5 ? 2 000 January 22 D Terry 2 000 February 01 Balance b/d ? 2 000 2 000 2 000 20X5 January 24 S Lee February 01 B alance b/d Returns Inwards 20X5 ? 1 000 January 31 1 000 1 000 Balance c/d ? 1 000 1 000 20 Office Expenses 20X5 ? Cash 250 January 31 250 February 01 Balance b/d 250 20X5 January 28 Balance c/d ? 250 250 20X5 January 31 Bank February 01 Balance b/d Electricity 20X5 ? 2 000 January 31 2 000 2 000 Balance c/d ? 2 000 2 000 (b) Steve Trial Balance at 31January 20X5 DR CR ? Bank Capital Rent Purchases D Terry Motor Car E Appleby Cash Sales S Lee Returns Outwards Returns Inwards Office Expenses Electricity 23 000 30 000 2 000 18 000 5 000 4 000 1 000 250 14 000 1 500 2 000 1 000 250 2 000 52 000 _____ 52 000 Question 5 Bank 20X8 ? 5 000 May 16 700 May 27 May 30 †¦Ã¢â‚¬ ¦.. May 31 5 700 1 300 20X8 May 01 May 18 Balance b/d Bank Dodd Delivery Van Cash Balance c/d ? 2 900 1 200 300 1 300 5 700 June 01 Balance b/d 21 20X8 May 31 Balance c/d Capital 20X8 ? 20 000 May 01 20 000 June 01 Balance b/d Balance b/d ? 20 000 20 000 20 000 20X8 May 01 May 04 May 30 June 01 Balance b/d Sales Bank Balance b/d Cash 20X8 ? 000 May 07 2 000 May 23 300 May 31 3 300 900 Purchases Office Expenses Balance c/d ? 1 500 900 900 3 300 20X8 May 16 May 31 Bank Balance c/d Dodd 20X8 ? 2 900 May 01 2 100 May 02 5 000 June 01 Balance b/d Purchases Balance b/d ? 2 000 3 000 5 000 2 100 20X8 May 01 May 10 June 01 Balance b/d Sales Balance c/d Fish ? 20X8 6 000 May 18 5 000 May 31 11 000 10 300 ? Bank Balance b/d 700 10 300 11 000 20X8 May 01 June 01 Balance b/d Balance b/d Furniture ? 20X8 10 000 May 31 10 000 10 000 Balance c/d ? 10 000 10 000 20X8 May 02 May 07 June 01 Dodd Cash Balance b/d Purchases 20X8 ? 3 000 May 31 1 500 4 500 4 500 Balance c/d 4 500 †¦Ã¢â‚¬ ¦.. 4 500 22 20X8 May 31 Balance c/d Sales 20X8 ? 7 000 May 04 ____ May 10 7 000 June 01 Cash Fish Balance b/d ? 2 000 5 000 7 000 7 000 20X8 May 23 June 01 Cash Balance b/d Office Expenses 20X8 ? 900 May 31 900 900 Balance c/d ? 900 900 20X8 May 27 June 01 Bank Balance b/d Delivery Van 20X8 ? 1 200 May 31 1 200 1 200 Balance c/ ? 1 200 1 200 (b) Tom Trial Balance at 31 May 20X8 DR CR ? ? Bank Capital Cash Dodd Fish Furniture Purchases Sales Office Expenses Delivery Van 1 300 20 000 900 2 100 10 300 10 000 4 500 7 000 900 1 200 29 100 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 29 100 23 Question 6 (a) T. Lennon Trial Balance at 31 December 20X9 DR CR ? Motor Vehicle Purchases Sales Stock of Goods Cash at Bank Fixtures and Fittings Wages Debtors Creditors Rent Drawings General Expenses Loan from D. Waller Capital 4 500 2 960 4 230 1 800 6 740 7 900 2 310 1 960 2 600 1 250 180 930 2 000 21 700 30 530 30 530 (b) A trial balance checks the arithmetical accuracy of the double entry. (c) Errors not revealed by the trial balance: 1. A transaction that has been completely omitted 2. A transaction that was entered correctly but using the wrong amount Errors revealed by the trial balance 1. Entering only one side of a transaction 2. Addition errors Question 7 a) (b) (c) (d) (e) (f) Credit Debit Debit Credit Credit Debit 24 Chapter 6 Trading and Profit & Loss Accounts: An Introduction Answers to Activities Activity 6. 1 Year Sales ? Cost of goods sold ? 23 230 23 900 21 500 Gross Profit/Loss ? 5 890 2 889 7 000 Operating Expenses ? 3 311 3 600 2 900 Other Revenue ? 600 200 – Net Profit / Loss ? 3 179 (511) 4 100 2005 2006 2007 29 120 26 789 28 500 Solutions to Target Practice Questions Question 1 Andrew Gordon Trading and Profit & Loss Account for the year ended 31 December 20X2 ? 26 200 3 100 23 100 11 570 34 670 6 100 1 200 160 380 3 730 11 570 ? 34 670 _____ 34 670 Gross profit b/d 11 570Purchases Less Stock at 31 December 20X2 Cost of goods sold Gross profit c/d Wages Rent Insurance Lighting and heating Net profit Sales ______ 11 570 25 Question 2 A. Darnell Trading and Profit & Loss Account for the year ended 30 September 20X7 ? 23 380 3 650 19 730 11 140 30 870 900 320 860 4 200 165 4 695 11 140 ? 30 870 _____ 30 870 Gross profit b/d 11 140 Purchases Less Stock at 30 September 20X7 Cost of goods sol d Gross profit c/d Rent Insurance Motor vehicle expenses Wages General expenses Net profit Sales _____ 11 140 Question 3 B. Betty Trading and Profit & Loss Account for the year ended 30 June 20X5 ? 1 160 2 800 18 360 10 280 28 640 2 240 5 100 190 315 2 435 10 280 ? 28 640 _____ 28 640 Gross profit b/d 10 280 Purchases Less Stock at 30 June 20X5 Cost of goods sold Gross profit c/d Rent Wages Insurance Office expenses Net profit Sales ______ 10 280 26 Question 4 Ada Cheung Trading and Profit & Loss Account for the year ended 31 March 20X3 Purchases Less Stock at 31 March 20X3 Cost of goods sold Gross profit c/d Wages Rent Advertising Lighting and heating Sundry expenses Net profit ? 46 820 9 140 37 680 16 020 53 700 7 360 2 370 840 765 1210 3 475 16 020 Sales ? 53 700 _____ 53 700 Gross profit b/d 16 020 _____ 16 020 Question 5 (a) 1. Comparing performance with other businesses or with previous periods of time to see if the business is growing. Planning ahead – profits will all ow the firm to expand so information about how much profit has been made and how it was made will be important in deciding what to do in the future. To help the business to control and monitor its expenses. 2. 3. (b) This means that his cost of goods sold was more than the sales revenue; he sold the goods for less than he paid for them. 27 Chapter 7 The Balance Sheet Answers to ‘Think about it’ QuestionsPage 72 – Why the balance sheet is prepared at a specified date while the trading and profit and loss is prepared for a period of time. Because it shows the financial position of a business at a particular date and not for a particular period of time. It shows the value of assets and liabilities as they are at a specific date. Solutions to Target Practice Questions Question 1 1. Fixed assets are presented in order of decreasing permanence while current assets are presented in increasing order of liquidity. Question 2 J Robinson Balance Sheet at 31 March 20X7 ? Fix ed Assets Buildings Fixtures and fittings Motor vehicle ?Capital (missing figure) ? 47 020 35 000 2 860 6 400 44 260 Current Assets Stock Debtors Bank Cash 4 360 7 200 2 950 80 14 590 58 850 Current Liabilities Creditors Long-term Liabilities Loan 6 830 5 000 ______ 58 850 28 Question 3 Andrew Gordon Balance Sheet as at 31 December 20X2 ? Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 68 660 3 730 2 600 1 130 69 790 Current Liabilities Creditors 54 000 1 200 5 600 60 800 Current Assets Stock Debtors Bank 3 180 3 460 4 130 10 690 71 490 1 700 _____ 71 490 Question 4 A Darnell Balance Sheet as at 30 September 20X7 ?Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 34 555 4 695 3 200 1 495 36 050 Current Liabilities Creditors 24 000 850 4 200 29 050 Current Assets Stock Bank Cash 3 650 2 130 70 9 900 38 950 2 900 38 950 29 Question 5 B Betty Balance Sheet as at 31 June 20X5 ? Fi xed Assets Office furniture Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 7 500 2 435 1 230 1 205 8 705 Current Liabilities Creditors 1 870 650 2 800 ____ 3 450 2 800 2 360 1 890 75 _7,125 10 575 Current Assets Stock Debtors Bank Cash _____ 10 575 Question 6 Ada Cheung Balance Sheet as at 31 March 20X3 ?Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 68 335 3 475 3 700 __(225) 68 110 Current Liabilities Creditors 43 000 5 700 5 300 54 000 Current Assets Stock Debtors Bank 9 140 8 200 1 710 19 052 73 050 4 940 _____ 73 050 30 Chapter 8 Final Accounts with Further Considerations Answers to Activities Activity 8. 1 T Antonio Trading Account for the month ending 30 April 20X8 Opening Stock Purchases Add Carriage inwards Less Returns outwards Less Closing Stock Cost of goods sold Gross profit c/d ? 3 855 2 680 102 2 782 139 Sales Less Returns inwards Turnover ? 280 139 5 141 2 643 6 498 2 631 3 867 1 274 5 141 5 141 Solu tions to Target Practice Questions Question 1 (a) Carriage Inwards is associated with the cost of getting goods into the business and ready for resale so it is always added to the cost of purchases in the Trading Account. Carriage Outwards is a necessary cost of ‘distribution’ of sales to customers and so it is debited to the Profit & Loss Account with other expenses. (b) It is necessary to include returns inwards and returns outwards in the trading account to adjust the purchases and sales figures to find the amounts actually bought and sold. c) It shows the amount of resources a business has that can be readily turned into cash. 31 Question 2 R Knight Trading and Profit & Loss Account for the year ended 31 October 20X6 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening stock Purchases Add: Carriage inwards Net purchases Less: Closing stock Gross Profit Less: Expenses Carriage outwards Wages Sundry expenses Net Profit ? ? 120 500 740 119 760 15 200 75 400 2 150 77 550 92 750 13 600 79 150 40 610 3 200 28 500 2 230 33 930 6 680 32 Question 3T Pearl Trading and Profit & Loss Account for the year ended 31 August 20X7 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening stock Purchases Add: Carriage inwards Less Returns outwards Net purchases Less: Closing stock Gross Profit Add: Rent Receivable Less: Expenses Carriage Outwards Rent Payable Lighting and heating Telephone Net Profit ? ? 34 350 1 230 33 120 4 360 26 500 940 27 440 1 050 26 390 30 750 4 210 26 540 6 580 600 7 180 540 2 100 430 215 3 305 3 875 33 Question 4 P Franks Trading and Profit & Loss Account For the year ended 28 February 20X8 ?Sales Less: Returns Inwards Turnover Less: Cost of goods sold Opening stock Purchases Less: Returns outwards Net purchases Less: Closing stock Gross Profit Less: Expenses Lighting and heating Salaries and wages Sundry expenses Rent and rates Net Profit ? ? 221 300 5 200 216 100 12 600 155 400 6 650 148 750 161 350 16 100 145 250 70 850 3 900 48 500 4 650 2 300 59 350 11 500 34 P Franks Balance Sheet at 28 February 20X8 ? Fixed assets Premises Equipment Motor vehicle Current assets Stock Debtors Bank Cash Less: Current liabilities Creditors Net current assets Long-term liabilities Loan ? 04 000 28 000 21 000 153 000 16 100 23 750 960 76 40 886 15 716 25 170 178 170 32 000 146 170 Financed by: Capital Balance b/d Add: Net profit Less: Drawings 145 270 11 500 156 770 10 600 146 170 35 Question 5 T Williams Trading and Profit & Loss Account for the year ended 31 May 20X8 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening Stock Purchases Add: Carriage inwards Less: Returns outwards Net purchases Less: Closing stock Gross Profit Less: Expenses Wages and salaries Rent Insurance Sundry expenses Carriage Outwards Net Profit ? 139 200 430 138 770 27 230 103 500 630 104 130 960 103 170 130 400 30 580 99 820 38 950 15 320 5 400 325 475 2 340 23 860 15 090 36 T Williams Balance Sheet at 31 May 20X8 ? Fixed assets Buildings Fixtures and fittings Current assets Stock Debtors Bank Cash Less: Current liabilities Creditors Net current assets Long-term liabilities Loan Financed by: Capital balance b/d Add: Net profit Less: Drawings ? 32 000 4 250 36 250 30 580 21 460 4 450 195 56 685 12 240 44 445 80 695 15 000 65 695 62 005 15 090 77 095 11 400 65 695 37 Chapter 9 The Division of the Ledger and Books of Original Entry Answers to ‘Think about it’ QuestionsPage 93 – What have you noticed about the Cash Book? It is a Book of Original Entry as well as a Ledger. Answers to Activities Activity 9. 1 1. 2. 3. 4. 5. 6. General Ledger Sales Ledger General Ledger General Ledger General Ledger or Private Ledger General Ledger Solutions to Target Practice Questions Question 1 (a) They provide documentation (proof) that a transaction has occurred. (b) 1. 2. They save time as they summarise similar transactions for the period, resulting in less information and les s frequent postings to the General Ledger.They allow a business to have different individuals responsible for different journals therefore increasing internal control. Question 2 (a) Debtors Ledger (b) Creditors Ledger (c) Nominal Ledger Question 3 (a) (b) (c) (d) (e) Real Nominal Nominal Real Real Question 4 (a) (b) (c) (d) (e) (f) Cash Book Cash Book Cash Book Cash Book Purchases Day Book Cash Book 38 Chapter 10 Bank Facilities Answers to Activities Activity 10. 1 Payee Cheque number Drawer Counterfoil Crossed cheque Mary White is writing a cheque for ? 200 to John Blue.As she is the drawer she must make sure that she signs the cheque. Her book-keeper told her to always fill out the counterfoil so she will have a record of the payment. As the cheque number is on the counterfoil as well as the cheque it will help her to trace the payment. She has decided to give John a crossed cheque as she is worried that the cheque might get lost. John is not very happy about this. As he is the p ayee it means he will not be able to get the money from the bank immediately. Solutions to Target Practice Questions Question 1 Bank 20X7 ? 45 December 15 December 22 20X7 November 30 Interest receivable Interest payable Bank charges ? 320 45 Interest Receivable 20X7 November 30 Bank ? 145 20X7 December 15 Bank Interest Payable ? 320 20X7 December 22 Bank Bank Charges ? 45 Question 2 A bank overdraft occurs when the bank allows a current account holder to withdraw more money from the account than is actually in the account. For example, the account holder only has ? 800 in the account but with the permission of the bank is allowed to withdraw up to a maximum of ? 1500. 39 Question 3A standing order is used for payments of fixed amounts at regular intervals at the request of the account holder while a direct debit is made at the request of the payee (the person/organisation that is owed) and can be used for either fixed or changing amounts and for payments at irregular intervals. Que stion 4 (a) Interest receivable is the interest received on the balance of an interest bearing account; the amount the bank pays the account holder for the use of the money in the account. (b) Interest payable is the cost of borrowing; it is the payment to the lender (the bank) for the use of its money. c) Bank charges is a charge by a bank for the services it provides. Question 5 (a) (b) (c) (d) Direct Debit Credit transfer Standing order Dividend Question 6 (a) 1. 2. Current account Deposit account (b) Current accounts do not always earn interest, deposit accounts do. Question 7 (a) (b) (c) (d) ? 2738. 57 – ? 206. 05 = ? 2532. 52 Credit column Credit transfer Loan repayment through a standing order 40 Chapter 11 Cash Books Answers to ‘Think about it’ Questions Page 111 – Is it possible for the cash columns to have a credit balance? Give reasons for your answer. No – because it is impossible to spend more cash than is available.If the business has cash in hand of only ? 50 then it cannot spend more than this amount. Solutions to Target Practice Questions Question 1 (a) As a book of original entry it is the first place where all the cash and cheque transactions are recorded; it is also one side of the double entry. (b) Where the debit and credit entries for a transaction are in the same ledger or book. Question 2 F. Patel – Cash Book Bank 20X3 Details ? Bank (C) Nov 02 Rent 2 800 Nov 03 Purchases Nov 07 Stationery 230 Nov 10 Wages Nov 12 Cash (C) 200 Nov 14 Carriage in Nov 20 Drawings Nov 26 Bank (C) Nov 28 Purchases Nov 30 Balances c/d †¦Ã¢â‚¬ ¦..Nov 30 3 230 2 130 20X3 Nov 01 Nov 02 Nov 14 Nov 17 Nov 23 Nov 28 Details Capital Cash (C) Bank (C) Sales Sales Cash (C) Cash ? 3 000 160 220 Cash ? 2 800 46 120 Bank 140 370 160 34 60 200 120 3 380 430 2 130 3 230 Dec 1 Balances b/d †¦Ã¢â‚¬ ¦.. 3 380 120 41 Question 3 T. Karekla – Cash Book Cash Bank 20X9 Details ? ? Motor vehicle 6 000 July 3 150 Cash (C) Ju ly 4 Rent 2 000 July 8 100 Purchases July 10 390 Carriage in July 18 Cash (C) 540 July 20 Purchases 300 July 24 Wages July 24 Bank (C) July 30 Balances c/d July 31 ___ ____ 640 8 840 95 4 460 0X9 July 1 July 4 July 15 July 20 July 23 July 29 July 30 Details Capital Bank (C) Loan Bank (C) Sales Sales Cash (C) Cash ? 85 Bank ? 3 000 150 460 40 100 20 300 95 670 100 4 460 8 840 Aug 1 Balances b/d Question 4 Maria Metaxa – Cash Book Cash Bank 20X7 DETAILS ? 65 ? 3 196 2 610 1 250 2 730 2 945 1 760 Feb 02 Feb 06 Feb 06 Feb 12 Feb 12 Feb 15 Feb 16 Feb 19 Feb 21 Feb 25 Feb 27 Feb 28 Feb 28 Feb 28 Postage Purchases Wages Cash (C) Wages Electricity Stationery Wages Travelling expenses Telephone Wages P Barratt D Smart Balances c/d 20X7 Feb 01 Feb 04 Feb 08 Feb 10 Feb 12 Feb 19 Feb 23DETAILS Balances b/d Sales D Pole Sales Bank (C) Sales E Holme Discount Allowed ? 30 Discount Received ? Cash ? 50 Bank ? 1 075 2 167 100 1 964 53 100 40 38 1 840 19 132 1 920 1 240 2 145 1 855 14 491 __ 7 0 Mar 1 Balances b/d ___ 165 58 _____ 14 491 1 855 20 55 __ 75 58 165 (b) Discount Allowed ? Total for the month 70 20X7 February 28 42 Discount Received 20X7 February 28 Total for the month ? 75 Question 5 (a) 20X2 Oct 01 Oct 02 Oct 10 Oct 12 Oct 18 Oct 20 Oct 21 Oct 21 Oct 26 DETAILS Balances b/d P Mace Sales G Lai Bank (C) Sales Loan interest Cash (C) B Chalke Discount Allowed ? 150 1 120 60 16 1 120 704 Sally Foon – Cash Book Cash Bank 20X2 DETAILS ? 68 ? 160 2 086 560 Oct 01 Oct 12 Oct 14 Oct 16 Oct 18 Oct 21 Oct 22 Oct 22 Oct 24 Oct 28 Oct 30 Oct 30 Oct 31 Balances b/d W Eastern Stationery F Samway Cash (C) Bank (C) Wages G Lai Telephone Office Expenses L. Hall Interest paid Balances c/d Discount Received ? Cash ? 35 4 1 120 35 560 147 40 13 __ 17 247 20 1 618 14 491 86 150 Bank ? 1 692 75 __ 24 Nov 1 Balances b/d ____ 1 398 203 _____ 4 630 1 618 203 1 398 (b) The ? 24 discount allowed will be posted to the debit side of the discount allowed account.The ? 17 discount re ceived will be posted to the credit side of the discount received account. (c) 20X2 October 31 Discount Allowed ? Total for the month 24 Discount Received 20X2 October 31 Total for the month ? 17 43 Chapter 12 The Sales and Purchases Day Books Answers to ‘Think about it’ Questions Page 125 – Why do you think the invoice numbers are not sequential in S French’s Purchases Day Book? Because S French has not assigned unique numbers to each invoice but is instead using the invoice numbers as received from the different sellers.Solutions to Target Practice Questions Question 1 (a) Sales Day Book Date 20X8 Oct 01 Oct 04 Oct 09 Oct 15 Oct 23 Oct 29 Oct 31 Details F Law G Harding S Wilks L Ryle F Law G Harding Transferred to Sales Account Net Amount ? 612 436 370 810 354 508 3 090 (b) Sales Ledger 20X8 October 01 F Law ? 612 Sales 20X8 October 04 Sales G Harding ? 436 20X8 October 09 Sales S Wilks ? 370 44 L Ryle 20X8 October 15 Sales ? 810 20X8 October 23 Sales F Law ? 354 20X8 October 29 Sales k G Harding ? 508 General Ledger (c) Sales 20X8 ? October 30 Credit sales for the month 3 090 Question 2 (a)Sales Day Book Date 20X5 July 02 July 07 July 12 July 18 July 23 July 30 July 31 Details D Smith T Ronald N Smithers L Malt D Smith T Ronald Transferred to Sales Account Net Amount ? 488 480 256 186 221 435 2 066 (b) Sales Ledger 20X5 July 02 D Smith ? 488 Sales 45 20X5 July 07 July 30 Sales Sales T Ronald ? 480 435 N Smithers ? 256 20X5 July 12 Sales 20X5 July 18 Sales L Malt ? 186 20X5 July 23 Sales D Smith ? 221 General Ledger Sales 20X5 July 31 Credit sales for the month ? 2 066 Question 3 (a) Purchases Day Book Date 20X3 April 01 April 03 April 10 April 14 April 21 April 27 April 30