Acca financial Accounting (FA) Study Text ac ca (FA)

Chapter 3 

KAPLAN PUBLISHING

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Chapter summary 

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Double entry bookkeeping 

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KAPLAN PUBLISHING

 

Test your understanding answers 

Test your understanding 1 

The cash transactions are recorded in total as follows: 

Dr Bank $48,820 

Cr C Monet $10,000 

Cr V V Goch $25,000 

Cr P Picasso $13,700 

Cr Interest income $120 

Test your understanding 2 

1 

Dr Closing inventory (statement of financial position) $2,750 

Cr Closing inventory (cost of sales) $2,750 

To record the closing inventory of vodka. 

2 

Dr Depreciation expense $6,000 ($150,000/25 yrs) 

Cr Accumulated depreciation $6,000 

To record depreciation on the restaurant lease. 

3 

Dr Irrecoverable debt expense $350 

Cr Receivables – V Shady $350 

To record the write

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off of a debt outstanding from V Shady. 

4 

Dr Fixtures and Fittings cost $1,200 

Cr Cash $1,200 

To record the purchase of two sofas for the bar. 

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KAPLAN PUBLISHING

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Recording basic 

transactions and 

balancing the ledgers