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ICB Level 2 Assessment - Balance Ledger

  • 4 posts
  • # 113246

Hi All,

I am a newbie and recently started the the ICB Level 2 certificate through Open Study College. I am not grapsing the concept of manual bookkeeping 100% yet and I find that the study materials does not cover everything. I have done a lot of research and used other materials to complete the first assessment.

I would REALLY appreciate some assistance with the question below. To my untrained eye it appears that both of the ledger accounts are balanced correctly. Would really appreciate a sanity check from someone with a bit more experience Wink

  • 75 posts
  • # 113250

Hello Nadia

Account a) is the correct as although both balance, you need to look at what each account represents and where the double entry will be. As you are dealing with purchases then credit purchases will make Masons Ltd a Creditor which should have a Cr. balance as a) does. Also, look at other items in the account, if you bought goods for resale from Masons Ltd you would:

Dr. Purchases

Cr. Masons Ltd (PLCA/Creditors)

And if you were making a payment to Masons Ltd you would:

Cr. Bank

Dr. Masons Ltd (PLCA/Creditors)

This is all happening correctly in account a). Likewise the opposite can be said of account b).

I hope this makes sense.

Dean

  • 4 posts
  • # 113255

Thank you Dean Smile

  • 4 posts
  • # 113265

 

May I please ask for someone to please check my answer below. Original question is below. TIA

 

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  • 7 posts
  • # 113267

> Hi Nadia, I'm just about to take my exam with Open Study. The returned cheque should be on the debit side I believe. When you banked it in the cash book you will have debited the bank and credited the sales ledger/memorandum account. When it bounced you need to reverse this credit the bank (as money wasn't really in) and debit the sales ledger as this debtor balance hasn't been reduced.
>
>

  • 4 posts
  • # 113281

Hi bexwilliams2001,

Thank you so much for your time in explaining this. Good luck with your exam! Laughing

 

Nadia

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