Exercise 3.

1 Recording in the General Ledger - Reap and Sow

a

Analysing Chart

Date Accounts affected Classification Increase/ Debit $ Credit $

(A/L/Oe/R/E) Decrease

b
General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 1 Cambridge University Press, 2019

 Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Prepaid rent expense (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Office furniture (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Advertising (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Computer (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 2 Cambridge University Press, 2019

c

Explanatio
n

Accounting assumption
Explanation

© Simmons & Hardy 3 Cambridge University Press, 2019

Exercise 3.2 Recording in the General Ledger - Quick Perk
a

Analysing Chart

Date Accounts affected Classification Increase/Decrease Debit $ Credit $

(A/L/Oe/R/E)

b
General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 4 Cambridge University Press, 2019

 Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Premises (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Mortgage (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Wages (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Drawings (–Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Prepaid advertising (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 5 Cambridge University Press, 2019

c

Explanatio
n

Explanatio
n

© Simmons & Hardy 6 Cambridge University Press, 2019

Exercise 3.3 Cash sales in the General Ledger - Melita Mows
a

Explanatio
n

Analysing Chart

Date Accounts affected Classification Increase/Decrease Debit $ Credit $

(A/L/Oe/R/E)

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© Simmons & Hardy 8 Cambridge University Press, 2019
c
General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Vehicle (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Prepaid rent expense (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 9 Cambridge University Press, 2019

 Sales (R)

Date Cross-reference Amount $ Date Cross-reference Amount $

Cost of Sales (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Wages (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Increase/Decrease/No effect Amount $

Assets
Liabilities
Owner’s equity

Explanatio
n

Calculation

Gross Profit $

© Simmons & Hardy 10 Cambridge University Press, 2019

© Simmons & Hardy 11 Cambridge University Press, 2019
Exercise 3.4 Cash and credit sales in the General Ledger - Monaro

Motors

a
Analysing Chart

Date Accounts affected Classification Increase/Decrease Debit $ Credit $

(A/L/Oe/R/E)

b
© Simmons & Hardy 12 Cambridge University Press, 2019
 General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Premises (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Mortgage – QV Bank (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Sales (R)
© Simmons & Hardy 13 Cambridge University Press, 2019
 Date Cross-reference Amount $ Date Cross-reference Amount $

Cost of Sales (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Shelving (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Receivable (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 14 Cambridge University Press, 2019

 Wages (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Drawings (–Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Explanatio
n

Purpose

e
MONARO MOTORS
Trial Balance as at 9 August 2025

Account Debit $ Credit $

© Simmons & Hardy 15 Cambridge University Press, 2019

 Totals

© Simmons & Hardy 16 Cambridge University Press, 2019

Exercise 3.5 Opening balances in the General Ledger - Hot Doggies
a/b

General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Receivable (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 17 Cambridge University Press, 2019

 Shelving (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Computer (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Loan – CF Bank (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 18 Cambridge University Press, 2019

 Sales (R)

Date Cross-reference Amount $ Date Cross-reference Amount $

Cost of Sales (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Wages (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Explanatio
n

© Simmons & Hardy 19 Cambridge University Press, 2019

d
Effect

e
HOT DOGGIES
Trial Balance as at 12 June 2025

Account Debit $ Credit $

Totals

© Simmons & Hardy 20 Cambridge University Press, 2019

f
Error

© Simmons & Hardy 21 Cambridge University Press, 2019

Exercise 3.6 Opening balances in the General Ledger - Bright Camping
a/b

General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Receivable (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 22 Cambridge University Press, 2019

 Shop fittings (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Premises (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Loan – Highland Bank (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 23 Cambridge University Press, 2019

 Sales (R)

Date Cross-reference Amount $ Date Cross-reference Amount $

Cost of Sales (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Loan – Punkah CC (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Advertising (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Wages (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 24 Cambridge University Press, 2019

c

Explanatio
n

d
Explanatio
n

BRIGHT CAMPING
Trial Balance as at 10 October 2025

Account Debit $ Credit $

© Simmons & Hardy 25 Cambridge University Press, 2019

 Totals

f
Error 1

Error 2

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Exercise 3.7 Identifying transactions - Perfect Photographs
a

Date Transaction

Calculation

Mark-up %

© Simmons & Hardy 27 Cambridge University Press, 2019

c
PERFECT PHOTOGRAPHS
Trial Balance as at 8 December 2025

Account Debit $ Credit $

Totals

d
Statement
Justificatio
n

e
Explanatio
n

© Simmons & Hardy 28 Cambridge University Press, 2019

© Simmons & Hardy 29 Cambridge University Press, 2019
f
Account Debit $ Credit $

© Simmons & Hardy 30 Cambridge University Press, 2019

Exercise 3.8 Transactions to reports - Turning Points
a

Calculation

Capital $

b/c

General Ledger
Bank (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 31 Cambridge University Press, 2019

 Inventory (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Accounts Receivable (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Office equipment (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

Premises (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 32 Cambridge University Press, 2019

 Accounts Payable (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Mortgage – JH Finance (L)

Date Cross-reference Amount $ Date Cross-reference Amount $

Capital (Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

Sales (R)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 33 Cambridge University Press, 2019

 Cost of Sales (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Electricity (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Wages (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Interest expense (E)

Date Cross-reference Amount $ Date Cross-reference Amount $

Drawings (–Oe)

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 34 Cambridge University Press, 2019

 Prepaid advertising (A)

Date Cross-reference Amount $ Date Cross-reference Amount $

TURNING POINTS
Trial Balance as at 31 July 2025

Account Debit $ Credit $

Totals

© Simmons & Hardy 35 Cambridge University Press, 2019

e
Accounting assumption
Explanation

f
Overstated/Understated/No effect Amount $
Assets
Liabilities
Owner’s equity

TURNING POINTS
Income Statement for July 2025

$ $
Revenue

Less Cost of Goods Sold

Gross Profits

Less Other expenses

Net Profit

© Simmons & Hardy 36 Cambridge University Press, 2019

h
TURNING POINTS
Balance Sheet as at 31 July 2025

$ $ $ $
Current Assets Current Liabilities

Non-Current Liabilities

Non-Current Assets
Owner’s equity

Total Assets Total Equities

i
Qualitative characteristic
Explanation

© Simmons & Hardy 37 Cambridge University Press, 2019