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Manual Bookeeping

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Introduction

Scenario Phillipa and Martin Daniels own a number of holiday cottages which they rent out. They are three quarters of the way through their first year of trading which ends on 31 December. The following table shows the weekly hire charges for each cottage: Hire Charges For Each Cottage For One Week (Exclusive Of VAT At 17.5%) Raven's Retreat (Sleeps 2 Persons) � The Strawberry Patch (Sleeps 3 Persons) � The Beehive (Sleeps 4 Persons) � Robin's Roost (Sleeps 6 Persons) � October-March 100.00 125.00 150.00 200.00 April and May 125.00 140.00 150.00 225.00 June and July 200.00 250.00 300.00 400.00 August 300.00 400.00 500.00 600.00 September 200.00 250.00 300.00 400.00 Invoices are sent out at the time of booking. Where a booking is for a single cottage for one week, VAT is added onto the hire charge for that week. However, where more than one cottage is booked for the same week, or where one cottage is booked for more than one week at a time, a discount of 5% is taken off the total of the invoice, before VAT is added on at 171/2% Phillipa keeps a file with all her invoices, bills she has paid, and receipts for small items. ...read more.

Middle

Cheque No: 567 78 75 931 69 Sept 01 Caches Ltd - Cheque No: 568 30 62 901 07 Sept 15 BT - Cheque No: 569 26 25 874 82 Bank Account DR CR Balance Date Details � P � P � P July 01 Balance b/f 1358 05 July 07 Mr and Mrs F Minder - Cheque 613 93 1971 98 July 20 Bowles Supplies Ltd - Cheque 345 67 1625 91 July 22 Mr and Mrs C Poulter - Cheque 470 00 2095 91 July 25 Mr and Mrs M Sutley 1004 62 3100 93 Aug 04 SW Electricity - Cheque No: 567 528 75 2575 18 Sept 01 Caches Ltd - Cheque No: 568 205 62 2366 56 Sept 15 BT - Cheque No: 569 176 25 2190 31 Sept 30 S Pinter - Cheque No: 570 250 00 1940 31 Sept 30 Drawing - Cheque No: 571 900 00 1049 31 Sept 30 S Pinter - Cheque No: 572 40 00 1000 31 Fixtures Account DR CR Balance Date Details � P � P � P July 01 Balance b/f 1000 00 July 03 Bowles Supplies Ltd - Invoice No: 256 68 00 1068 00 July 07 Bowles Supplies Ltd ...read more.

Conclusion

�117.50 * 7 = 822.50 822.50/47 = 17.50 *) �117.50 + �17.50 = �135.00 �670 exc VAT *) �670 * 7 = 4690 4690/47 = 99.7872 = 99.78 *) �670 - �99.78 = �570.22 �2467.50 inc VAT *) �2467.50 * 7 = 17272.50 17272.50/47 = 367.50 *) �2467.50 + 367.50 =�2835.00 What ledgers would be used for the following sales transaction and how much would be entered in to each ledger? An Invoice was sent to Mr. Jones for �1292.50 inc VAT * VAT Account Ledger = �192.50 * Sales Ledger - Mr Jones = �1485 * Sales Account Ledger = �1292.50 As a book-keeper list two reasons why it is vital that you keep all financial records secure. * It is vital to keep all financial records secure to retain my own integrity and reputation. No one should be able to access them without my knowlege just in case they have ulterior motives - embezzlement, tax defrauding, etc. * It is also vital to keep all records of financial transactions whether on paper or computer for tax record purposes, company accounts, to ensue that I keep a proper level of liquidity, maintain a proper level of cash-flow, and ensue that solvency is maintained. 1 ...read more.

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