Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

Grade ( 12 )
Trimester [2] Exam Academic Year
2024 - 2025

Subject Material Covered

Accounting 1. T2W04: Chapter 7 "Posting Journal Entries to General Ledger

Accounts" Section 2 "The Posting Process".

2. T2W05: Chapter 7 "Posting Journal Entries to General Ledger

Accounts" Section 3 "Preparing a Trial Balance".

3. T2W06: Chapter 8 "The Six-Column Work Sheet" Section 1

"Preparing the Work Sheet".

4. T2W07: Chapter 8 "The Six-Column Work Sheet" Section 2

"Completing the Work Sheet".
 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

Q1: Prepare a worksheet for GreenScape Landscaping for the period ended December 31, 2025:
All amounts in $
10 Cash in Bank
1 4,500
10 Accounts Receivable - Smith Co.
5 600
11 Accounts Receivable - Johnson Inc.
0 450
11 Office Supplies
5 700
12 Landscaping Equipment
0 8,000
20 Accounts Payable- Evergreen Supplies
1 1,200
20 Accounts Payable - GardenPro Equipment
3 2,800
30 Ryan Patel, Capital
1 18,750
30 Ryan Patel, Withdrawals 1,500
5
31 Income Summary ----------
0
40 Service Revenue 7,000
1
50 Advertising Expense
1 2,000
50 Maintenance Expense
5
1,200
51 Rent Expense
0 3,000

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

51 Utilities Expense
5 1,800
52 Salaries Expense
0 5,000
52 Insurance Expense
5 1,000

GreenScape Landscapin
Worksheet
for the month ended December 31, 2025
Acc.No. Account Name Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit

101 Cash in Bank 4,500 4,500

105 Accounts Receivable - Smith Co. 600 600
110 Accounts Receivable - Johnson Inc. 450 450
115 Office Supplies 700 700
120 Landscaping Equipment 8,000 8,000
201 Accounts Payable- Evergreen Supplies 1,200 1,200
203 Accounts Payable - GardenPro
2,800 2,800
Equipment

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

301 Ryan Patel, Capital 18,750 18,750
305 Ryan Patel, Withdrawals 1,500 1,500
310 Income Summary --------- --------- --------- --------- --------- ---------
401 Service Revenue 7,000 7,000
501 Advertising Expense 2,000 2,000
505 Maintenance Expense 1,200 1,200
510 Rent Expense 3,000 3,000
515 Utilities Expense 1,800 1,800
520 Salaries Expense 5,000 5,000
525 Insurance Expense 1,000 1,000

29,750 29,750
14,000 7,000 15,750 22,750
Net Loss 7,000 7,000

29,750 29,750
14,000 14,000 22,750 22,750

Q2: Prepare a worksheet for Wilderness Rentals for the period ended May 31, 2025:
All amounts in $
10 Cash in Bank 5,814
1
10 Accounts Receivable - Helen Katz 717
5
11 Accounts Receivable - Polk and Co. 590
0
11 Office Supplies 847
5
12 Office Equipment 4,360
0
4
 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

12 Camping Equipment 6,130
5
20 Accounts Payable- Adventure Equipment Inc. 1,680
1
20 Accounts Payable - Digital Tech Computers 3,554
3
20 Accounts Payable - Greg Mollaro 635
5
30 Ronald Hicks, Capital 12,760
1
30 Ronald Hicks, Withdrawals 1,200
5
31 Income Summary -----
0
40 Equipment Rental Revenue 9,716
1
50 Advertising Expense 1,940
1
50 Maintenance Expense 1,083
5
51 Rent Expense 3,500
5
52 Utilities Expense 2,164
5

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

Wilderness Rentals
Worksheet
for the month ended May 31, 2025
Acc.No. Account Name Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit

101 Cash in Bank 5,814 5,814

105 Accounts Receivable - Helen Katz 717 717
110 Accounts Receivable - Polk and Co. 590 590
115 Office Supplies 847 847
120 Office Equipment 4,360 4,360
125 Camping Equipment 6,130 6,130
201 Accounts Payable- Adventure 1,680 1,680
Equipment Inc.
203 Accounts Payable - Digital Tech 3,554 3,554
Computers
205 Accounts Payable - Greg Mollaro 635 635
301 Ronald Hicks, Capital 12,760 12,760
305 Ronald Hicks, Withdrawals 1,200 1,200
310 Income Summary ----- ----- ----- ----- ----- -----
401 Equipment Rental Revenue 9,716 9,716
501 Advertising Expense 1,940 1,940
505 Maintenance Expense 1,083 1,083
515 Rent Expense 3,500 3,500
525 Utilities Expense 2,164 2,164
28,345 28,345
8,687 9,716 19,658 18,629
Net Income
1,029 1,029

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

28,345 28,345
9,716 9,716 19,658 19,658

Q3.A The following General Journal summarizes the transactions during October, 2024 at Roadrunner
Delivery Service; Post “Cash-101 and Accounts Payable-201” into separate General Ledger.

Date Description Debit Credit

2024 Cash 12,000
Oct. 1 Maria’s Capital 12,000
Memorandum 40
2024 Office Equipment 10,000
Oct. 5 Cash 4,000
Accounts Payable 6,000
Invoice 120/ Check 70
2024 Cash 1,600
Oct. 8 Revenue 1,600
Receipt 121
2024 Advertising Expense 75
Oct. 10 Cash 75
Check 71
2024 Withdrawals 900
Oct. 13 Cash 900
Check 72
2024 Accounts Receivable 400
Oct. 17 Revenue 400
Receipt 2
2024 Accounts Payable 2,500
Oct. 18 Cash 2,500
Check 73
2024 Office Equipment 350
Oct. 20 Maria’s Capital 350
Memorandum 41
2024 Rent Expense 600
Oct. 22 Cash 600
Check 74
2024 Car wash Equipment 1,500
Oct. 24 Accounts Payable 1,500
Invoice 122
2024 Cash 400
Oct. 26 Accounts Receivable 400
Memorandum 42
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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

2024 Accounts Payable 2,500
Oct. 30 Cash 2,500
Check 75

General Journal

Account Name: Cash Account Number: 101

Date Description Post. Debit ($) Credit ($) Balance

Ref.
Debit Credit
2024 Memorandum 40 G1 12,000 12,000
Oct.1
2024 Check 70 G1 4,000 8,000
Oct. 5

2024 Receipt 121 G1 1,600 9,600

Oct. 8

2024 Check 71 G1 9,525

Oct. 10 75

2024 Check 72 G1 8,625

Oct. 13 900

2024 Check 73 G1 6,125

Oct. 18 2,500

2024 Check 74 G1 5,525

Oct. 22 600

2024 Memorandum 42 G1 400 5,925

Oct. 26

2024 Check 75 G1 3,425

Oct. 30 2,500

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

Account Name: Accounts Payable Account Number: 201

Date Description Post. Ref. Debit ($) Credit ($) Balance

Debit Credit
2024 Invoice 120 G1 6,000 6,000
Oct. 5

2024 G1 2,500 3,500

Oct. C
18 heck 73
2024 Invoice 122 G1 5,000
Oct. 1,500
24
2024 G1 2,500 2,500
Oct. Chec
30 k 75

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

Q3. B: After computing Cash and Accounts Payable from Q3.A use the following data to; Prepare a Trial
Balance using the above information for the heading.
Accounts Receivable $0
Rent Expense $600
Equipment $11,850
Advertising Expense $75
Maria’s Withdrawals $900
Revenue $2,000
Income Summary -----
Maria’s Capital $12,350

Roadrunner Delivery Service

Trial Balance

October 30, 2024

Account Name Debit Credit

Cash 3,425
Accounts Receivable ----------
Equipment 11,850
Accounts Payable 2,500
Maria’s Capital 12,350
Maria’s Withdrawals 900
Income Summary ------ -------
Revenue 2,000
Rent Expense 600
Advertising Expense 75

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

Totals 16,850 16,850

Q4: Short Answer Questions:

1) What is the purpose of a work sheet in accounting?

A work sheet is a working paper used to collect information from the ledger accounts for use in completing end-
of-period activities. It organizes information for financial reports.

2) Name the five sections of a work sheet.

The five sections are: the heading, the Account Name section, the Trial Balance section, the Income Statement
section, and the Balance Sheet section.

3) What is the significance of ruling a single line in the trial balance section?

A single line drawn under the balance columns indicates that the columns are ready to be totaled.

4) How do you determine net income or net loss on a work sheet?

Net income or net loss is determined by subtracting total expenses from total revenues (Net Income/Loss = Total
Revenues - Total Expenses).

5) Explain the difference between a transposition error and a slide error.

A transposition error is when two numbers are reversed (e.g., $469 written as $496).

A slide error is when a decimal point is moved by mistake (e.g., $25,000 instead of $2,500).

6) What is the purpose of posting in accounting?

Posting is the process of transferring information from the journal to individual accounts in the ledger.

7) Describe the process of correcting an error in a journal entry that has already been posted.

When an error in a Journal entry is discovered after posting you make a correcting entry to fix the error.

8) How do you compute a new account balance when posting transactions?

When posting, if both the existing account balance and the posted amount are debits or credits, you add them. If
one is a debit and the other is a credit, you subtract them.

9) What is the fifth step in the accounting cycle, and why is it important?

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 Global Paradigm International School

2024/2025 Accounting Review Pack Answer Social Sciences Department

The fifth step is preparing a trial balance. It's important to ensure that total debits equal total credits, verifying the
accuracy of the ledger.

10) What is the difference between net income and net loss?

Net income is the amount of revenue that remains after expenses for the period have been subtracted. Net loss is
when the expenses are greater than the revenue.

11) How do you correct an error in the account ledger after posting, when the journal entry is correct?

You draw a single line through the incorrect item and write the correction directly above it.

12) Explain the process of totaling the income statement and balance sheet sections.

A single rule is drawn across the four debit and credit columns of the income statement and balance sheet
indicating that the columns are ready to be added or totaled. Then the columns are totaled.

13) What is the purpose of a trial balance?

The purpose of a trial balance is to prove that total debits equal total credits.

14) How do you handle accounts with a zero balance in the trial balance section?

A line is drawn through the normal balance column of accounts with a zero balance.

15) What is the main idea behind posting journal entries to general ledger accounts?

The main idea is to transfer information from the journal to individual accounts in the ledger, providing a clear
picture of how transactions change account balances.

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