,Clarke 7e
Accounting: An introduction to
principles and practice
SOLUTIONS MANUAL
©Cengage Learning Pty Ltd 2011
,Accounting: An introduction to principles and practice, 7e. Solutions Manual 1
Chapter 1 Accounting: its foundations
Question 1.1
Across: 2 non current; 5 current liability; 8 accrual; 10 profit; 11 interpreting; 12 users;
15 analysing; 16 external; 17 revenue; 18 process. Down: 1 current asset; 3 owners equity;
4 accounts payable; 6 internal; 7 service; 9 collecting; 13 expense; 14 assets.
Question 1.2
Across: 2 creditors; 5 debtors; 6 stationery; 10 office equipment; 11 accounts receivable;
14 postage; 15 stock on hand; 16 drawings; 17 loan; 19 machinery; 20 computers;
21 inventory. Down: 1 mortgage; 3 cash; 4 land; 7 accounts payable; 8 cash at bank;
9 motor vehicles; 12 capital; 13 building; 18 stock.
Question 1.3
Across: 1 materiality; 3 disclosure; 4 continuity; 6 historical cost; 9 consistently;
11 conservatism; 12 Australian; 15 one year; 16 cost. Down: 2 indefinitely; 5 going concern;
7 entity; 8 monetary; 10 period; 13 laws; 14 all.
Question 1.4
Across: 2 public; 5 financial statements; 7 users; 8 accrual; 10 corporations;
11 enforceability; 14 framework; 15 external; 16 balance sheet; 17 companies; 19 accrual;
20 assumptions. Down: 1 AASB; 3 consistency; 4 fair; 6 income statement; 9 going concern;
12 international; 13 entity; 14 financial; 18 IASB.
Question 1.5
Across: 5 unlimited; 6 partners; 8 agreement; 9 silent; 12 shareholders; 13 partnership;
14 sole trader; 15 limited. Down: 1 corporations; 2 ltd; 3 directors; 4 pty; 7 shares;
10 proprietary; 11 registered; 13 public.
Question 1.6
a. deposited, cashed; b. payee, drawer
Question 1.7
23 February 20 15
Natural Australia Bank
TO L Reyes 23 February 20 15
NITROGEN BRANCH
PAY L Reyes OR BEARER
FOR Inventory
purchased THE SUM OF Ninety nine dollars only $ 99.00
$ 99.00 D HAREN D Haren
823191 ".823191 ".078"474" :156".8087".
23 February 20 15 Natural Australia Bank
TO LJ Booker NITROGEN BRANCH 23 February 20 15
PAY L J Booker OR BEARER
FOR Rent for March
THE SUM OF Two hundred and twenty dollars only $ 220.00
$ 220.00 D HAREN
D Haren
823192 :156".8087".
".823192 ".078"474"
, Accounting: An introduction to principles and practice, 7e. Solutions Manual 2
23 February 20 15 Natural Australia Bank
TO Wages NITROGEN BRANCH
23 February 20 15
PAY Wages OR BEARER
FOR Wages, week
ended 22 February THE SUM OF Nine hundred and ninety dollars only $ 990.00
$ 990.00 D HAREN
D Haren
823193 :156".8087".
".823193 ".108"474"
Question 1.8
10 August 20 15 Natural Australia Bank
TO Wages NITROGEN BRANCH 10 August 20 15
PAY Wages OR BEARER
FOR Wages for the
period THE SUM OF Six hundred and forty dollars $ 640.00
$ 640.00 A ROSSANA
A Rossana
533234 :156".8087".
".533234 ".078"474"
15 August 20 15 Natural Australia Bank
Telstra NITROGEN BRANCH
TO 15 August 20 15
PAY Telstra OR BEARER
FOR Telephone account
THE SUM OF Three hundred and nineteen dollars only $ 319.00
$ 319.00 A ROSSANA
A Rossana
533235 :156".8087".
".533235 ".078"474"
21 August 20 15 Natural Australia Bank
TO Roads & Traffic NITROGEN BRANCH 21 August 20 15
Authority
PAY Roads & Traffic Authority OR BEARER
FORVehicle
registration THE SUM OF Five hundred and sixty one dollars only $ 561.00
$ 561.00 A ROSSANA
A Rossana
533236 :156".8087".
".533236 ".078"474"
Accounting: An introduction to
principles and practice
SOLUTIONS MANUAL
©Cengage Learning Pty Ltd 2011
,Accounting: An introduction to principles and practice, 7e. Solutions Manual 1
Chapter 1 Accounting: its foundations
Question 1.1
Across: 2 non current; 5 current liability; 8 accrual; 10 profit; 11 interpreting; 12 users;
15 analysing; 16 external; 17 revenue; 18 process. Down: 1 current asset; 3 owners equity;
4 accounts payable; 6 internal; 7 service; 9 collecting; 13 expense; 14 assets.
Question 1.2
Across: 2 creditors; 5 debtors; 6 stationery; 10 office equipment; 11 accounts receivable;
14 postage; 15 stock on hand; 16 drawings; 17 loan; 19 machinery; 20 computers;
21 inventory. Down: 1 mortgage; 3 cash; 4 land; 7 accounts payable; 8 cash at bank;
9 motor vehicles; 12 capital; 13 building; 18 stock.
Question 1.3
Across: 1 materiality; 3 disclosure; 4 continuity; 6 historical cost; 9 consistently;
11 conservatism; 12 Australian; 15 one year; 16 cost. Down: 2 indefinitely; 5 going concern;
7 entity; 8 monetary; 10 period; 13 laws; 14 all.
Question 1.4
Across: 2 public; 5 financial statements; 7 users; 8 accrual; 10 corporations;
11 enforceability; 14 framework; 15 external; 16 balance sheet; 17 companies; 19 accrual;
20 assumptions. Down: 1 AASB; 3 consistency; 4 fair; 6 income statement; 9 going concern;
12 international; 13 entity; 14 financial; 18 IASB.
Question 1.5
Across: 5 unlimited; 6 partners; 8 agreement; 9 silent; 12 shareholders; 13 partnership;
14 sole trader; 15 limited. Down: 1 corporations; 2 ltd; 3 directors; 4 pty; 7 shares;
10 proprietary; 11 registered; 13 public.
Question 1.6
a. deposited, cashed; b. payee, drawer
Question 1.7
23 February 20 15
Natural Australia Bank
TO L Reyes 23 February 20 15
NITROGEN BRANCH
PAY L Reyes OR BEARER
FOR Inventory
purchased THE SUM OF Ninety nine dollars only $ 99.00
$ 99.00 D HAREN D Haren
823191 ".823191 ".078"474" :156".8087".
23 February 20 15 Natural Australia Bank
TO LJ Booker NITROGEN BRANCH 23 February 20 15
PAY L J Booker OR BEARER
FOR Rent for March
THE SUM OF Two hundred and twenty dollars only $ 220.00
$ 220.00 D HAREN
D Haren
823192 :156".8087".
".823192 ".078"474"
, Accounting: An introduction to principles and practice, 7e. Solutions Manual 2
23 February 20 15 Natural Australia Bank
TO Wages NITROGEN BRANCH
23 February 20 15
PAY Wages OR BEARER
FOR Wages, week
ended 22 February THE SUM OF Nine hundred and ninety dollars only $ 990.00
$ 990.00 D HAREN
D Haren
823193 :156".8087".
".823193 ".108"474"
Question 1.8
10 August 20 15 Natural Australia Bank
TO Wages NITROGEN BRANCH 10 August 20 15
PAY Wages OR BEARER
FOR Wages for the
period THE SUM OF Six hundred and forty dollars $ 640.00
$ 640.00 A ROSSANA
A Rossana
533234 :156".8087".
".533234 ".078"474"
15 August 20 15 Natural Australia Bank
Telstra NITROGEN BRANCH
TO 15 August 20 15
PAY Telstra OR BEARER
FOR Telephone account
THE SUM OF Three hundred and nineteen dollars only $ 319.00
$ 319.00 A ROSSANA
A Rossana
533235 :156".8087".
".533235 ".078"474"
21 August 20 15 Natural Australia Bank
TO Roads & Traffic NITROGEN BRANCH 21 August 20 15
Authority
PAY Roads & Traffic Authority OR BEARER
FORVehicle
registration THE SUM OF Five hundred and sixty one dollars only $ 561.00
$ 561.00 A ROSSANA
A Rossana
533236 :156".8087".
".533236 ".078"474"
