SOLUTIONS MANUAL
Frank Wood’s
Business Accounting
1&2
TENTH EDITION
Frank Wood BSc(Econ), FCA
and
Alan Sangster BA, MSc, CertTESOL, CA
ISBN 0 273 69315 8 (printed)
ISBN 0 273 69320 4 (web)
© Pearson Education Limited 2005
Lecturers adopting the main text are permitted to download
and photocopy this manual as required.
,Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies around the world
Visit us on the World Wide Web at
www.pearsoneduc.com
Tenth edition published in 2005
© Pearson Education Limited 2005
The rights of Frank Wood and Alan Sangster to be identified
as authors of this Work have been asserted by them in accordance
with the Copyright, Designs and Patents Act 1988.
All rights reserved. Permission is hereby given for the material in this
publication to be reproduced for OHP transparencies and student handouts,
without express permission of the Publishers, for educational purposes only.
In all other cases, no part of this publication may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without either the prior
written permission of the Publishers or a licence permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd,
90 Tottenham Court Road, London W1P 0LP.
ISBN 0 273 69315 8 (printed)
ISBN 0 273 69320 4 (web)
10 9 8 7 6 5 4 3 2 1
08 07 06 05
Printed in Great Britain
,Contents
Preface iv
Part 1 Business Accounting 1 1
Students and examination success 3
Answers 6
Part 2 Business Accounting 2 93
Answers 95
, Preface
This solutions manual contains answers to all the questions not already answered in Business Accounting 1
and Business Accounting 2. It can be seen that there are a considerable number of questions in both text-
books. About one-half of these have the answers at the back of the relevant textbook, while the remainder
of the answers are contained in this manual.
The result of this is to give a high degree of flexibility in the use of the textbooks. To illustrate the contents
of each chapter, the questions can be used which have answers in the textbook. Any students who are
absent can be told what they have missed and can look up the answers themselves. Students who arrive late
on the course can also be told what work to do and they can check their own progress against the answers
as given. However, quite obviously work must be set, either in class or for homework, for which answers
are not available to students. This manual can therefore be used to check such work.
Whilst every endeavour has been made to show workings quite fully, it must be appreciated that there are
often different ways of getting to the same answer. This manual would be unduly lengthy and complicated if
every version of arriving at the answer were to be shown. The methods chosen are therefore those judged
to be the best from a teaching point of view.
Frank Wood and Alan Sangster
By writing on letterheaded paper of the institution where you teach, giving details of the course for which
you use Business Accounting 1 or Business Accounting 2 with your classes, you can obtain complimentary
copies of this manual. This manual is not available for students, nor is it in any way available for sale to
the general public. It is also available on the lecturer’s password-protected section of the Frank Wood
website at www.pearsoned.co.uk/wood
Frank Wood’s
Business Accounting
1&2
TENTH EDITION
Frank Wood BSc(Econ), FCA
and
Alan Sangster BA, MSc, CertTESOL, CA
ISBN 0 273 69315 8 (printed)
ISBN 0 273 69320 4 (web)
© Pearson Education Limited 2005
Lecturers adopting the main text are permitted to download
and photocopy this manual as required.
,Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies around the world
Visit us on the World Wide Web at
www.pearsoneduc.com
Tenth edition published in 2005
© Pearson Education Limited 2005
The rights of Frank Wood and Alan Sangster to be identified
as authors of this Work have been asserted by them in accordance
with the Copyright, Designs and Patents Act 1988.
All rights reserved. Permission is hereby given for the material in this
publication to be reproduced for OHP transparencies and student handouts,
without express permission of the Publishers, for educational purposes only.
In all other cases, no part of this publication may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without either the prior
written permission of the Publishers or a licence permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd,
90 Tottenham Court Road, London W1P 0LP.
ISBN 0 273 69315 8 (printed)
ISBN 0 273 69320 4 (web)
10 9 8 7 6 5 4 3 2 1
08 07 06 05
Printed in Great Britain
,Contents
Preface iv
Part 1 Business Accounting 1 1
Students and examination success 3
Answers 6
Part 2 Business Accounting 2 93
Answers 95
, Preface
This solutions manual contains answers to all the questions not already answered in Business Accounting 1
and Business Accounting 2. It can be seen that there are a considerable number of questions in both text-
books. About one-half of these have the answers at the back of the relevant textbook, while the remainder
of the answers are contained in this manual.
The result of this is to give a high degree of flexibility in the use of the textbooks. To illustrate the contents
of each chapter, the questions can be used which have answers in the textbook. Any students who are
absent can be told what they have missed and can look up the answers themselves. Students who arrive late
on the course can also be told what work to do and they can check their own progress against the answers
as given. However, quite obviously work must be set, either in class or for homework, for which answers
are not available to students. This manual can therefore be used to check such work.
Whilst every endeavour has been made to show workings quite fully, it must be appreciated that there are
often different ways of getting to the same answer. This manual would be unduly lengthy and complicated if
every version of arriving at the answer were to be shown. The methods chosen are therefore those judged
to be the best from a teaching point of view.
Frank Wood and Alan Sangster
By writing on letterheaded paper of the institution where you teach, giving details of the course for which
you use Business Accounting 1 or Business Accounting 2 with your classes, you can obtain complimentary
copies of this manual. This manual is not available for students, nor is it in any way available for sale to
the general public. It is also available on the lecturer’s password-protected section of the Frank Wood
website at www.pearsoned.co.uk/wood
