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Level 1 Book-keeping Solutions Booklet For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc. com www. lcci. org. uk London Chamber of Commerce and Industry (LCCI) International Qualifications are provided by EDI, a leading international awarding body. Passport to Success Level 1 Book-keeping Solutions Booklet The initials LCCI and the words LONDON CHAMBER OF COMMERCE AND INDUSTRY are registered trademarks belonging to the London Chamber of Commerce and Industry and are used under licence.

Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the Publishers will be pleased to make the necessary arrangements at the first opportunity. © EDI 2008 First published in 2008. All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or held within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited.

Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Cover photo: www. fotolia. com TABLE OF CONTENTS 1. 2. 3. 4. The Accounting Equation and the Balance Sheet Double entry system for assets, liabilities and capital Recording double entry for stock The double entry system for Expenses and Revenues and the Effect of Profit (or loss) and drawings upon capital 1 4 7 11 5. 6. 7. 8. 9.

Balancing accounts and the Trial Balance Trading and Profit & Loss Accounts: An introduction The Balance Sheet Final Accounts with further considerations The Division of the Ledger and Books of Original Entry 16 25 28 31 38 39 41 44 48 53 56 59 62 68 71 75 77 81 82 10. Bank Facilities 11. Cash Books 12. The Sales and Purchases Day Books 13. The Returns Day Books 14. The Journal 15. The Petty Cash Imprest System 16. Adjusting for accruals and prepayments 17. Depreciation of Fixed Assets 18. Bad Debts 19. Bank Reconciliation Statements 20.

Capital and Revenue Expenditure 21. Errors in the accounts and their corrections 22. Control Accounts 23. Final Accounts and year end adjustments Chapter 1 The Accounting Equation and the Balance Sheet Answers to ‘Think about it’ Questions Page 5 – Why are liabilities shown on the right hand side of the balance sheet and not on the left? Because based on the accounting equation it has to be on the same side as capital. Answers to Activities Activity 1. 1 (a) (b) (c) (d) L A A A (e) L (f) A (g) C Activity 1. 2 ASSETS ? 5 000 4 200 4 100 3 500 6 900 CAPITAL ? 000 2 500 2 800 2 400 4 100 LIABILITIES ? 2 000 1 700 1 300 1 100 2 800 (a) (b) (c) (d) (e) Solutions to Target Practice Questions Question 1 (a) (b) (c) (d) (e) (f) ‘…assets less liabilities equals capital’. assets liabilities debtor creditor Balance Sheet 1 Question 2 ASSETS ? 3 100 800 2 200 LIABILITIES ? Shop fittings Cash register Stock of goods Creditors Loan – T Armani Bank 1 000 1 800 870 6 970 2 800 Capital = Assets – Liabilities Capital = 6970 – 2800 = ? 4170 Question 3 M Williams Balance Sheet at 30 June 20X6 ?

Cash at Bank Stock of goods Fixtures and Fitting Debtors Motor vehicles 2 614 5 860 1 900 3 750 4 200 18 324 Creditors Loan – D Wong Capital (missing item) ? 4 150 3 600 10 574 _____ 18 324 Question 4 Transactions (a) The owner borrows ? 5000 from L Pole and the money is put into the business’ bank account. A debtor pays the business ? 250 by cheque. The owner buys a motor vehicle on credit ? 6200. The owner withdraws ? 160 from the business’s bank account for his personal use. The business sells goods on credit for ? 840. The owner puts a further ? 000 in cash into the business. The money is put into the business’s bank account. The business pays a creditor ? 290 by cheque. Assets + Bank Effect upon Liabilities + Loan Capital (b) (c) (d) + Bank – Debtors + Motor Vehicle – Bank + Creditors – Capital (e) (f) – Stock + Debtors + Bank + Capital (g) – Bank – Creditors 2 Question 5 W Mandrake Balance Sheet at 30 June 20X5 ? 5 360 4 500 1 845 2 800 5 100 19 605 ? 2 900 3 000 13 705 _____ 19 605 Stock of goods Debtors Cash at Bank Fixtures and fittings Motor vehicles Creditors Loan – L Walter Capital (balancing figure)

W Mandrake Balance Sheet at 31 July 20X5 ? Stock of goods Creditors (5360 + 700 – 600) 5 460 (2900 + 700 – 400) Debtors Loan – L Walter (4500 – 1100 + 600) 4 000 Capital Cash at Bank (balancing figure) (1845 – 400 + 1100) 2 545 Fixtures and Fittings 2 800 Motor Vehicles 5 100 19 905 ? 3 200 3 000 13 705 ……… 19 905 Question 6 D Duncan Balance Sheet at 21 January 20X7 ? 20 000 2 100 500 100 700 123 300 ______ 123 300 ? 120 000 3 300 Motor Vehicles Stock of goods (1500 + 600) Debtor – A Gianna Cash at Bank (101 000 – 300) Capital Creditor – Stax Suppliers (3000 + 600 – 300)

Question 7 The difference between a cash transaction and a credit transaction is based on when payment is made. With a cash transaction, payment is made immediately for goods and/or services purchased while in a credit transaction payment is made 3 Chapter 2 Double Entry System for Assets, Liabilities and Capital Answers to ‘Think about it’ Questions Page 16 – Why is it necessary to keep separate accounts for each debtor and creditor? So it can clearly be seen how much is owed to individual creditors and how much is owed by individual debtors. Answers to Activities

Activity 2. 1 (a) Bought office furniture for cash (b) Sold some office furniture on credit to C Bing (c) Bought motor vehicles on credit from Wong Ltd (d) A debtor, P Butler, pays the business by cheque (e) The owner puts a further amount into the business by cheque (f) Returned one of the motor vehicles to Wong Ltd (g) Paid a creditor, T Bird, by cash (h) Paid by cheque for the motor vehicle bought from Wong Ltd Debit Office Furniture C Bing Motor Vehicles Bank Bank Wong Ltd T Bird Wong Ltd Credit Cash Office Furniture Wong Ltd P Butler Capital Motor Vehicles Cash Bank

Solutions to Target Practice Questions Question 1 The left hand side of a ‘T’ account is the debit side and the right hand side is the credit side. To ‘debit’ an account the transaction is entered on the left hand side and to ‘credit’ an account, the transaction is entered on the right hand side. Question 2 There must be a debit entry and a corresponding credit entry of the same value (and vice versa) for every transaction that occurs. Question 3

To know when to debit or credit an account, you will first need to determine the type of the account and decide how the transaction will affect the account ;( whether increase or decrease) and then apply the double entry rules as below: To increase an asset, DEBIT the account To decrease an asset, CREDIT the account To increase a liability or capital, CREDIT the account To decrease a liability or capital, DEBIT the account 4 Question 4 Bank ? 20X2 6 000 July 15 July 29 20X2 July 01 Capital Office Machinery Elstead Garage ? 420 2 900 Capital 20X2 July 01 Bank ? 6 000 20X2 July 06

Motor Vehicle ? Elstead Garage 2 800 20X2 July 29 Bank Elstead Garage ? 20X2 2 800 July 06 Motor vehicle ? 2 800 20X2 July 15 Bank Office Machinery ? 420 20X2 July 23 Office Equipment ? Longmore & Sons 70 Longmore & Sons 20X2 July 23 Office equipment ? 370 Question 5 Cash ? 20X9 2 000 April 08 300 April 30 20X9 April 01 April 29 Capital Bank Bank Furniture World ? 1 000 800 5 Bank 20X9 April 01 April 03 April 08 Capital Loan – S Lee Cash ? 8 000 3 000 1 000 20X9 April 14 April 23 April 29 Delivery Van Loan – S Lee Cash ? 1 500 1 200 300 Capital 20X9 April 01 April 01

Cash Bank ? 2 000 8 000 20X9 April 23 Loan – S. Lee ? 20X9 1 200 April 03 Bank ? 3 000 20X9 April 14 Bank Delivery Van ? 1 500 20X9 April 20 Furniture World Office Furniture ? 20X9 1 100 April 26 Furniture World ? 200 20X9 April 26 April 30 Office Furniture Cash Furniture World ? 20X9 200 April 20 800 Office Furniture ? 1 100 6 Chapter 3 Recording Double Entry for Stock Answers to Activities Activity 3. 1 Debit Office Furniture Cash Purchases A Litton D Penarth Motor Van Returns Inwards Purchases Credit Cash Sales A Litton Returns Outwards Sales Grange Garage D Penarth Bank a) Bought office furniture for use in the business by cash (b) Sold goods for cash (c) (d) (e) (f) Bought goods on credit from A Litton Returned to A Litton some of the goods bought Sold goods on credit to D Penarth Purchased motor van on credit from Grange Garage (g) D Penarth returned some goods to us (h) Bought goods paying immediately by cheque Solutions to Target Practice Questions Question 1 ‘Purchases’ means goods bought by the business with the intention of reselling them for profit as a part of its trading activities. ‘Sales’ means oods sold by the business that were originally bought for resale purposes. In other words, the sale of those goods in which the business trades or deals. Question 2 (a) This is not good practice. Parts returned to suppliers should be credited to a Returns Outwards Account and parts returned from customers should be debited to Returns Inwards Account. This is necessary to provide information on the totals of the returns and to assess whether these are increasing or decreasing over time. (b) Goods sold for cash is recorded by debiting the cash account and crediting the sales account.

Goods sold on credit is first recorded by debiting the debtor account and crediting the sales account; when the debtor pays for the goods his account is credited and the bank/cash is debited. Question 3 (a) (b) (c) (d) (e) (f) Sold goods on credit to F. Winter N. Armour returns goods to you You settle a creditor’s account by cheque F. Winter pays his account You pay Grange Garages by cheque the amount due on the delivery vehicle previously purchased You return goods to B. Smart Debit F Winter Returns Inwards Creditor Bank Grange Garages B Smart Credit Sales N Armour Bank F Winter Bank Returns Outwards Question 4 20X7 March 01 Capital March 30 B Wright Bank ? 20X7 10 000 March 03 Office Furniture 70 March 23 Scales Motors March 26 T Hunt ? 460 3 600 320 Capital 20X7 March 01 Bank ? 10 000 20X7 March 03 Bank Office Furniture ? 460 20X7 March 05 Purchases Purchases ? 375 T Hunt 20X7 20X7 ? March 08 Returns Outwards 55 March 05 March 26 Bank 320 Purchases ? 375 Returns Outwards 20X7 March 08 T Hunt ? 55 20X7 March 12 Sales B Wright 20X7 ? 156 March 19 March 30 Returns Inwards Bank ? 26 70 Sales 20X7 March 12 B Wright ? 56 8 20X7 March 15 Scales Motors

Motor Vehicle ? 3 600 20X7 March 23 Bank Scales Motors ? 20X7 3 600 March 15 Motor Vehicle ? 3 600 20X7 March 19 B Wright Returns Inwards ? 26 Question 5 20X7 October 01 Capital October 17 Cash Cash 20X7 ? 8 600 October 02 80 October 07 ? 8 000 179 Bank Purchases Capital 20X7 October 01 Cash ? 8 600 20X7 October 02 Cash October 23 Loan – R Nandha October 31 J Durrant Bank ? 20X7 8 000 October 21 October 29 1 200 303 Motor Vehicle M Price ? 1 990 100 20X7 October 03 October 07 M Price Cash Purchases ? 250 179 20X7 October 13 Returns Outwards October 29 Bank M Price ? 0X7 October 03 32 100 Purchases ? 250 9 Fixtures & Fittings 20X7 October 05 Display Ltd ? 2 750 20X7 October 07 Display Ltd ? 730 Display Ltd 20X7 ? 20X7 ? October 09 Fixtures & Fittings 30 October 05 Fixtures & Fittings 2 750 20X7 October 11 Sales J Durrant 20X7 ? 345 October 26 Returns Inwards October 31 J Durrant ? 42 303 Sales 20X7 October 11 J Durrant October 17 Cash ? 345 80 Returns Outwards 20X7 October 13 M Price ? 32 20X7 October 21 Bank Motor Vehicle ? 1 990 Loan – R Nandha 20X7 October 23 Bank ? 1 200 20X7 October 26 J Durrant Returns Inwards ? 42 10

Chapter 4 The Double Entry System for Expenses and Revenues and the Effect of Profit (or Loss) and Drawings upon Capital Answers to ‘Think about it’ Questions Page 36 – What kinds of expense and revenue accounts would you expect to see in the books of a Bank? Revenue Accounts Loan interest receivable Commission receivable Service charges (eg. bank charges) Expense Accounts Interest payable Salaries and wages Insurance Stationery Utilities Answers to Activities Activity 4. 1 Transactions Paid general expenses in cash ? 150 Received commission by cheque ? 230 Paid for office stationery by cash ? 5 Paid telephone by cheque ? 230 Received interest of ? 350 by cheque Accounts General Expense Cash Bank Commission Receivable Office Stationery Cash Telephone Bank Bank Interest Receivable Type of account Expense Asset Asset Revenue Expense Asset Expense Asset Asset Revenue Transaction effect Increase Decrease Increase Increase Increase Decrease Increase Decrease Increase Increase Action in the account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Solutions to Target Practice Questions Question 1 (a) Revenue (b) The entries are on the credit side of the account. 11

Question 2 Expense accounts should be debited and revenue accounts should be credited. Question 3 20X3 April 01 April 24 April 30 Bank 20X3 ? 5 000 April 03 85 April 05 1 000 April 14 April 21 April 27 ? 370 260 130 20 385 Capital Sales Capital Office Equipment Rent Cash Stationery A Smart Capital 20X3 April 01 April 30 Bank Bank ? 5 000 1 000 20X3 April 03 Bank Office Equipment ? 370 20X3 April 05 Rent Rent ? 260 20X3 April 08 A Smart Purchases ? 420 20X3 April 11 April 27 Returns Outwards Bank A Smart ? 20X3 35 April 08 385 Purchases ? 420 Returns Outwards 20X3 April 11 A Smart ? 35 12 0X3 April 14 Bank ? 130 Cash 20X3 April 15 Wages ? 115 20X3 April 15 Cash Wages ? 115 20X3 April 18 Sales R Squires ? 175 Sales 20X3 April 18 April 24 R Squires Bank ? 175 85 20X3 April 21 Bank Stationery ? 20 Question 4 Bank 20X4 ? 7 000 May 02 100 May 08 May 19 May 24 May 26 May 31 Capital 20X4 May 01 20X4 May 01 May 28 Capital D Langford Rent Fixtures & Fittings Drawings Cash R Lester Office Equipment ? 280 170 160 240 470 215 Bank ? 7 000 20X4 May 02 Bank Rent ? 280 13 20X4 May 05 R Lester Purchases ? 520 20X4 May 12 May 26 Returns Outwards Bank R Lester 20X4 ? 45 May 05 475 Purchases 520 20X4 May 08 Bank Fixtures & Fittings ? 170 Returns Outwards 20X4 May 12 R Lester ? 45 Sales 20X4 May 15 D Langford ? 32 20X4 May 15 Sales D Langford 20X4 ? May 22 32 May 28 Returns Inwards Bank ? 24 100 20X4 May 19 Bank Drawings ? 160 20X4 May 22 D Langford Returns Inwards ? 30 20X4 May 24 Bank Cash ? 20X4 240 May 30 Wages ? 80 14 20X4 May 30 Cash Wages ? 80 20X4 May 31 Bank Office Equipment ? 215 Question 5 Drawings are defined as money, goods, or services withdrawn from the business by the owner(s) for their personal use. Drawings reduce the capital of the business. Question 6 a) Answer = ? 2500 Workings: 1 February 20X7 Assets Equipment Stock Bank Liabilities Creditors Loan Capital ? 8 000 6 000 2 000 ? 2 000 1 000 ?16 000 ?3 000 ?16 000 – ? 3000 = ? 13 000 28 February 20X7 Assets Equipment Stock Bank Liabilities Creditors Loan Capital ? 8 000 2 000 8 500 ? 2 000 1 000 ?18 500 ?3 000 ?18 500 – ? 3000 = ? 15 500 Therefore, Opening Capital + Profit = Closing Capital ? 13 000 + ? = ? 15 500 ? 15 500 – ? 13 000 = ? 2500 (b) Profits increase capital whereas losses reduce it. 15 Chapter 5 Balancing Accounts and the Trial Balance Answers to ‘Think about it’ Questions

Page 49 – How the double entry principle relates to the balancing of accounts. For every ‘balance c/d’ there is a corresponding ‘balance b/d’ of the same amount on the opposite side of the account. Answers to Activities Activity 5. 1 (a) An account will have a debit balance if the total of the debit entries is greater than the total of the credit entries. This means that the balance brought down from the last month (balance b/d) is on the debit side of the account. (b) An account will have a credit balance if the total of the credit entries is greater than the total of the debit entries.

This means that the balance brought down from the last month (balance b/d) is on the credit side of the account. (c) The ‘balance c/d’ is the amount transferred (carried down or carried forward) from one accounting period to the next; this is the balance at the last date of the accounting period (e. g. a month). The ‘balance b/d is the amount transferred (brought down or brought forward) from a previous accounting period to the current one; this is the balance at the first date of the accounting period. (d) The double lines are necessary to show that the account has been balanced and that the totals are final figures. e) Accounts are closed off when there is no balance on the account at the end of the accounting period. Activity 5. 2 20X9 July 01 July 04 July 09 July 13 July 15 July 19 July 22 July 24 July 29 Capital Equipment Wages Sales Computers Wages Sales Motor vehicles Wages Debit ? 55 000 Credit ? 5 000 900 Balance ? 55 000 50 000 49 100 58 650 50 650 49 750 53 630 47 630 46 530 9 550 8 000 900 3 880 6 000 1 100 16 Solutions to Target Practice Questions Question 1 E. Appleby 20X6 ? 650 October 07 Returns Inwards 276 October 18 Bank 190 October 31 Balance c/d 1 116 506 0X6 October 03 Sales October 12 Sales October 24 Sales November 01 Balance b/d ? 120 490 506 1 116 Answer – There is a debit balance of ? 506. Question 2 N Small ? 145 215 185 ___ 545 365 20X3 March 04 March 18 March 23 Sales Sales Sales 20X3 March 13 March 26 March 30 March 31 Returns Inwards Returns Inwards Bank Balance c/d ? 20 35 125 365 545 April 01 Balance b/d 20X3 March 21 March 31 Bank Bank A Smith 20X3 ? 70 March 10 290 360 Purchases ? 360 ___ 360 20X3 March 07 March 28 March 31 T Dove 20X3 ? Returns Outwards 35 March 02 Bank 235 March 15 Balance c/d 310 580 April 01 Purchases Purchases

Balance b/d ? 270 310 ___ 580 310 N Small is a debtor and T Dove is a creditor. A Smith is neither. 17 Question 3 T Dove 20X3 March 02 March 07 March 15 March 28 Purchases Returns Outwards Purchases Bank Debit ? 35 310 235 Credit ? 270 Balance ? 270 Cr 235 Cr 545 Cr 310 Cr N Small 20X3 March 04 March 13 March 18 March 23 March 26 March 30 Sales Returns Inwards Sales Sales Returns Inwards Bank Debit ? 145 215 185 35 125 Credit ? 20 Balance ? 145 Dr 125 Dr 340 Dr 525 Dr 490 Dr 365 Dr A Smith 20X3 March 10 March 21 March 31 Purchases Bank Bank Debit ? 70 290 Credit ? 360 Balance ? 360 Cr 290 Cr NIL

Question 4 (a) 20X5 January 01 January 23 January 26 January 31 Capital Cash S Lee Capital Bank ? 20X5 25 000 January 01 6 000 January 25 5 500 January 29 5 000 January 30 January 30 January 31 _____ January 31 41 500 23 000 ? Rent 2 000 Cash 500 Midland Motors 4 000 D. Terry 8 000 E. Appleby 2 000 Electricity 2 000 Balance c/d 23 000 41 500 February 01 Balance b/d 20X5 January 31 Balance b/d Capital ? 20X5 30 000 January 1 Bank .. ……. January 31 Bank 30 000 February 01 Balance c/d ? 25 000 5 000 30 000 30 000 18 20X5 January 1 Bank February 01 Balance b/d Rent 20X5 ? 2 000 January 31 2 000 2 000

Balance c/d ? 2 000 2 000 20X5 January 03 January 05 January 15 D Terry E Appleby D Terry February 01 Balance b/d Purchases ? 20X5 5 000 January 31 3 000 10 000 18 000 18 000 Balance c/d ? 18 000 ………. 18 000 20X5 January 22 January 30 January 31 Returns Outwards Bank Balance c/d D Terry 20X5 ? January 03 Purchases 2 000 January 15 Purchases 8 000 5 000 15 000 February 01 Balance b/d ? 5 000 10 000 _____ 15 000 5 000 Motor Car 20X5 20X5 ? January 04 Midland Motors 4 000 January 31 February 01 Balance b/d 4 000 Balance c/d ? 4 000 20X5 January 29 Bank Midland Motors 20X5 ? 4 000 January 4 4 000 Motor Car 4 000 4 000 20X5 January 30 January 31 Bank Balance c/d E Appleby 20X5 ? Purchases 2 000 January 5 1 000 3 000 February 01 Balance b/d ? 3 000 …….. 3 000 1 000 19 20X5 January 10 January 25 Sales Bank February 01 Balance b/d Cash 20X5 ? 6 000 January 23 500 January 28 …….. January 31 6 500 250 Bank Office expenses Balance c/d ? 6 000 250 250 6 500 20X5 January 31 Balance c/d Sales 20X5 ? 14 000 January 10 Cash ……… January 20 S Lee 14 000 February 01 Balance b/d ? 6 000 8 000 14 000 14 000 20X5 January 20 Sales February 01 Balance b/d S Lee 20X5 ? 8 000 January 24 January 25 …….. January 31 8 000 1 500

Returns Inwards Bank Balance c/d ? 1 000 5 500 1 500 8 000 20X5 January 31 Balance c/d Returns Outwards 20X5 ? 2 000 January 22 D Terry 2 000 February 01 Balance b/d ? 2 000 2 000 2 000 20X5 January 24 S Lee February 01 Balance b/d Returns Inwards 20X5 ? 1 000 January 31 1 000 1 000 Balance c/d ? 1 000 1 000 20 Office Expenses 20X5 ? Cash 250 January 31 250 February 01 Balance b/d 250 20X5 January 28 Balance c/d ? 250 250 20X5 January 31 Bank February 01 Balance b/d Electricity 20X5 ? 2 000 January 31 2 000 2 000 Balance c/d ? 2 000 2 000 (b) Steve Trial Balance at 31January 20X5 DR CR ? Bank Capital Rent Purchases D Terry Motor Car E Appleby Cash Sales S Lee Returns Outwards Returns Inwards Office Expenses Electricity 23 000 30 000 2 000 18 000 5 000 4 000 1 000 250 14 000 1 500 2 000 1 000 250 2 000 52 000 _____ 52 000 Question 5 Bank 20X8 ? 5 000 May 16 700 May 27 May 30 …….. May 31 5 700 1 300 20X8 May 01 May 18 Balance b/d Bank Dodd Delivery Van Cash Balance c/d ? 2 900 1 200 300 1 300 5 700 June 01 Balance b/d 21 20X8 May 31 Balance c/d Capital 20X8 ? 20 000 May 01 20 000 June 01 Balance b/d Balance b/d ? 20 000 20 000 20 000 20X8 May 01 May 04 May 30 June 01 Balance b/d Sales Bank Balance b/d Cash 20X8 ? 000 May 07 2 000 May 23 300 May 31 3 300 900 Purchases Office Expenses Balance c/d ? 1 500 900 900 3 300 20X8 May 16 May 31 Bank Balance c/d Dodd 20X8 ? 2 900 May 01 2 100 May 02 5 000 June 01 Balance b/d Purchases Balance b/d ? 2 000 3 000 5 000 2 100 20X8 May 01 May 10 June 01 Balance b/d Sales Balance c/d Fish ? 20X8 6 000 May 18 5 000 May 31 11 000 10 300 ? Bank Balance b/d 700 10 300 11 000 20X8 May 01 June 01 Balance b/d Balance b/d Furniture ? 20X8 10 000 May 31 10 000 10 000 Balance c/d ? 10 000 10 000 20X8 May 02 May 07 June 01 Dodd Cash Balance b/d Purchases 20X8 ? 3 000 May 31 1 500 4 500 4 500 Balance c/d 4 500 …….. 4 500 22 20X8 May 31 Balance c/d Sales 20X8 ? 7 000 May 04 ____ May 10 7 000 June 01 Cash Fish Balance b/d ? 2 000 5 000 7 000 7 000 20X8 May 23 June 01 Cash Balance b/d Office Expenses 20X8 ? 900 May 31 900 900 Balance c/d ? 900 900 20X8 May 27 June 01 Bank Balance b/d Delivery Van 20X8 ? 1 200 May 31 1 200 1 200 Balance c/ ? 1 200 1 200 (b) Tom Trial Balance at 31 May 20X8 DR CR ? ? Bank Capital Cash Dodd Fish Furniture Purchases Sales Office Expenses Delivery Van 1 300 20 000 900 2 100 10 300 10 000 4 500 7 000 900 1 200 29 100 ………. 29 100 23 Question 6 (a) T. Lennon Trial Balance at 31 December 20X9 DR CR ? Motor Vehicle Purchases Sales Stock of Goods Cash at Bank Fixtures and Fittings Wages Debtors Creditors Rent Drawings General Expenses Loan from D. Waller Capital 4 500 2 960 4 230 1 800 6 740 7 900 2 310 1 960 2 600 1 250 180 930 2 000 21 700 30 530 30 530 (b) A trial balance checks the arithmetical accuracy of the double entry. (c) Errors not revealed by the trial balance: 1. A transaction that has been completely omitted 2. A transaction that was entered correctly but using the wrong amount Errors revealed by the trial balance 1. Entering only one side of a transaction 2. Addition errors Question 7 a) (b) (c) (d) (e) (f) Credit Debit Debit Credit Credit Debit 24 Chapter 6 Trading and Profit & Loss Accounts: An Introduction Answers to Activities Activity 6. 1 Year Sales ? Cost of goods sold ? 23 230 23 900 21 500 Gross Profit/Loss ? 5 890 2 889 7 000 Operating Expenses ? 3 311 3 600 2 900 Other Revenue ? 600 200 – Net Profit / Loss ? 3 179 (511) 4 100 2005 2006 2007 29 120 26 789 28 500 Solutions to Target Practice Questions Question 1 Andrew Gordon Trading and Profit & Loss Account for the year ended 31 December 20X2 ? 26 200 3 100 23 100 11 570 34 670 6 100 1 200 160 380 3 730 11 570 ? 34 670 _____ 34 670 Gross profit b/d 11 570

Purchases Less Stock at 31 December 20X2 Cost of goods sold Gross profit c/d Wages Rent Insurance Lighting and heating Net profit Sales ______ 11 570 25 Question 2 A. Darnell Trading and Profit & Loss Account for the year ended 30 September 20X7 ? 23 380 3 650 19 730 11 140 30 870 900 320 860 4 200 165 4 695 11 140 ? 30 870 _____ 30 870 Gross profit b/d 11 140 Purchases Less Stock at 30 September 20X7 Cost of goods sold Gross profit c/d Rent Insurance Motor vehicle expenses Wages General expenses Net profit Sales _____ 11 140 Question 3 B. Betty Trading and Profit & Loss Account for the year ended 30 June 20X5 ? 1 160 2 800 18 360 10 280 28 640 2 240 5 100 190 315 2 435 10 280 ? 28 640 _____ 28 640 Gross profit b/d 10 280 Purchases Less Stock at 30 June 20X5 Cost of goods sold Gross profit c/d Rent Wages Insurance Office expenses Net profit Sales ______ 10 280 26 Question 4 Ada Cheung Trading and Profit & Loss Account for the year ended 31 March 20X3 Purchases Less Stock at 31 March 20X3 Cost of goods sold Gross profit c/d Wages Rent Advertising Lighting and heating Sundry expenses Net profit ? 46 820 9 140 37 680 16 020 53 700 7 360 2 370 840 765 1210 3 475 16 020 Sales ? 53 700 _____ 53 700 Gross profit b/d 16 020 _____ 16 020 Question 5 (a) 1. Comparing performance with other businesses or with previous periods of time to see if the business is growing. Planning ahead – profits will allow the firm to expand so information about how much profit has been made and how it was made will be important in deciding what to do in the future. To help the business to control and monitor its expenses. 2. 3. (b) This means that his cost of goods sold was more than the sales revenue; he sold the goods for less than he paid for them. 27 Chapter 7 The Balance Sheet Answers to ‘Think about it’ Questions

Page 72 – Why the balance sheet is prepared at a specified date while the trading and profit and loss is prepared for a period of time. Because it shows the financial position of a business at a particular date and not for a particular period of time. It shows the value of assets and liabilities as they are at a specific date. Solutions to Target Practice Questions Question 1 1. Fixed assets are presented in order of decreasing permanence while current assets are presented in increasing order of liquidity. Question 2 J Robinson Balance Sheet at 31 March 20X7 ? Fixed Assets Buildings Fixtures and fittings Motor vehicle ?

Capital (missing figure) ? 47 020 35 000 2 860 6 400 44 260 Current Assets Stock Debtors Bank Cash 4 360 7 200 2 950 80 14 590 58 850 Current Liabilities Creditors Long-term Liabilities Loan 6 830 5 000 ______ 58 850 28 Question 3 Andrew Gordon Balance Sheet as at 31 December 20X2 ? Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 68 660 3 730 2 600 1 130 69 790 Current Liabilities Creditors 54 000 1 200 5 600 60 800 Current Assets Stock Debtors Bank 3 180 3 460 4 130 10 690 71 490 1 700 _____ 71 490 Question 4 A Darnell Balance Sheet as at 30 September 20X7 ?

Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 34 555 4 695 3 200 1 495 36 050 Current Liabilities Creditors 24 000 850 4 200 29 050 Current Assets Stock Bank Cash 3 650 2 130 70 9 900 38 950 2 900 38 950 29 Question 5 B Betty Balance Sheet as at 31 June 20X5 ? Fixed Assets Office furniture Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 7 500 2 435 1 230 1 205 8 705 Current Liabilities Creditors 1 870 650 2 800 ____ 3 450 2 800 2 360 1 890 75 _7,125 10 575 Current Assets Stock Debtors Bank Cash _____ 10 575 Question 6 Ada Cheung Balance Sheet as at 31 March 20X3 ?

Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 68 335 3 475 3 700 __(225) 68 110 Current Liabilities Creditors 43 000 5 700 5 300 54 000 Current Assets Stock Debtors Bank 9 140 8 200 1 710 19 052 73 050 4 940 _____ 73 050 30 Chapter 8 Final Accounts with Further Considerations Answers to Activities Activity 8. 1 T Antonio Trading Account for the month ending 30 April 20X8 Opening Stock Purchases Add Carriage inwards Less Returns outwards Less Closing Stock Cost of goods sold Gross profit c/d ? 3 855 2 680 102 2 782 139 Sales Less Returns inwards Turnover ? 280 139 5 141 2 643 6 498 2 631 3 867 1 274 5 141 5 141 Solutions to Target Practice Questions Question 1 (a) Carriage Inwards is associated with the cost of getting goods into the business and ready for resale so it is always added to the cost of purchases in the Trading Account. Carriage Outwards is a necessary cost of ‘distribution’ of sales to customers and so it is debited to the Profit & Loss Account with other expenses. (b) It is necessary to include returns inwards and returns outwards in the trading account to adjust the purchases and sales figures to find the amounts actually bought and sold. c) It shows the amount of resources a business has that can be readily turned into cash. 31 Question 2 R Knight Trading and Profit & Loss Account for the year ended 31 October 20X6 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening stock Purchases Add: Carriage inwards Net purchases Less: Closing stock Gross Profit Less: Expenses Carriage outwards Wages Sundry expenses Net Profit ? ? 120 500 740 119 760 15 200 75 400 2 150 77 550 92 750 13 600 79 150 40 610 3 200 28 500 2 230 33 930 6 680 32 Question 3

T Pearl Trading and Profit & Loss Account for the year ended 31 August 20X7 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening stock Purchases Add: Carriage inwards Less Returns outwards Net purchases Less: Closing stock Gross Profit Add: Rent Receivable Less: Expenses Carriage Outwards Rent Payable Lighting and heating Telephone Net Profit ? ? 34 350 1 230 33 120 4 360 26 500 940 27 440 1 050 26 390 30 750 4 210 26 540 6 580 600 7 180 540 2 100 430 215 3 305 3 875 33 Question 4 P Franks Trading and Profit & Loss Account For the year ended 28 February 20X8 ?

Sales Less: Returns Inwards Turnover Less: Cost of goods sold Opening stock Purchases Less: Returns outwards Net purchases Less: Closing stock Gross Profit Less: Expenses Lighting and heating Salaries and wages Sundry expenses Rent and rates Net Profit ? ? 221 300 5 200 216 100 12 600 155 400 6 650 148 750 161 350 16 100 145 250 70 850 3 900 48 500 4 650 2 300 59 350 11 500 34 P Franks Balance Sheet at 28 February 20X8 ? Fixed assets Premises Equipment Motor vehicle Current assets Stock Debtors Bank Cash Less: Current liabilities Creditors Net current assets Long-term liabilities Loan ? 04 000 28 000 21 000 153 000 16 100 23 750 960 76 40 886 15 716 25 170 178 170 32 000 146 170 Financed by: Capital Balance b/d Add: Net profit Less: Drawings 145 270 11 500 156 770 10 600 146 170 35 Question 5 T Williams Trading and Profit & Loss Account for the year ended 31 May 20X8 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening Stock Purchases Add: Carriage inwards Less: Returns outwards Net purchases Less: Closing stock Gross Profit Less: Expenses Wages and salaries Rent Insurance Sundry expenses Carriage Outwards Net Profit ? 139 200 430 138 770 27 230 103 500 630 104 130 960 103 170 130 400 30 580 99 820 38 950 15 320 5 400 325 475 2 340 23 860 15 090 36 T Williams Balance Sheet at 31 May 20X8 ? Fixed assets Buildings Fixtures and fittings Current assets Stock Debtors Bank Cash Less: Current liabilities Creditors Net current assets Long-term liabilities Loan Financed by: Capital balance b/d Add: Net profit Less: Drawings ? 32 000 4 250 36 250 30 580 21 460 4 450 195 56 685 12 240 44 445 80 695 15 000 65 695 62 005 15 090 77 095 11 400 65 695 37 Chapter 9 The Division of the Ledger and Books of Original Entry Answers to ‘Think about it’ Questions

Page 93 – What have you noticed about the Cash Book? It is a Book of Original Entry as well as a Ledger. Answers to Activities Activity 9. 1 1. 2. 3. 4. 5. 6. General Ledger Sales Ledger General Ledger General Ledger General Ledger or Private Ledger General Ledger Solutions to Target Practice Questions Question 1 (a) They provide documentation (proof) that a transaction has occurred. (b) 1. 2. They save time as they summarise similar transactions for the period, resulting in less information and less frequent postings to the General Ledger.

They allow a business to have different individuals responsible for different journals therefore increasing internal control. Question 2 (a) Debtors Ledger (b) Creditors Ledger (c) Nominal Ledger Question 3 (a) (b) (c) (d) (e) Real Nominal Nominal Real Real Question 4 (a) (b) (c) (d) (e) (f) Cash Book Cash Book Cash Book Cash Book Purchases Day Book Cash Book 38 Chapter 10 Bank Facilities Answers to Activities Activity 10. 1 Payee Cheque number Drawer Counterfoil Crossed cheque Mary White is writing a cheque for ? 200 to John Blue.

As she is the drawer she must make sure that she signs the cheque. Her book-keeper told her to always fill out the counterfoil so she will have a record of the payment. As the cheque number is on the counterfoil as well as the cheque it will help her to trace the payment. She has decided to give John a crossed cheque as she is worried that the cheque might get lost. John is not very happy about this. As he is the payee it means he will not be able to get the money from the bank immediately. Solutions to Target Practice Questions Question 1 Bank 20X7 ? 45 December 15 December 22 20X7 November 30 Interest receivable Interest payable Bank charges ? 320 45 Interest Receivable 20X7 November 30 Bank ? 145 20X7 December 15 Bank Interest Payable ? 320 20X7 December 22 Bank Bank Charges ? 45 Question 2 A bank overdraft occurs when the bank allows a current account holder to withdraw more money from the account than is actually in the account. For example, the account holder only has ? 800 in the account but with the permission of the bank is allowed to withdraw up to a maximum of ? 1500. 39 Question 3

A standing order is used for payments of fixed amounts at regular intervals at the request of the account holder while a direct debit is made at the request of the payee (the person/organisation that is owed) and can be used for either fixed or changing amounts and for payments at irregular intervals. Question 4 (a) Interest receivable is the interest received on the balance of an interest bearing account; the amount the bank pays the account holder for the use of the money in the account. (b) Interest payable is the cost of borrowing; it is the payment to the lender (the bank) for the use of its money. c) Bank charges is a charge by a bank for the services it provides. Question 5 (a) (b) (c) (d) Direct Debit Credit transfer Standing order Dividend Question 6 (a) 1. 2. Current account Deposit account (b) Current accounts do not always earn interest, deposit accounts do. Question 7 (a) (b) (c) (d) ? 2738. 57 – ? 206. 05 = ? 2532. 52 Credit column Credit transfer Loan repayment through a standing order 40 Chapter 11 Cash Books Answers to ‘Think about it’ Questions Page 111 – Is it possible for the cash columns to have a credit balance? Give reasons for your answer. No – because it is impossible to spend more cash than is available.

If the business has cash in hand of only ? 50 then it cannot spend more than this amount. Solutions to Target Practice Questions Question 1 (a) As a book of original entry it is the first place where all the cash and cheque transactions are recorded; it is also one side of the double entry. (b) Where the debit and credit entries for a transaction are in the same ledger or book. Question 2 F. Patel – Cash Book Bank 20X3 Details ? Bank (C) Nov 02 Rent 2 800 Nov 03 Purchases Nov 07 Stationery 230 Nov 10 Wages Nov 12 Cash (C) 200 Nov 14 Carriage in Nov 20 Drawings Nov 26 Bank (C) Nov 28 Purchases Nov 30 Balances c/d ……..

Nov 30 3 230 2 130 20X3 Nov 01 Nov 02 Nov 14 Nov 17 Nov 23 Nov 28 Details Capital Cash (C) Bank (C) Sales Sales Cash (C) Cash ? 3 000 160 220 Cash ? 2 800 46 120 Bank 140 370 160 34 60 200 120 3 380 430 2 130 3 230 Dec 1 Balances b/d …….. 3 380 120 41 Question 3 T. Karekla – Cash Book Cash Bank 20X9 Details ? ? Motor vehicle 6 000 July 3 150 Cash (C) July 4 Rent 2 000 July 8 100 Purchases July 10 390 Carriage in July 18 Cash (C) 540 July 20 Purchases 300 July 24 Wages July 24 Bank (C) July 30 Balances c/d July 31 ___ ____ 640 8 840 95 4 460 0X9 July 1 July 4 July 15 July 20 July 23 July 29 July 30 Details Capital Bank (C) Loan Bank (C) Sales Sales Cash (C) Cash ? 85 Bank ? 3 000 150 460 40 100 20 300 95 670 100 4 460 8 840 Aug 1 Balances b/d Question 4 Maria Metaxa – Cash Book Cash Bank 20X7 DETAILS ? 65 ? 3 196 2 610 1 250 2 730 2 945 1 760 Feb 02 Feb 06 Feb 06 Feb 12 Feb 12 Feb 15 Feb 16 Feb 19 Feb 21 Feb 25 Feb 27 Feb 28 Feb 28 Feb 28 Postage Purchases Wages Cash (C) Wages Electricity Stationery Wages Travelling expenses Telephone Wages P Barratt D Smart Balances c/d 20X7 Feb 01 Feb 04 Feb 08 Feb 10 Feb 12 Feb 19 Feb 23

DETAILS Balances b/d Sales D Pole Sales Bank (C) Sales E Holme Discount Allowed ? 30 Discount Received ? Cash ? 50 Bank ? 1 075 2 167 100 1 964 53 100 40 38 1 840 19 132 1 920 1 240 2 145 1 855 14 491 __ 70 Mar 1 Balances b/d ___ 165 58 _____ 14 491 1 855 20 55 __ 75 58 165 (b) Discount Allowed ? Total for the month 70 20X7 February 28 42 Discount Received 20X7 February 28 Total for the month ? 75 Question 5 (a) 20X2 Oct 01 Oct 02 Oct 10 Oct 12 Oct 18 Oct 20 Oct 21 Oct 21 Oct 26 DETAILS Balances b/d P Mace Sales G Lai Bank (C) Sales Loan interest Cash (C) B Chalke Discount Allowed ? 150 1 120 60 16 1 120 704 Sally Foon – Cash Book Cash Bank 20X2 DETAILS ? 68 ? 160 2 086 560 Oct 01 Oct 12 Oct 14 Oct 16 Oct 18 Oct 21 Oct 22 Oct 22 Oct 24 Oct 28 Oct 30 Oct 30 Oct 31 Balances b/d W Eastern Stationery F Samway Cash (C) Bank (C) Wages G Lai Telephone Office Expenses L. Hall Interest paid Balances c/d Discount Received ? Cash ? 35 4 1 120 35 560 147 40 13 __ 17 247 20 1 618 14 491 86 150 Bank ? 1 692 75 __ 24 Nov 1 Balances b/d ____ 1 398 203 _____ 4 630 1 618 203 1 398 (b) The ? 24 discount allowed will be posted to the debit side of the discount allowed account.

The ? 17 discount received will be posted to the credit side of the discount received account. (c) 20X2 October 31 Discount Allowed ? Total for the month 24 Discount Received 20X2 October 31 Total for the month ? 17 43 Chapter 12 The Sales and Purchases Day Books Answers to ‘Think about it’ Questions Page 125 – Why do you think the invoice numbers are not sequential in S French’s Purchases Day Book? Because S French has not assigned unique numbers to each invoice but is instead using the invoice numbers as received from the different sellers.

Solutions to Target Practice Questions Question 1 (a) Sales Day Book Date 20X8 Oct 01 Oct 04 Oct 09 Oct 15 Oct 23 Oct 29 Oct 31 Details F Law G Harding S Wilks L Ryle F Law G Harding Transferred to Sales Account Net Amount ? 612 436 370 810 354 508 3 090 (b) Sales Ledger 20X8 October 01 F Law ? 612 Sales 20X8 October 04 Sales G Harding ? 436 20X8 October 09 Sales S Wilks ? 370 44 L Ryle 20X8 October 15 Sales ? 810 20X8 October 23 Sales F Law ? 354 20X8 October 29 Sales k G Harding ? 508 General Ledger (c) Sales 20X8 ? October 30 Credit sales for the month 3 090 Question 2 (a)

Sales Day Book Date 20X5 July 02 July 07 July 12 July 18 July 23 July 30 July 31 Details D Smith T Ronald N Smithers L Malt D Smith T Ronald Transferred to Sales Account Net Amount ? 488 480 256 186 221 435 2 066 (b) Sales Ledger 20X5 July 02 D Smith ? 488 Sales 45 20X5 July 07 July 30 Sales Sales T Ronald ? 480 435 N Smithers ? 256 20X5 July 12 Sales 20X5 July 18 Sales L Malt ? 186 20X5 July 23 Sales D Smith ? 221 General Ledger Sales 20X5 July 31 Credit sales for the month ? 2 066 Question 3 (a) Purchases Day Book Date 20X3 April 01 April 03 April 10 April 14 April 21 April 27 April 30

Educational researchers praise the practice of parents and teachers reading to children. In a book aimed at helping parents provide their children with useful learning experiences, for example, Butler and Clay (1999) asserted: “There is no substitute for reading and telling stories to children, from the very earliest days” (p. 17). Based on his review of the literature on reading to children, Teale (1991) concluded that “reading to preschool children . . .

Is an activity through which children may develop interest and skill in literacy” (p. 902). And in Becoming a Nation of Readers, Anderson, Hiebert, Scott, and Wilkinson (1995) cited reading to children as “the single most important activity for building the knowledge required for eventual success in reading” (p. 23). Moreover, a number of correlational studies have linked activities in which adults and preschool children share book reading to the children’s beginning reading success in school (Hewison & Tizard, 1990).

Such unabashed praise for reading to children is intriguing because it begs for elaboration: Why is reading to young children thought to be so beneficial? What knowledge do children acquire from it? Although asserting the value of the practice of reading to children, researchers have given little attention to what children learn from it. Interactive story reading is a joint use of picture books to talk about the pictures, read the text, and discuss the story ideas.

Central to this definition is the notion that the adult and child (or group of children) construct an understanding of the book together. It is because of this emphasis on the joint construction of meaning that we prefer this term over others, such as shared reading, story reading, reading aloud to children, and guided reading that have been used in the research literature to label the event of reading to children. When adults read stories to young children, they usually do more than read the words aloud.

They ask meaningful questions about the stories. To make sure children understand the story, they paraphrase or interpret as needed, and they answer the children’s questions about it. From the research that has examined parent-child story reading, it is possible to explain the social nature of the event and to make deductions about what young children learn during it. The research on parents reading to children is based primarily on middle-class mothers reading to their preschool children at bedtime.

Moreover, the studies are often descriptions given by highly educated mothers reflecting on their practices with their children. A seminal work of this type is the Ninio and Bruner (1998) study in which it was found that highly ritualized discussion sequences between parent and child occur during story reading, and that these sequences are the primary means through which toddlers learn to label pictures.

Ninio and Bruner found that mothers interpret children’s smiling, babbling, vocalizing, reaching, and pointing as either requesting or providing labels. For example, a baby reaches toward one of the pictures in the book, and the mother extends that gesture by saying the name of the picture. Moreover, if the baby vocalizes or gestures toward the picture when the mother gives a label, the mother assumes that the baby is attending to the name she gave, furthering the likelihood that she will continue to provide labels.

These parentchild interchanges are orchestrated into turn-taking sessions, with parent or child initiating a communication. At about the same time that Ninio and Bruner were reporting their work, Snow (1993) began reporting her analyses of mother-child discussion during book sharing. She posited that the features of the interactions that support oral language acquisition are the very same features that promote beginning reading and writing development.

She highlighted four such features: (a) semantic contingency, or the adult continuing a topic introduced by the child’s previous statement through expansions, extensions, clarifications, or answers; (b) scaffolding, or the steps the adult takes to minimize the difficulty of the activity; (c) accountability procedures, or the way the mother demands the task be finished; and (d) the use of highly predictable contexts for language use that help the child move from the concrete here and now to the remote and abstract.

Elaborations on these four features illustrate how children learn about reading through social interactions during interactive storybook reading. The use by adults of semantic contingency, or meaningfully extending a child’s comment to facilitate oral language acquisition, has been well documented (Cross, 1998). Snow (1993), however, argued that when adults expand on or clarify text during storybook reading, they facilitate the development of literate behavior.

For example, adults can answer children’s questions about letter names and words, they can clarify story meaning, and they can extend children’s understanding of story concepts such as what direction one reads print or where a word begins and ends. Not only is the discourse during interactive story reading expansive in nature, Snow argued, it is scaffolded. Drawing from Bruner (1998), she defined scaffolding as the “steps taken to reduce the degrees of freedom in carrying out some task, so that the child can concentrate on the difficult skill he is in the process of acquiring” (p. 170).

Scaffolding occurs in oral language development. For example, although young children often say only one word for a whole sentence when they are learning to talk, parents respond by treating the word as a complete and sophisticated statement. In story reading, scaffolding might include parent reminders to the child about the name of the story, who the important characters are, or what the story problem is. The parent might point to a picture and then its printed label, hesitate to see if the child fills in a story word or phrase, or encourage the child to help tell parts of a story.

Snow also argues that parents challenge their children during reading sessions by holding them accountable for what they do to help construct the session. Snow and Ninio (2006) proposed seven tenets of literate communication from the interactions during the reading event that, although not explicitly taught, help children become literate. These tenets are (a) that a book is for reading rather than manipulating, (b) that a book controls the conversation, (c) that pictures are events, (f) that book events occur outside of real time, and (g) that books are an independent fictional world.

It is clear that parents help children take over storybook-reading talk, and that this practice encourages children’s later strategies for talking about and interpreting books. The descriptive research shows clearly that children experience opportunities for learning from engaging in interactive story reading with parents, and that the interactions have characteristic patterns that children imitate and that could promote literacy development.

The nature of the dialogue that occurs during interactive book reading is affected by factors that include the size of the group, the competency of the participants, and the familiarity and type of the text. Yet a basic framework can be seen. When parents or teachers model, read, and talk to children about a text, they provide a structure that helps children understand and remember the story content.

By promoting socially interactive story reading in which both reader and listener actively participate and cooperatively negotiate what is important and what things mean, teachers engage children in a process of learning through social interaction. It appears that, not only do children internalize the social conventions of stories when they talk with adults about them, they take away specific knowledge from hearing stories, such as the syntax, organization, and word forms used in written language, and knowledge of its elements – words and letters themselves.

Explanations of how children move into independent word reading have assumed a strong relationship among letter knowledge, phonological awareness, and reading (Ehri, 1999). Reading requires children to attend to the sounds in words and to the letters that symbolize those sounds. New evidence from interactive reading studies suggests that interactive reading may be another way to draw children’s attention to print and to the ways that letters sound in words. through interactive reading, children begin to remember the story dialogues.

In the process, they acquire written language structures and new vocabulary and then begin to focus on print and letter concepts. The research documents that these aspects of literacy learning can appear both at home and in the classroom. Therefore, both parents and teachers can promote young children’s literacy acquisition through interactive story reading. At home, children can learn at a fairly optimal level because most parents are sensitive to their children’s developing abilities in language.

Parents can connect book information with their children’s background experiences, and they are better attuned to the children’s interests and level of understanding. At school, teachers achieve similar effects if they organize the story reading to elicit maximum participation from all students and if they repeatedly read stories. The theoretical construct posited by Vygotsky helps to explain how learning occurs. When reading to children is a social event, children’s book explorations are refined through the verbal and nonverbal interactions that take place during the reading.

During the reading, adults highlight and interpret the reality of the book, its written language features, vocabulary, and print forms, and the children mimic and modify the language to fit their understanding. Structured interactions enable children to add these understandings to their current viewpoints through play with the language, questions, comments, and attempts to extend their understandings by making sense of new situations with the book language and print.

From this theoretical perspective, it becomes obvious that reading to children without allowing discussion is not likely to be sufficient for developing the ability to use written language. If the goal is to teach literacy, an adult should mediate the ideas in books by keeping within bounds of children’s understandings and by using an interactive story reading approach. Then, story reading becomes a way for young children to acquire knowledge about written language at new levels of understanding.

Their face-to-face communication with adults provides a way for them to ask questions, comment about what makes sense, and use book language and book ideas. Although picture books provide essential picture and story line context, the language is without intonation, gestures, and pitch until an adult reads it to the child. But, through mediation of this language, the child learns to interpret, apply, and transfer the sophisticated written language to their own oral language. Thus, literacy learning opportunities abound in interactive reading sessions.

The process takes place through highly structured social interactions, interactions that involve routine joint participation sequences, in which the adults help children make connections to their own knowledge, and in which children make known their old understanding and practice their new understandings. Although this approach is easier for parents who are reading to one child, sufficient evidence now exists that teachers can read to small groups of children in a similar way, particularly in situations where teacher-group interactive language structures are fairly routinized, such as in rereading stories.

Children learn about three aspects of literacy when they engage in interactive reading. First, they acquire knowledge about written language structures from the stories that they read interactively with an adult on a regular basis, and that they can talk about, act out, and use to play with story language. This suggests that teachers need to provide opportunities for children to hear and talk about stories. Second, they acquire new vocabulary from listening to stories.

Children’s oral language is embellished with new words and book phrases that are drawn from the book they hear read, particularly those they hear read repeatedly. Their attention to story information thereby becomes more focused and their listening comprehension improves. Finally, children learn about the form of print, that is, about how language is graphically represented, when they have opportunities to memorize texts and recite them as though they were reading. Their learning can be heightened when the print in the stories is salient, and when they hear repeated readings.

Repeated reading is an activity particularly well suited for preschool and kindergarten classrooms and will foster development of children’s letter knowledge and phonological awareness, which can be connected to later word and letter recognition and to decoding. It is clear from more than a decade of research that interactive story reading is a powerful social avenue for developing language and literacy, and that it can be used as an influential literacy tool both in the home and in the school; that is, as Cochran-Smith (1984) has said, the child and adult bring to life books, and books enrich children’s lives.

Works Cited Anderson R. C. , Hiebert E. H. , Scott J. A. , & Wilkinson I. A. G. (1985). Becoming a nation of readers: The report of the Commission on Reading. Champaign, IL: Center for the Study of Reading; Washington, DC: National Institute of Education. Butler D. , & Clay M. (1999). Reading begins at home: Preparing children for reading before they go to school. London: Heinemann. Cochran-Smith M. (1984). The making of a reader. Norwood, NJ: Ablex. Cross T. G. (1998). “Mother’s speech and its association with rate of linguistic development in young children”. In N.

Waterson & C. Snow (Eds. ), The development of communication. London: Wiley. Bruner J. S. (1998). “Learning how to do things with words”. In J. S. Bruner & R. A. Garton (Eds. ), Human growth and development. Oxford, England: Oxford University Press. Ehri L. C. (1999). “Movement into word reading and spelling: How spelling contributes to reading”. In J. M. Mason (Ed. ), Reading and writing connections (pp. 65-82). Boston: Allyn & Bacon. Hewison J. , & Tizard J. (1990). “Parental involvement and reading attainment”. British Journal of Educational Psychology, 50, 209-215.

Ninio A. , & Bruner J. (1998). “The achievement and antecedents of labelling”. Journal of Child Language, 5, 1-6. Snow C. E. (1993). “Literacy and language: Relationships during the preschool years”. Harvard Educational Review, 53, 165-189. Snow C. E. , & Ninio A. (2006). “The contracts of literacy: What children learn from learning to read books”. In W. H. Teale & E. Sulzby (Eds. ), Emergent literacy: Writing and reading (pp. 116-138). Norwood, NJ: Ablex. Teale W. H. (1991). “Parents reading to their children: What we know and need to know”. Lrnguage Arts, 58, 902-912.

Reading has been proven to create a proliferation of insights and ideas on the reader. During the process, it creates an avenue of learning for an individual. The capability of books to tap curiosity, interest and learning paves the way for better appreciation of the different fields and provide continued growth and development for a person. The capacity of books to address every age group has provided numerous benefits to each one. This part shall look into to children. Inviting children to read books at an early age can create a fun and fruitful way to discover new things that life has to offer them.

Even the simplest form can create a lasting effect in their lives. “Children are never too young to enjoy books, and for babies it’s not just about reading the words. It’s also about enjoying the interaction with the parents as the child sits with them and enjoys the attention. ” (The Kids Window, p. 1) Creating appreciation for books at an early age can give children the proper foundation for the future. “It’s also a good age to learn the basics of language and numbers, and reading along to stories and counting books will aid their understanding of words and numbers. ” (The Kids Window, p. 1) For teenagers, reading is also deemed vital.

Studies have shown that people with a keen interest in reading show exemplary performance not just in school but also in other activities as well. “When teens read more than just their classroom assignments, research clearly shows that they generally do well in school. ” (Gisler & Eberts, 2006, p. 1) Reading creates avenues for children to expand their horizons over their area of interests. This helps them in addressing the challenges present in school. Reading can help increase vocabulary, deepen analytical skills and improve writing skills. “This leads to a solid core of knowledge that is useful in a wide variety of classes.

” (Gisler & Eberts, 2006, p. 1) Lastly, reading among teenagers gives them the capacity to perform well in the future particularly college exams. “No other activity builds the vocabulary and comprehension skills needed to do well on these tests as well as reading. ” (Gisler & Eberts, 2006, p. 1) For adults, reading can create huge benefits. Adults will “have a better chance for a successful, fulfilling adult life. ” (Jewell, 2007, p. 1) Adults can use books to inform of them of new trends and issues present in the environment. With these they can be more adaptive and dynamic to change.

“And with the explosion of information in the workplace, only avid readers can stay well informed with relative ease. ” (Jewell, 2007, p. 1) Reading can also help adults to “acquire the ability to sift information and to understand how unrelated facts can fit into a whole. ” (Jewell, 2007, p. 1) By practicing reading as an alternative for work, it can help adults be relieved from stress and fatigue. With reading, adults can learn additional information, critically assess important things, impart experiences and beliefs and at the same time enjoy from the pleasure it brings. To conclude, reading has been an important facet of human behavior.

Maintaining a passion for reading can create unlimited opportunities for the reader. Given the positive effects that reading can give to an individual, it is important not to neglect and be taken for granted. As new technology creates opportunities for each individual to tap on new ideas, information and pleasure easily, preference for reading books is slowly diminishing. The challenge now is to revitalize reading to people. People must reach out to the public and create awareness of what reading can contribute to society. Be able to prove that until now reading is still vital in the holistic growth and development of an individual.

In the end, reading will still be an important activity that can create possibilities for all people wherever age group they are in. References Eberts, M. Ed. S and Gisler, P. Ed. S (2006) Benefits of Reading as a Teen. Retrieved October 11, 2007 from http://school. familyeducation. com/teen/reading/40617. html Jewell, A. V. (2007) Benefits of Reading in family. org. Retrieved October 11, 2007 from http://www. family. org/entertainment/A000000969. cfm The Kids Window. Young Children and the Benefits of Reading. Retrieved October 11, 2007 from http://www. thekidswindow. co. uk/childbooks/benefits-of-reading. htm

David Mamet’s Bambi vs. Godzilla: On the Nature, Purpose, and Practice of the Movie Business is one of the latest books written by David Mamet. The book is about the sharp views that Mamet makes about the movie business and the inner doings of Hollywood. On 30th November 1947 Lenore June gave birth to a boy in Chicago who was named David Alan Mamet. Mamet’s mother Lenore June was a teacher and his father Bernard Morris who was an attorney. (Film Makers, Pp 1)Mamet is an American movie director, writer, novelist, dramatist, and a screenwriter.

He is famous for his works which are well-known among people for their clever, short, and at times offensive dialogue and his mysterious styled phrasing sense. (Film Makers, Pp 1) Mamet has received a number of award nominations like he got nominated for Tony Award for Glengarry Glen Ross (1984) and Speed-the-Plow (1988). He was acknowledged with Oscar suggestion for Wag the Dog (1997) and The Verdict (1982) as a playwright. (Film Makers, Pp 1)

Some of his recent books include The Old Religion written in1997, it is a novel about the execution of Leo Frank; Five Cities of Refuge: Weekly Reflections on Genesis, Exodus, Leviticus, Numbers and Deuteronomy written in 2004, an explanation of the Torah, The Wicked Son written in 2006, contains a deep study of the Jewish self-hatred and anti-Semitism; and Bambi vs. Godzilla, a book having sour comments and is a collection of essays on the movie business. (Gabriel Steinfeld, Pp1) In this book Mamet gives us a revolutionary inside look at Hollywood from the point of view of a film-maker.

The title brings together an impressive, arresting and a weird metaphor that is “Bambi vs. Godzilla,” which refers to an old underground small cartoon, with long and graceful subtitle which is expressed in more literary language that showed off his intelligence. The subtitle which is “On the Nature, Purpose, and Practice of the Movie Business” shows that this book is a collection of essays on different phases of film making which includes production, direction, behind-the-scene stories etc. The book consists of eight major sections and forty-odd short chapters.

The eight major sections contains the titles such as “The Screenplay” ( this section provides the steps to effective skill writing), “Technique” , “Genre” and “Some Principles” are the sections that covers the areas of film criticism , “The Good People of Hollywood” (this section of the books covers dissimilar topics, that are mostly related to the power dynamics that take place behind the scenes of movies), “The Repressive Mechanism” (this section is somewhat freely linked by the subject of power and the relation of art to it), “Passing Judgment” ( this section covers the part of acting and criticism), “Crimes and Misdemeanors” (covers the portion of the cheats and the dishonesty that big names make in the Hollywood). (Gabriel Steinfeld, Pp1) He in details explains what happens at the studios, what happens during the shooting of a movie and various questions which arise in the mind of a common man.

Mamet presents a clear-cut view of the deepest and the secret inner workings of the general movie industry and particularly concentrates on Hollywood in the book. Mamet provides entertaining, astonishing, and willingly gives the answers to questions about almost every portion of filmmaking, right from the concept to script and to the screen. (Gabriel Steinfeld, Pp1) Before Bambi vs. Godzilla Mamet wrote and directed a drama Spartan in 2004, which was very much mishandled by Warner Bros. they didn’t knew how to present this drama to audience so after a short period of time they dumped this drama. The way Spartan was handled and treated Mamet could be expected to reveal his anger and rage through this book he had for the studios and the film industry.

Even though several of these pieces were written before the Spartan misfortune, Mamet showed his disapproval for the present structure and organization of conventional cinema and to show his disapproval he does not even waits for the main chapters to start he begins it from the introduction of the book. (Gabriel Steinfeld, Pp1) In the book Mamet covers a wide range of topics that range from “How Scripts Got So Bad” to the “Manners in Hollywood. ” He takes us gradually through some of his personal favorite movie stunts and directorial tricks, and clearly in the film speaks aloud the fact that it is the craft and the crew that make great films not the actors and producers.

He also tells the audience in the books that who are his preferred and much loved performers and what are his favorite films, according to him who he thinks is the most ideal actor that would bring elegance to the screen, and who he thinks should never have showed on screen. (Christopher Hirst, Pp1) Modern or Post-modern? Mamet was post-modern in his artistic perspective. He has used to portray art which is considered to be in disagreement to a number of features of modernization, or to have appeared or developed in its consequences. In common activities for instance inter-media, setting up art, theoretical art and multimedia, mainly connecting video are illustrated as postmodern.

The qualities linked with the exploit of the expression postmodern in art incorporates bricolage, utilization of vocabulary significantly as the fundamental creative constituent, collage, generalization, misappropriation, representation of user or accepted civilization and presentation art. The book is written about the present situation of Hollywood. David Mamet speaks about the flaws of the film industry. His way of writing and his ideas clearly shows that he is a man of modern culture. He looks at the modern situation of the film industry and suggests ideas that could make drastic changes in the film industry of today and those would pertain in the future. The choice usually Mamet makes for his actors would be disapproved or ignored by the current film-makers but if they looked through Mamet’s point of view Hollywood would very soon start to produce well-crafted and outstanding movies of its time.

(Christopher Hirst, Pp1) References Christopher Hirst ,Paperbacks: Bambi Vs Godzilla, by David Mamet, (2008) Retrieved 01-02-2009, from http://www. independent. co. uk/arts-entertainment/books/reviews/paperbacks-bambi-vs-godzilla-by-david-mamet-864393. html Gabriel Steinfeld , Book reviews: Bambi vs. Godzilla: On the Nature, Purpose and Practice of the Movie Business, by David Mamet,(2009) Retrieved 01-02-2009, http://www. helium. com/items/536905-book-reviews-bambi-vs-godzilla-nature-purpose-practice-movie-business-david Film Makers, David Mamet. Media Pro Tech Inc. (2006). Retrieved from: http://www. filmmakers. com/artists/mamet/biography/index. htm

Virginia M. Axline as the author, narrator of the book, doctor-psychologist and being one of the pioneers in doing clinical cognitive technique using series of play therapy, successfully brought out the best of an emotionally crippled/mentally challenged Dibs. Way back in 1964, in which the book has published, neither the people nor the society do not understand and accept such Dibs condition and characterized it as a mental illness that family who has members like Dibs treat it as an embarrassing thing.

Nowadays with modernized and advanced approach in research and studies, the society has evolved, and people now have a broader mind of thinking, perspective and acceptance. There are now some practices and scientific categories in which the case of Dibs can be classified as being a late-bloomer rather than autistic or mentally defective, which has normally evolved only after reaching a certain age.

In that case, Axline was just lucky enough that she became the instrument of Dibs’ coming out from his own world as a new kid with lots of potentialities to give. Furthermore, it is understandable why Axline needed to hide the true identity of the kid and gave him the pseudonym Dibs, which in some ways, the whole story looks like a doubting half-truth narration. And this is because Dibs is only five years old, innocent and fragile when she happened to met him and played as his mentor/therapist.

However, there are still some discrepancies in the story such as the truth behind Dibs’ parents neglecting and estranged behavior over Dibs irregardless of his condition which has supposedly requires much more special love, care and attention from them especially that they both came from a wealthy and well-educated background. Another discrepancy that could be noted is Dibs’ parent’s sudden change towards him. The happiness of having a genius child urged them to treat their child positively, especially the mother, and it is normal. But is that so? Why all of a sudden?

Isn’t it ironic? We all know that affluent people do not always bend down their own pride in the blink of an eye. Did they undergo some emotional therapy while Axline is taking charge of Dibs? Perhaps. But there are no stories in the novel about such thing. The book Dibs In Search of Self entails success over scientific method on unknown trials. It is Dibs who have the mental challenge issue and the main character of the book that is subjected to Axline’s study of clinical cognitive technique via play therapy. But along the way, it is not only Dibs who surpassed the trial of fate.

Rather, the book also imparts Axline’s success of doing such play therapy approach. There are some topics and intrigues looped in the psychology circle during those times that Axline has just only created the success story of Dibs to make herself applauded and boost her name over her colleagues. But whether Dibs is just a fictional character of Axline, the lesson that the book has brought about will never be questioned. And this is the lesson that when someone believes in oneself and guide him to manifest his own potentials, positive results will always come out.

William Faulkner was born on September 25, 1897, in North Albany, Mississippi. He was Nobel Prize winner in 1950 for literature and one of the great southern writers who narrated the traditions and chauvinism of his own regional culture to describe his novels and short stories. The characters in his work are memorable forever. “Dry September” is a short story, written by him in 1931, composed in five parts. “Dry September,” is dealt about the life of white woman’s unconvinced blame of abuse against a black man and the prejudiced reaction of the townsmen.

The story is about the events connected the murder of Will Mayes but the actual events of murder is not well mentioned to divert the attention of a reader towards the causes of violence psychologically as well as physical torture. George Marion O’Donnell calls Faulkner “a really traditional moralist, in the best sense” . In this story Minnie Cooper was neglected by the society and her feelings about her womanhood affected her psychologically, rather than the murder of Will Mayes.

Faulkner mentioned the words like “lifeless”, “breathless”, and “dry” to symbolize the neglected value of Miss Minnie’s in society because her sexual life is considered as dead. Faulkner narrates the view of Minnie’s motive so unfair to the character of Will Mayes. In “Dry September” the townspeople, particularly Minnie Cooper and McLendon, give such importance to Will Mayes’s race than the quality of his moral character. This failure to understanding by other human beings was one of the major events connected to the death of Will Mayes.

Miss Minnie Cooper was psychologically tortured by the society and finds it difficult to accept herself that what the society thinks about her. Ferguson asserts that Faulkner’s greatest stories—“Dry September” among them— “always deal with this fundamental human truth” . When her friend’s children call her ‘aunty’ she objects and likes to being called as cousin. She wants to change their impression of her and she wants to be liked by them. As like Will Mayes was murdered in spite of his innocence, Minnie is disgraced from the society even though she did not made any mistake.

Volpe says, “the characters in Faulkner’s southern society are drawn from three social levels: the aristocrats, the townspeople, and the Negroes” . Early southern society was well known for the great importance of woman’s purity. An unmarried woman was supposed as pure. In this story, Faulkner narrated the role of Miss Minnie Cooper in “Dry September” as a spinster. This story is a devasting critique of the southern stories that dealt with the lives of women. The story presents Faulkner’s analysis of societal supremacy based on gender.

Narrating the southern society this story is a mixture of past and present events to portray the motivation of characters. Hence it remained as a critique of southern society. References: Ferguson, James. Faulkner’s Short Fiction. Knoxville: University of Tennessee Press, 1991. O’Donnell, George Marion. “Faulkner’s Mythology. ” Faulkner: 4 Decades of Critcism. Ed. Linda Welshimer Wagner. Michigan State University Press, 1973. Volpe, Edmond. A Reader’s Guide to William Faulkner. New York: Octagon, 1974.

Richard Wright’s novel “Black boy” is a “Coming of age” novel recording the childhood of the narrator Richard Wright in 1945. He tells his story about being an African- American, from his early childhood to his being an adult at 29 years old.

Richard Wright tells his story in the first person occasionally thinking seriously about how the other people in the novel think or feel, leading to the reader to think that the narrator may be a real historical figure. Set in 1912-1937, primarily Jackson, Mississippi; West Helena, Richard Wright demonstrates the individualism, and intelligence he must hide because of his being a black man in the Jim Crow South.

Richard Wright struggles as a black boy for acceptance and humane treatment. He graduates public school and enters the workforce where he is beaten up and terrorized by local racist whites. Richard struggles stubbornly to get out and make something of himself outside of the Jim Crow South. Obsessed with writing and reading, he wants to become a writer after reading “H. L. Mencken’s “A book of Prefaces. ” I find the character dynamic as he demonstrates a kind of great role model for someone who is or was oppressed.

He admires Jean-Pierre Sartre, and becomes a existential philosopher believer, believing life is only meaningful when we struggle to make it so. [At the age of twelve, before I had had one full year of formal schooling, I had…a conviction that the meaning of living came only when one was struggling to wring a meaning out of meaningless suffering. At the age of twelve I had an attitude toward life that was to…. make me skeptical of everything while seeking everything; tolerant of all and yet critical and could only keep alive in me the enthralling sense of wonder and awe in the face of the drama

Order#31115029 Black Boy by Richard Wright Pg. 2 of human feeling which is hidden by the external drama of life;” end of chapter 3]. I admire the character of Richard when he leaves the South at nineteen for Chicago to find what he thinks is a much better, dignified life. In this the author exercise’s his ambition as well as his talent as a writer. I believe Richard Wright understood the importance of writing about his experiences we see this when he writes about the hardships of racism as a black youth in the South and when he records his experiences through his writing.

He enters the Communist Party and W. P. A. programs to find something more meaningful and comes into contact with his fellow serious writers to to write individual ideals about life he thinks are important as a living in a commune. He judges people from his experience and thinks the fundamental problems of social existence is a lack of “human unity,” not the need physical food or survival. I believe he wants his fellow African Americans to know their identity and come together as a powerful union to combat prejudice. [My life as a Negro In America had led me to feel….

that the problem of human unity was more important than bread, more important than physical living itself, for I felt that without a common bond uniting men…. There could be no living worthy of being called a human; beginning of Chapter 18]. Sadly Richard is thrown out from the Communist party after he has a new vision. I understand his thoughts about life is general and is an endless swirl of pain and suffering, believes the exciting experiences in life are the attempts to make order and form from chaos. It is what he thinks about his own writing, ideas, and art.

I believe he hoped to accomplish in writing “Black boy” more than a reorder of his own past to understand himself, but he was also trying to understand his readers as well. [I would make his life more intelligible to others than it was to himself. I would reclaim his disordered days and cast them into form that people could grasp, see, understand, and accept,” Chapt 19]. -Works Cited- Black Boy by Richard Wright (1945): Benet’s Reader’s Encyclopedia Fourth Edition Edited by Bruce Murphy; 1996. Sparknotes: Black boy: Themes, motifs, & symbols WWW. Sparknotes. com/lit/ blackboy/themes. html