1.2. The accounting system
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 134 questions
Delph started trading on 1 July 2016. For the year ended 30 June 2017 he provided the following information relating to his sales and purchases. $ Bank payments to credit suppliers 39 826 Cash purchases Credit purchases 74 779 Credit purchases returns 6 813 Discount received 1 764 At 30 June 2017 Sales ledger control account balance 21 555 Debit REQUIRED Explain two benefits of using control accounts. Additional information The following book-keeping errors have been discovered in the sales ledger: The sales journal total for June 2017 was understated by $1470. A customer’s invoice for $2910 was entered in the sales journal as $2190. Discounts allowed in June 2017 amounting to $435 were debited to the sales ledger control account. A sales invoice for $1520 dated 30 June 2017 was omitted from the sales journal. REQUIRED Prepare the amended sales ledger control account at 30 June 2017. Delph Amended sales ledger control account $ $ Balance b/d 21 555 Additional information At 30 June 2017 there was a debit balance on the purchases ledger account of $384. REQUIRED Prepare the purchases ledger control account for the year ended 30 June 2017. Delph Purchases ledger control account $ $ Additional information Delph has also provided the following information. At 1 July 2016 $ Capital introduced 10 500 Loan from the bank (repayable 2021) 3 000 During the year ended 30 June 2017 Bank payments Motor vehicle 13 560 Loan Drawings 12 625 At 30 June 2017 Inventory 3 700 Debit Cash in hand Debit Rent Debit Bank Credit Wages 1 890 Credit The motor vehicle is to be depreciated at 25% using the reducing balance method. REQUIRED Prepare the statement of financial position at 30 June 2017. Delph Statement of financial position at 30 June 2017 Additional information Delph has calculated the following ratios for the year ended 30 June 2017 for his own business and for his main competitor, Nadia. Delph Nadia Gross margin 26% 21% Profit margin 9% 12% REQUIRED Advise Delph whether or not his business is more profitable than Nadia’s business. Justify your answer.
9706_m18_qp_22
THEORY
2018
Paper 2, Variant 2
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Eden runs a small business and has provided the following information for the year ended 31 December 2019. $ Trade receivables at 1 January 2019 45 000 Contra sales ledger to purchases ledger Discounts allowed 1 025 Discounts received Interest charged on a customer’s overdue account Irrecoverable debt Receipts from trade receivables 128 600 Returns inwards 2 500 Returns outwards 1 800 Total sales 190 000 20% of total sales are cash sales; the remainder are credit sales. REQUIRED Explain three advantages to a business of preparing control accounts. Prepare the sales ledger control account for the year ended 31 December 2019. Sales ledger control account $ $
9706_m20_qp_22
THEORY
2020
Paper 2, Variant 2
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Questions Discovered
134