2.1. The double entry system of book-keeping
A subsection of Accounting, 7707, through 2. Sources and recording of data
Listing 10 of 29 questions
Nakul is a trader. He buys and sells goods on credit. He buys most of his supplies from one supplier, Nadia, who allows Nakul a trade discount of 20%. The following transactions took place in January 2022. Jan Paid $441 by cheque to Nadia, in full settlement of $450 owed to her at 1 January 2022. Bought goods on credit from Nadia, list price $350 Returned faulty goods to Nadia, list price $80 Bought goods on credit from Nadia, list price $400 Sold goods on credit, $800 Bought goods on credit, $60, from Sophie Returned goods to Sophie, $9 REQUIRED Prepare the purchases journal for January 2022. Total the journal and indicate the ledger account to which the total would be posted. Nakul Purchases journal Date Details $ $ Prepare the purchases returns journal for January 2022. Total the journal and indicate the ledger account to which the total would be posted. Nakul Purchases returns journal Date Details $ $ Prepare the account for Nadia, for January 2022, as it would appear in the books of Nakul. Balance the account and bring down the balance on 1 February 2022. Nakul Nadia account Date Details $ Date Details $ Complete the table by placing a tick (3) to show where each item is shown on the statement of financial position. Current liabilities Non-current liabilities Trade payables Bank overdraft Nakul has a bank overdraft and would like to reduce it. He is considering paying his suppliers later than he currently does in order to help him reduce his bank overdraft. REQUIRED Advise Nakul whether or not he should take longer to pay his suppliers. Justify your answer by providing two advantages and two disadvantages.
7707_s22_qp_21
THEORY
2022
Paper 2, Variant 1
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Rasheed started a business on 1 October 2021. He maintains a petty cash book in the business. A monthly imprest of $100 is restored on the first day of each month. REQUIRED State two advantages of maintaining a petty cash book. Rasheed’s transactions for the month of September 2022 were as follows. $ September 2 Paid taxi fare 7 Paid purchases ledger account of Crystal 13 Bought postage stamps 18 Paid purchases ledger account of Kalpa 25 Paid bus fare 29 Paid cleaner REQUIRED Complete Rasheed’s petty cash book for the month of September 2022 on the next page. Balance the petty cash book and bring down the balance on 1 October 2022. Clearly show the amount required to restore the imprest. Record the entries which would be made in the following accounts in September 2022. It is not necessary to total or balance the accounts. Rasheed Postage account Date Details $ Date Details $ Purchases ledger Crystal account Date Details $ Date Details $ At the end of his first year in business Rasheed had a closing inventory of $8600. REQUIRED Prepare the inventory account at 30 September 2022. Balance the account and bring down the balance on 1 October 2022. Rasheed Inventory account Date Details $ Date Details $ At the end of his first year in business Rasheed would like to compare his financial performance with other businesses. Explain to Rasheed three problems of inter-firm comparison.
7707_w22_qp_23
THEORY
2022
Paper 2, Variant 3
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Questions Discovered
29