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
Shakir started trading in the year ended 31 August 2023 but did not keep proper books of account. His assets and liabilities at 1 September 2023 are as follows. $ Motor vehicle 9 500 Inventory 1 240 Cash at bank 1 682 Trade payables: Latif Harrison REQUIRED Prepare the journal for Shakir’s opening entries at 1 September 2023. A narrative is not required. Shakir Journal Date Details Debit $ Credit $ State two advantages of maintaining double entry records. During September 2023, the following transactions took place. Sept 2 Paid rent, $420, by credit transfer Withdrew cash, $350, from the bank for business use Paid Latif, $194, by telephone transfer, in full settlement of the amount owing at 1 September 2023 Sold goods on credit, $195, to Sydney Paid $161, cash, for wages Cash sales, $290, were paid directly into the bank account Received a cheque, $100, from Sydney Paid $95 to Harrison, by electronic transfer, having deducted $5 cash discount from the amount due REQUIRED Prepare Shakir’s cash book on the page opposite. Balance the cash book and bring down the balances at 1 October 2023. Shakir received a bank statement dated 30 September 2023. The bank statement showed that Shakir had $763 in the bank account. On comparing the bank statement to his cash book, Shakir noted the following. Bank charges, $35, were charged by the bank in September. Cash Sales, $175, had been paid for by credit transfer but not recorded in the cash book. The cheque received from Sydney had not yet been cleared by the bank. The cash sales, $290, had been omitted from the bank statement in error. REQUIRED Calculate the corrected bank balance.
7707_w23_qp_23
THEORY
2023
Paper 2, Variant 3
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Questions Discovered
29