2.3. Books of prime entry
A subsection of Accounting, 7707, through 2. Sources and recording of data
Listing 10 of 36 questions
Shvan maintains a petty cash book using the imprest system. The imprest amount, which is $200, is restored every Wednesday. All payments of less than $75 are made from petty cash. All cash receipts of less than $75 are paid into petty cash. On 1 March 2023 Shvan had $61 in his petty cash box. He provided the following information for the first week in March 2023. March Restored petty cash imprest from the business bank account Paid $55 to Giles, a trade payable Paid taxi fare, $21 Paid $18 for notepads and pens Received cash, $25, from Mitchell, a trade receivable Paid $30 for office cleaning REQUIRED Prepare Shvan’s petty cash book for the first week of March 2023, on the page opposite. Balance the petty cash book at 7 March 2023 and bring down the balance at 8 March 2023. Shvan makes payments to Giles from his bank account as well as by cash. He provided the following information. March Owed Giles, $165, from February Paid Giles the amount outstanding on his account, by cheque Purchased goods on credit from Giles, list price $150, subject to a trade discount of 4% Prepare the account for Giles as it would appear in the books of Shvan. Balance the account at 31 March 2023 and bring down the balance at 1 April 2023. Shvan Giles account Date Details $ Date Details $ Shvan is considering whether to stop keeping cash at his business premises. He would require all customers to transfer payment directly into his bank account and he would make all business payments from his bank account. REQUIRED State one way Shvan could pay his suppliers, from his bank account, other than by cheque. Advise Shvan whether he should stop using cash. Justify your answer by providing two advantages and two disadvantages of stopping using cash.
7707_s23_qp_21
THEORY
2023
Paper 2, Variant 1
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Lottie is a trader. Her financial year end is 30 April. She keeps her petty cash book using the imprest system. The imprest amount is $150. The totals of the payments analysis columns in her petty cash book for April 2024 are as follows. $ Cleaning Stationery Sundry expenses During April 2024, Lottie received a refund for damaged stationery, $15. This amount was received into petty cash. REQUIRED Calculate the amount required to restore the petty cash imprest on 1 May 2024. The petty cash book is one of the books of prime entry. REQUIRED State one other book of prime entry two advantages of using books of prime entry On 30 April 2024, Lottie sold a motor vehicle for $6000 on credit to Y Limited. She had purchased the vehicle on 1 May 2021 for $12 000. Lottie charges depreciation on vehicles at 25% using the reducing balance method. No depreciation is charged in the year of disposal. REQUIRED Calculate the accumulated depreciation on the vehicle at 30 April 2024. Prepare the disposal of motor vehicles account. Lottie Disposal of motor vehicles account Date Details $ Date Details $ Lottie sells 3 different types of goods. Her inventory at 30 April 2024 is as follows. Type Number of units Purchase price per unit $ Net realisable value per unit $ Carriage inwards per unit $ A B C REQUIRED Calculate the value of Lottie’s inventory at 30 April 2024. Lottie pays $360 per annum for insurance. On 1 May 2023, insurance of $60 was prepaid. On 1 August Lottie paid $360 by bank transfer for the year 1 July 2023 to 30 June 2024. REQUIRED Prepare the insurance account for the year ended 30 April 2024. Bring down the balance at 1 May 2024. Lottie Insurance account Date Details $ Date Details $
7707_s24_qp_22
THEORY
2024
Paper 2, Variant 2
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Questions Discovered
36