2. Sources and recording of data
A section of Accounting, 7707
Listing 10 of 79 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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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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Questions Discovered
79