2. Sources and recording of data
A section of Accounting, 7707
Listing 10 of 79 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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Bilal is a trader. He buys goods on credit and for cash. He sells goods on a cash basis only. The following transactions took place in April 2020. April 4 Bought goods on credit from Milly, list price $320, subject to a trade discount of 20% Bought goods on credit from EHL Limited, $500 Bought stationery, $145, paying by cheque Cash sales, $280, were paid immediately into Bilal’s bank account Paid $128 cash to Milly Cash sales, $110 Bought goods on credit, $250, from Todd who offers 4% cash discount for payments made within 14 days Bought office equipment, $500, paying by bank transfer Paid by cheque for the goods purchased from Todd on 13 April after deducting the cash discount Paid $485 to EHL Limited by telephone transfer, having deducted 3% cash discount Sold old office equipment for $50 cash REQUIRED Prepare the purchases journal for April 2020. Total the journal and indicate the ledger account to which the total would be posted. Bilal Purchases journal Date …… … ……… …… … ……… ……… ……… Details ……………………………………………… ……………………………………………… ……………………………………………… ……………………………………………… ……………………………………………… ……………………………………………… $ ………… ………… ………… ………… ………… ………… $ ……… ………… ………… ……… ……… ………… Complete Bilal’s cash book on the page opposite. Balance the cash book and bring down the balances on 1 May 2020. Name one accounting principle applied by Bilal in each of the following situations. accounting principle The double entry for the posting of the purchases journal entries is completed by posting the individual amounts to the purchases ledger. The purchase of goods on 5 April did not include goods costing $55 which Bilal bought for his own use. The stationery purchased on 6 April had been recycled. This is expected to improve the reputation of the business. Reputation is not recorded in the accounting statements. The value of office equipment shown in the financial statements was based on its purchase price.
7707_s20_qp_22
THEORY
2020
Paper 2, Variant 2
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Questions Discovered
79