OO Chapter 1 Balance Sheetnm 2) Which taskis care out by 8 book-keeper? A analysing information 8 © Interpreting Information > 3) _ The following information wes extracteg from the financial statements of Bob. $ Tank overdrat 3008 inventory CLA To trade payables 2090 ede a |e ancl ropetables we cA ye edo How much extra capt would Bob have Li the vaio of i och cal wr Be tg make his working capt A $8090 B $11090 mq (© s4000 DB $20000 Uy Nek cumeak Arse 4) How is working pital ealelateg? ‘A. cerrent asset ~ cunt labios 7 B current assets + current liabilities | C _non-current (fixed) assets + current assets ~ current liabities: 1b en-corent ag) essen cyrentassens + cumeavepnes = TJ]3) ° 8) Which is not 2 current asset? A. cashinnand B moneyowed byacistoner tracks neaable, © prepaid bill for electricity 1D unpaid invoice from a supplier ‘What is meant by duality? ‘A. for every entry in the cash book there must be @ corresponding entry inthe bank statement 1B for every debtor there must be a creditor © there are two aspects ic every transaction D_ there are two sides to every balance sheet Which is @ current iiblity for a business? ‘A accrued interest charges on loan from bank 8 provision for depreciation of non-current assets © five-year loan from bank . insurance premium prepaid Which s « curent asset? A scerved wages: B banklan © rotor vices at cost D prepaidinsurance Other necend LQ, mn (| n Ok fy HOOWhy should @ sole trader recpr all the financial information about her business? ‘A because she is required to do so by law B because she needs to pay her creditors on time © sothat she can prepare final agcounts forced Stoel © sothat she knows how much her debtors owe her Aming sts her current assets in order of liquiity. Inwhich order wil the current assets appear? A. benk, cash, inventory trade receivables B cash, bank, rade reoslvables, inventory &) meray. D__ trade receivables, inventory, bank, cash3 PF ke arts. His financial id 30 September . nce makes engine pats. His financial year ends on . ae iis “ wollip Cap tol ‘The following items remained on Prince's books after the preparation of the income statement for the year ended 30 September 2012. $ Bank 50098 Bank loan (repayable 2018) 2800 Capital ‘6800 Equipment at cost 3500 Inventory 3900, Motor vehicle at cost ‘4500. Other payables ‘900 Provision for depreciation — equipment 600 Provision for depreciation ~ motor vehicle 1000 Trade payables 2700 Trade receivables 3000, REQUIRED (a) Propare Prince's balance sheet at 30 September 2012 on the following page.Prince Balance Sheet at 30 September 2012 cA ucts 212 orsots0n25 2 Anvil has propared the following trial balance (after calculating net profit) for the year ended 31 August 2005, Anvil ‘iil Balance at 31 August 2005 3 s Plant and equipment 45.000. “Motor cars 22.000. Provision for depreciation . Prant and equipment 42.000 Motor cars 5 400 SNe parle 3300 Bank and cash 22.400 Bank loan repayable 2008 15.000 Creditors Wvacls Pople 32.000 NUL ‘discover his business is doing better then in previoys yeary tofind outhow much money he has lef in the bank to know how much money is owed to suppliers ¥ 1) Fourbusinessag are of @ simi size ang sel similar products. Wich busngss is mst eicient at keeping ts overhead expences a minimum? JOC 1 | Total: 10] | fy fo} ra Sea] Aaa | Expewres jl « a | ie Bl 4 Py se c 55 a7 lav El fo. “ 147 business | gross proft.asa% ofsales | _net proftasa% of sales *« 12. The table shows the performance of two businesses, X and Y, in # financial year. 1 x 385, Y 280 86 115 A ¢ Whats revealed by comparing the ratios for X and Y? X controls its overhead expenses betier than Y. Y controls its overhead expenses better than X. X's cost of sales is higher than Y's. Y's cost of sales is highor than X's.13) Whatis shown by te percentage of net proftto revenue? A vnetherthe cost revenue has decreased 3 whether he expenses are wel convaled © whether the seling pcs has oreased 1D whether the inventory is being sold quickly engugh pe» ‘A trader sets his saliing price by aiding a profit igure on tp the cost price. tow oes hed? NF 6 oyna nec B by applying mark-up © by using the current ratio D by using the quick ratio a 1) Abusiness has calculated the following ratios: IO nm mn percentage of gross profit to sales | percentage of net profit to sales A cast of ssies decreased B cost of sales increased © verses screases D expenses increased Ie) hich is @ measure of protabilty? ‘current ratio Quick ratio rate of inventory tunover A B © @ return on capital employed ;G=)_A business provided the folowing information yet | yor? | years AY | arssorettas anerenagecteaes | 7% | are | arm 2 [raters percentage tsaus | sox | sow | 7% What does tis show? ‘A. control over expenses is getting better MO B control over expenses is gating worse © sales have reduced D sales have increased 1" 9g) Why does the owner ofa business need to know how much profit he has made? ‘A ‘0 calodate interest payable an a bank loan to calculate cost of sales © tocolculate the return on capital If D__ tocaleuate total expenses "1 {2 The table shows information reiting o two businesses trating in the same type of goods. [Bisress [rate ofinventoy turover [quick rato | y times @ year 1531 z tines year or: Which statement is correct? |A. Business Y has a good rate of inventory tumever but has poor liquidity. Bn inns precinct GQ sareerzhe sites tno otha ICL 1D Business Z has 2 poor rate of inventory turnover and hes paor quid nm 20) _Astvat supplies goods on credit to Sara In which of Sara's sccounting ratios would Ashraf be partculaty interested? ‘A. collection periog for rade receivables O B gross profit sales 0) rents et D rate of ventory turnover " 418 | Conrad has a supermarket and sells food and other groceries. Congo has a smaller shop ‘26d only sas fresh frult and vegetables, 7 ‘The folowing information is available forthe year endod 30 September 2012. Conrad Son 8 Revenue 120 000 48000 Gross promt 42.000 26 400 Profit forthe year 14.400 47 600 ‘Cepital at 1 October 2014 96 000 50.000 2) (0) Foreach business, calculate the percentage of gross profit to revenue. ‘Show your workings and gWve your answers to one decimal place. a um S 00° RL bW X10 We oe y | le eet ee 409 55u 4 (li) Give one reason for the difference in the percentage of gross proft to revenue bbetwoon the two businesses. 2g Adal .treiemadRtins ioans. coups. . a @19 (®) (For each business calculate the percentage of profit for the year to revenue. ‘Show your workings and give your answers to one decimal place. 14] (li) State one reason for the difference in the percentage of profi for the year to revenue between the two businesses. hea .2 XPQuné \ i a ee ) the Lichen. (©) () Foreach business calculate the return on the opening capital employed ‘Show your workings and give your answers fo one decimal place Conrad Tange 5 | | 1b}9”? rm A1699_ y\9° 5000? | t FAG fa 14] ouces zo ouszrsvonur2 [urn over20 (li) Give one reason for the difference in the return on opening capital employed For between the two businesses. enaniners Pectin i retin fone woe Prepary red maul eo ty Spr ath ban sug ad a ware pone Sy SECEDE ae ah tee yore 8 (ibrar poneciomsie sar est erry ante nator Exar prof Care Anema Gu, Canoe Anvoret he rrp of Uy Serie Sel taney (UC wh nn wage Umer ame eucues 212 cousansone @6 Jarvis Limited provided the following information about its assets and labilties: At31 March 2012 2013 8 s Machinery at book value ‘95000 76000 Fixtures and fitings at book value 11.000 36000 Vehicte at book value 4000 26000 Inventory 19000 27000 Trade receivables 16000 18000 Bank 8000 - © Trade payables 14000 21000 “Bank overdraft : 8000 Long term loan 40000 15000 (@) (2) Calculate to two decimal places the current ratio at beth 31 March 2012 and 31 March 2013, oe (ll) Suggest one reason for the change in the currant ratio, (hag en Span alance.: - Fhe dao ties. ppagalliea eucies 23 esas19 ©) ] Calculate to two decimal places the quick ratio (acid test ratio) at both 31 March 2012 and 31 March 2013. * W) Suggest one possible effect of the change in the quick ratio (acid test ratio). Hay cul. Oat {€) Suggest two reasons for the change in the company’s bank balance Puschaas....00n-cmwens amih, ome “auecal. =. = —‘Att correcting the financial statements, Rania Yousaf provided the following information: For cries . Ta Revenue forthe year ended 31 December 2011 87 000 Inventory att Janwary2011 opm 6000 Inventory at 31 Decambor 2011 ee, 7400 Gross prot margin 20% éaf B40 44; vo CoS = 61600 REQUIRED (€) Calculate the rate of invontory turmover. ‘Show your workings and give your answer to two decimal places, (9) The rate of inventory tumover was better in 201* than in 2010, Suggest one reasen for this. Aauid.a.icomuakous Pevala...Mini sobia.achily (g) State one factor that Tania Yousaf should consider before comparing the results of her business with those of another business. Qor50.09 euctes 22 oeszzinaurie [Turn over(h) State two reasons why tania Yousaf is interested in the financial statements of her | ror crodit customers. Banners (Stat one reason wty each ofthe folowing business peope are interested in Tania ‘Yousafs financial stator (Employee 2b Ma heen, “aptaaTiin,: (i) Bank manager actectthe ponaspeake. eet leas... 2 (Tota: 20) een SSeS ee le rie oy og ae ka Set atone URL Ss Sac a re euctes 2012 oesoasnuse eee16 5 Tazeen Shah is a wholesaler. Her financial year ends on 31 January. ‘She purchases all her goods on credit terms and is allowed 30 days credit by her suppliors. | “Zee All her sales are made on credit terms and she allows her customers 21 days credit. ‘She provided the following information. ” 34 January 2012 34 January 2013 Collection period for trade receivables 30 days 36 days Payment period for rade payables days Sore Ratu on capt employed (ROE) 15% 18% n a. (a) State the purpose of calculating the collection period for trade receivables, dosesthe caraoe (cx te brooks aecsinelbs » dave As. te Ht piel n {b) State whether Tazeen Shah will be satisfied with the change in the collection period for trade recelvables. Give a reason for your answer. (©) State whether the credit suppers will be satisfied with the payment period for the year ‘ended 31 January 2013. Give a reason for your answer. {@} Explain why it is important for Tazeen Shah to have an adequate amount of working 710 he able to Pay... dupls.. seocies 203 oeszzenans 557 (@) Tazeen Shah made the following transactions on 1 February 2073. State, giving a reason, how each transaction would affect Tazeen Shah's working |Z capital The frst one has been completed as an example. Effect on workin, ‘Transaction capital 0 Reason Paid $10000t0 At Finance as | Decrease Curent assets decresse part repayment of oan 10000 No change ncuron lites nN CAT ands $185 wore pustaes | NO Change ual ‘on edi fom Abu & Co C Phy dese paiss2eow ram aceat | CAL 2808 supple, nul sattement of | I. $300 owing 904 Cr. 00% No dagem ca ‘Withdrew $150 from the bank N ‘cash 0° $ oe Dose No dagen ce ] (| State whether Tazeen Shah willbe satisfied with the change in the retum on capital ‘employed (ROCE). euctes 203 ceszrzons| [Turn over ®18 ‘Mere Knumalo isa trader. Hor financial year ends on 31 March. ‘She provided the following summary of her assats and labilties on 31 March 2014. s 8 Capital 145000 Profit for the year 35.000 ‘Trade payables - 36 800 Bank overdratt ‘Short term loan 8.000 234.000 ‘Non-current assets leveniory Petty cash 400 ‘Trade receivables 37.400, 234000 ‘Forthe year ended 31 March 2014: : Revenue 450 000 Cost of sales 310000 Expenses 4105 000, ‘Mara Khumalo wishes to compare the performance of her business for the year ended ‘34 March 2014 with that ofthe previous financial year. {@) Complete the table below to show the ratios for Maria Khumalo's business for the year ended 31 March 2014, ‘Calculations should be correct to two decimal places. ‘You may use the space on the following page for your workings. Year ended $1 March 2018 2014 28.10% i __ percentage of profit forthe year to revenue (ales) a 10.25% AAS Ratio ‘percentage of gross profit to revenue (sales) current ratio 1.9551 Quick ratio, 0.90: 4Workings (©) Suggest two reasons for the change in the percentage of gross profit to revenue (sales). 1 (c) State the yeer in which Maria Khumalo had better control over her expenses. Give a reason for your answer. Year ended 31 March 20/3, Question 6(d) and (e) are on the next page. eUCLES 2014 [Turn over @20 (6) Complete the following table by placing a tick (¥) In the correct column to show how each of, the folowing transactions would affect the current ratio. “The frst one has been completed as an example, Increase | Decrease Receipt of long term loan v ‘Cheque paid to credit supplier ‘Goods taken for own use — Purchase of nor-corent asset on edt ral 8 {e) State whether Maria Khumalo would be satisfied with the change in her liquidity position Give 2 reason for your answer. ae reps tar won ry ores mtr acct nigh a ded ha bm sh re ces vow pub, vey SS TS RE ae a EE ete eg cnr aa SSIS ae eter ce pu ceri wteretrl nrc part Canine Awe Gene, Care ener iB ara vey ante os SSS ESAS TE Vleet Umer care excess ousaiMine @17 5 The financial year of Zlani Limited ends on 30 September. The following information is available, s 8 For the year ended 30 September 2014 Revenue (sales) 480 000 Cost of sales 310.000, Expenses ‘94 000 (On 30 September 2014 Capital employed 635 000 Inventory 30800 Trade receivables 56.000 86 600 Trade payables 51 500 Bank overdraft 18.300 Short term loan 500071800 REQUIRED (2) Calculate the percontage of gross profit to revenue (sales), ‘The calculation should be correct to twe decimal places. ‘The percentage of gross profit to revenue (sales) is lower than in 2013, (b) Suggest two roasons why itis lower. cxszremone [Tum over8 (©) Calculate the percentage of profit for the year to revenue (sales). The calculation should be correct to two decimal places. mn Flat TA haon. {@) Suggest two ways in which the percentage of profit forthe year to revenue (sales) could be improved. (©) Calculate the return on capital employed (ROE). ‘The calculation should be correct to twe decimal places.9 (g) Calculate the current ratio. a ‘The calculation should be correct io two dedi paces. CL. FE BQ2. A Deluna {(h) Calculate the quick (acid test) ratio. The calculation should be correct to two decimal places. —2esocSalion a (Explain why the cick ocd tet) ato Ie more eae then the cern rao an incor of liquiity. ‘Question 5{j) and (k) are on the next page. euciEs 2014 [Tom “@'@ Complete the table by placing a tick (v) in the correct column to show how each of the ‘ollowing transactions would affect the working capital of Zilani Limited. Increase | Decrease | No etfect leave of addeional shares. (a | [Wa ‘Cheque paid to credit supplier Repayment of long term foan Purchase of goods on credit Sale of unused non-current asset i surrent ‘Cheque paid for repairs to non- Atrader purchases @ supply of office paper on credit. How should this transaction be recorded?” eb | A Office equipment aogier 5 supplier ‘offce equipment D supplier Oo O ¢ etatoney paler ae 7) A trader buys @ motor vehicie, for use in his business, on credit from J. Sange. How is this recorded in the trader’ ledger? ‘account o be debited account bo cedied | ee A bank motor vehicle Oo B motor vehicle | bank (0 c motor vehicle | J. Sango L | . J. Sango motor vehicle a 2) Which entries are made in Xanthe's ledger to reogrd the payment by 3 customer of money owing to Xenthe? scoantinte dotted | _scxunta be cosias A oa credtor LW 5 an senitorky ef c = ah L] > debtorJan 1: The owner invested $10,000 cash into the business. Co Jan 5: Bought motor van for $5,000 on credit from K. Jan 8: Bought equipment for $3,000 cash. Jan 12: Sold motor van for $2,500 on credit to Ahmed. Jan 17: Withdrew $2,000 cash and deposited them at the bank. Jan 21: Paid K $5,000 by cheque. Jan 28: Ahmed paid us $2,500 cash. Coct ee pr Cash Sg a I te6.| | Jax! Cash ooo Jou! capil 40,000 | | |"Zap, Pr Cash Ale. se [an |: Ao,o0d | fash 10g fis fon? Barve, ef for®. 3,000 i Jon(F GM 12 s00 —_| nalarce ‘bank 70 Francis 100011 Mai Wang is a sole trader who keeps @ full set of double entry records including « three ‘column cash book. (On + July 2011 Mai Wang had $250 cash in hand and a bank overdraft of $4500. Mai Wang's transactions for the month of July 2011 included the following: July 2 Cash sales, $342, of which $300 was paid into the bank on that date C2 Received a cheque from Mark Fu in settlement of his account of $150 less 2% cash discount 15° withdrew $500 trom the bank for personal use 3 Pid Sally Tan $468 by cheque after deducting cash discount of 214% cash discount F 29 A.choque rived in June for $330 from Mulyani Lid was dishonoured and : retumed by the bank 30 Paid all the remaining cash into the bank except $100 REQUIRED {@) Enter the above transactions in Mai Wang's cash book on the page opposite Balance the cash book at 31 July and bring down the balances on 1 August 2011 to) ‘The cash book is printed on the next page. Draw up Allowed & Discount Received Accounts Discount Allowed Discount Received Account Account pre pe a yap eetbaa rely rt | 21 use le 37 zl | weitiws lez | £41 © 7H Ib SoS serra |s. | 99S] 27 cmos |? ‘OOS PA >eeet ed Ke Ramee [ee s s _k. Ss. 3 = 3 ywoa [usw | Fore seiea ea eo aa a 7008 ED Shuupa ry2 4 Stewart Hanson is @ sole trader who maintains a full set of accounting records including a ‘trree-colum cash book. {2} Explain why the cash book is both a book of prime (original) entry and also part of the double entry systom. (On 1 January 2012 Stewart Hanson had the following debit balances in his cash book: s Cash 100 Bank 1942 ‘Stewart Hanson's transactions forthe month of January 2012 included the following Jan3 Paid Paul Yim $398 by cheque in full settlement of his account of $410 Purchased office equipment, $1795, and paid by cheque \Withdrew $250, by chequo, to pay porsonal motor expenses ‘A cheque received in December 2011 for $115 from Sue West was ddishonoured and returned by the bank Cash sales, $1970 Paid all the remaining cash into the bank except $50 SB Boe REQUIRED (©) Enter the above transactions in Stewart Hanson's cash book on the page opposite. Balance the cash book at 31 January 2012 and bring down the balances on 1 February 2012. {10}syeea wa yeou sed vosueH wemagChapter 7 (b) DocumentsA cegit note B debit note © invoice D statement Which business document shows ail the transactions that have taken place with & customer during a month? Ol joumal? 2) Which documents received by a business are used to write up the purchases returns A credit notes B debit notes © statements D sales invoices In March, Wahid had the folowing transactions with Yussuf, a new customer, 4 March 16 March Goods invoiced to Yussu Credit note issued 1o Yussuf 23 March Goods invoiced to Yussut 28 March _ Cheque received from Yussut How much did Yusuf owe Wahid on 31 March? A $3000 A credit note B debit note © imvice: 14) Which document is used by @ supplier io notty a customer of goods supp retured and payments received in a ronth? D statement woich document wil Beth send io Peter io cone te er? A cost note B éebitnote Cc invsice D saiement ©) A flower shop receives an invoice for 200 plants at $5 each, less 20% trade giscount, gm ‘A. Field. The plants were bought qn credit and for resale, ‘Which entry records the transection in the lower shop's books? Beth sold goods on credit to Peter. It was later discovered that Peter had been Om ‘eccount io be debited | ——_agcount to be recited ‘ $ $ i A | purchases: 1900 | A Felt 100 |[7] B [A Fels 1000 | purcheces 1000 i ce | purchases 00 [A Fie 0 |[] , D [A Fee 800 | purchases 1 a 3) What's another name for @ copy of @ customer's account Inthe sales legger when itis ‘sent ip the customer? A credit note B debit note © invoke ° statementNEWTOWN: | DATE: 30 June 1995 } Dato Details DRt OR~ | BALANCEDY | t4unoes | Balance ba 1200 1240 I tess es| toeeonaizis | ‘as | no. A241 a | 1513 2idune9s | Cheque © | pot Olscount a 273 | { 30June95 | Invoice no. 2720 | S40 w [923 | Bridge Road NISISx(24 34) = IZOFSesty Ihe invoice shown balow and answer the questions which folow. SALES INVOICE KUOM! INTERNATIONAL HEAD OFFICE INVOICE NO: 25701 PALMEIAAS ESTATE E ‘QUINTAS VELHAS DESCRIPTION | QUANTITY PRIGES TOTALS UGHTING UNITS. 4 soaercH | 0 [750 WOODEN CASES 2 10.00 EACH 240.00 TOTAL Ol pho ‘Alled Factors Ale No: AF 3740 20-24 High Stost Fartown eee eee eee eee {2} Whats ne nai of he business sonding he ivlee? KoA Ttwliaealioned {©) Calculate ine missing emounts at (1) end (il) on the invoice and enter these In the oxas. Show your workings in the space below. 105‘The document below was sent by AZ Supplies to Billy Wong, 2 sole trader. Study this aa vestions which follow. AZ SUPPLIERS WHO}. ERS & IMPORTERS [Statement _] OF Accounr DATE DETAILS AMOUNT w = | weer a apo | a faq] s000 J ee re (@) Insert the missing words in boxes (I) and (ll) and the missing figures in boxes (ll!) end (Qy) en the document. 15} {8} Name the type of escount hewn on 25 ly (ash. dincunt.... 2 fo) (c)_ Calculate the peicentage rate cf ihe izcount. Show your wor $00... 12%. AM... Mab. gs inthe space below, 28f 1064 2 Pieter Burg is in business and buys goods from the General Supply Company. He received be blow noc tomtom GENERAL SUPPLY COMPANY ‘SALES INVOICE Pieter Burg 25 September 2005 Ganiy | Owrsinon ‘| Umeeree [8 o | Bol fastenings $0.40 1200.00 1000, Grommets $010 @ rom. oy Ter: 3% | (ey) ramet ap ioe (a) Onthe lines below, vate the missing words or figures ftom the invoice. 0 ai) iil) w) 32 Acces, ob ROD LD eons Casiw0iceeul i] i] 1) 1Pieter had previously bought goods for $2 500 from the General Supply Company on 28 August, and this amount wes unpaid at 31 August. Pieter paid this amount on 5 September. He did not pay the September invoice until 30 October. ‘An extract from the payments side of Pieter's cash book is shown below. Date Detaks Discount Bank received $ s | ‘September | General Supply Co | | 0 w | | 30 October | General Supply Co iy i) (©) Onithe nes below. wrke the amounts missing from the cash book. °. \ 0? Dale Se. . ao % 1" @ Qo 4-LS " ai) OQ or ves "1 (€) From the information in (a) and (b), show the entries in the General Supply Company/s ‘account in Piotor Burg's purchases ledger for the months of Septornber an October 2005, General Supply Company account py Cy S300... LOWA MIS |... Sep hokore b/al 1S $n AD LSS PUA...) 3.02 Sepdo, balla 1302... fp i : cH Leuk. [202 "1.3094. (a) Give four items of information you would expect to find on a statement of account. (On + August 2007 Zak made a sale on credit to Sasha of 170 pencils at $0.85 each. REQUIRED (b) Complete the invoice below for the sale to Sasha using the information given above. Zak Trading Sasha | vate [AhgetZor4 Quantty Price ‘Amount s $ AFo 2% Luss| Terms: 2.5% or settlement within 14 days 15)(g) Name the following documents. Document totmcomguicadcannn | olatement ‘a document sent to a customer as a ‘demand for payment teyaee ‘a document sont by a customer detailing the abowance due on retumed goods Deb Note 3) Total: 23}Chapter 8 Daybooks and Documents9 » ‘Tho total of he sales returns joumal is posted fo the sales returns account. Where wil the double entry appear? A bank account B creqitors' accounts © ei ecert Frade. ress D_seies account Which business documents are used fo write up the sales retuns joumal? A. credit notes issued to customers B credit notes received trom suppliers © eyoices issued to cystgmers D__ invoices received trom suppliers Paul retums goods previously purchased qn credit rom Peter. Where wil this transectign be regarded in Peter's accqunting records? ook of prime (orignal) entry ‘nominal (general) ledger | purchases retums ounal | cxedt purchases retung account | B | purchases retums umat | gedit purchases retums eccount c ‘sales returns jours! credit sales retyms account | 1M J Bo a D | sales retyms journal 4 In which book of prime (origina entry are inveloes tesued by a trader recorded”? A purchases journal B purchases retums journal © seies journal D sales retuns journal ONCE Wich 800k of prime (original) entry is written up from copies of invoices issued? ‘A purchases journal B purchases ledger © sales journal D sales ledger i IS1 2 ‘Sahira Allis a trader. Her ledgor is divided into a sales ledger, a purchases ledger and a 1 (general) ledger. REQUIRED (2) State two advantages of dividing the ledger into these three sections 1 Lassen bornalerem ce ter conteshistsibenbed am BS hyped Nereus cue. Kopel age Lhd ann (©) Name one account which would appear in the nominal (general) ledger. Lanes Toventaty.. On 1 October 2044 Sahira Ali's trade payables included the following. ail $ Waheed Khan 300 igbal Wholesalers 650 ‘Sahira Al's transactions for October 2014 included the following. October 5 Purchased goods on credit from Iqbal Wholesalers, $280 13 Purchased goods on credit from Waheed Khan, list price $420, less ‘wade discount 16 Retumed goods, list price $210, to Waheed Khan 24 Sent @ cheque for $380 fo Waheed Khan in full settlement of the ‘owing on 1 October 31 Iqbal Wholesalers charged $6 on the overdue accountREQUIRED {{) Write up the following accounts in the ledger of Sahira Ali for the month of October 2014. ‘Balance the accounts and bring Gown the balances on 1 November 2014. ‘Sahira Ali Weheed Kran account Date Detaits $s atl. GEL) raDemsebld |.aa0 Fiadkane..4 (a) Site how the double entry i completed on 31 August 2014 fr the Wem recorded in te ledger accounts column of the patty cash aah Foca Tifa Peter Pickard’ transactions for August 2014 included the folowing. ‘Aug 5 Sold goods on credit to S Bower, list price $1480, loss 20% trade discount 13 Sold goods on credit to C Brooks, ist price $1540, less 15% trade discount 18S Bower retumed goods, lst price $160, purchased on 5 August REQUIRED (h) Make the necessary entries in Peter Pickard's sales jounal, sales retums journal, sales ledger and nominal (general) ledger for the month of August 2014. Itis not necessary to balance the accounts. Peter Pickard ‘Salas Joumal Date Details a5 Sales Retums Journal Date Details s s sott Aug Di Bae 160... Lens. Uads..discouk| 3.2. Ie sy panel foseDroncbnal} nn (23 Sales Ledger anor aed Batty Details $ Date Detaits $s 2.| Solbo...... hy B4.S3} Gora Date Details S| Date Detaiis s Nominal (General) Ledger ‘Sales account SeerSales Returns account s She hy \,1 Khalid Mirza is a trader. On | October 2013 his trade payables included Fatima Waheed, who was owed S450, and Sajid Manzoor who was owed $280. ‘Khalid Miza's transactions for the month of October 2013 inaluded the following. Octcber 4 Bought goods on cresit irom Fatima Waheed, list price $320, less 28% trade Siscount 12. Paid the amount owing to Sajid Marzoor by cheque less 21:% cash discount "4 Retumed goods to Fatima Waheed. These were purchased on 4 October, lst price $80 21 Bought goods on credit from Sajid Manzoor, $360 26 Received an additional invoice from Sajid Manzoor, $90, to correct an Lndercharge for goods bought on 21 October ‘1 Received notification from Fatima Waheed thet $9 interest would be charged 45 the September account was overdue (2) Name the source document which Khalid Mirza woul! use to record the foowing trensactions. ‘Transaction October 4 Bought goods on credit from Fatima Waheed October 12 Paid the amount owing to Sajid Manzoor by cheque (©) Name the book of prime (original) entry in which Khalid Mirza would record the ‘ollowing transactions, — sr ‘Transaction Book of Original Entry October 14 Retumed goods to Fetima | Waheed October 31 Received notification from Fatima Wahoos that interest | would be charged eucies209 ouszzsony3 (0 it up te acount of Ftina Waheed and Sf Manzo a8 they sould appear 6 | ne 5 ledger fo the month of October 2043. = Fatima Waheed accountOAS! Ath, Lomo, "Lad ides (roca, i a 2 Fatal A heal sit Joecauise. 2A Alu auth dady i overhang Detween a credit note and a debit note 2dbbed ra PH e Sap plata 2h uly ouseevonnsChapter 9 General Journal1 Rentis paid to J. Perigo In cash. How is this recorded? eccount to be debited acequnt to be credited A cash rent 8 J. Perigo rent e rent cash > rent 4. Perigo O 8 2), Peter solé goods on cred ty Ann in 2008. In October 2010 Peter wrote off he amount ‘owed by Ann as a bad debt. “What entries must Peter make in his ledger to write off the bad debt? aczourtto be debited | accauntiobe wed rs Ann bed debts: | - ‘ann ales 3 ves debts ‘on D se we LI m 3) _Attader commenced business with a git of machinery from his father. ‘What will be the acogunting entry’? ‘oon eet ale bank wachineny B capital machinery‘ c machinery bork > machinery capil [Yn 130,2 Loretti started 2 business on + April 2008. On that day he introduced the folowing into the business: ‘Stock $12 000, office furniture $1500, and ash $2500, of which $200 was kept on hand for petty cash and the balance, $2300, was paid into a business bank account. On the same day his cousin Hassan paid $5000 into the business bank account as a loan to the business. REQUIRED (2) Show the opening joumal entry to record these transactions. A narrative is not required. Loretti decided to keep his petty cash book on the imprest system. in the ‘April 2006 he paid the following expenses from his cash 3Aprl Stationery BAprh Refreshments 13 Apri == Cleaning 20Apri Traveling (On 4 May he withdrew the appropriate amount from the bank fo restore the imprest amount. s 35 40 50 20 (b) Write up Lorett’s petty cash book, on the page opposite, for the month of April and ‘show the amount transferred from the bank on 1 May.‘sye10q ewa Gynvest | F027] anf [feos | Bet | swoa | swa O08 Use Aneel ~ M8107ne ASGels scliobi Win = Capito m ‘Samir started a business on 1 January. The following transactions took place. 1 ‘Samir pald $10 000 of his own money into the business bank account. 2 Hetransferred his own vehicle to the business at a valuation of $6500. 3. He bought goods for resale, $2000, on credit from Zed. 4 He paid rent, $3000, by cheque. REQUIRED (©) Complete the following table showing how these transactions were recorded in Sami’s ‘books of account. The frst has been completed as an example. 1 2 [Motor vate 3_| PuthaserA/c| 2,020] Zod A/C [2,000 4 [Rok AIC [3.0w] Boawalc [3,0@