Accounts - Diwali HW

2
1 Dev owns a business selling furniture.
The following transactions took place during August 2020.
Transaction Date Details $

1 August 9 Sold goods on credit to Petra 675
2 14 Petra returned damaged goods to Dev 120
3 23 Banked cash sales 412
4 29 Petra settled her outstanding balance at 1 August by
credit transfer after taking a cash discount of 5%
On 1 August 2020, the balance on credit customer Petra’s sales ledger account was $940 debit.
REQUIRED
(a) Complete the table to name each business document and book of prime entry for the following
transactions in Dev’s accounting records.
Transaction Business document Book of prime entry

2
3
4
[6]
(b) Prepare the account of Petra for August 2020 as it would appear in Dev’s sales ledger.
Balance the account and bring down the balance on 1 September 2020.
Dev
Petra account
Date Date
2020 Details $ 2020 Details $
......... ...................................... ........... ......... ...................................... ...........
......... ...................................... ........... ......... ...................................... ...........
......... ...................................... ........... ......... ...................................... ...........
......... ...................................... ........... ......... ...................................... ...........
......... ...................................... ........... ......... ...................................... ...........
......... ...................................... ........... ......... ...................................... ...........
......... ...................................... ........... ......... ...................................... ...........
[6]
© UCLES 2020 0452/22/O/N/20

3
(c) Identify the section of Dev’s statement of financial position at 31 August 2020 in which the
balance on Petra’s account would appear.
.............................................................................................................................................. [1]
Dev allows his credit customers a cash discount of 5% for prompt payment. He is considering
reducing this to 2%.
REQUIRED
(d) State one advantage and one disadvantage to Dev of this proposal.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
.............................................................................................................................................. [2]
Dev is considering turning his business into a limited company.
REQUIRED
(e) Advise Dev whether or not he should form a limited company. Justify your answer with two
advantages and two disadvantages of forming a limited company.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
.............................................................................................................................................. [5]
[Total: 20]
© UCLES 2020 0452/22/O/N/20 [Turn over

4
2 Diane is a trader. She buys goods on credit from Udomo. On 1 October 2016 Diane owed Udomo
$720.
Several transactions took place between the traders in October 2016.
REQUIRED
(a) Complete the following table. Name the book of prime (original) entry in which each document
would be recorded by each trader.
If the document is not entered in a book of prime (original) entry, write “No entry”.
Date Document Book of prime entry Book of prime entry

used by used by
Diane Udomo
Oct
8 Invoice $560 ................................. .................................
12 Debit note $115 ................................. .................................
16 Credit note $100 ................................. .................................
24 Cheque $720 ................................. .................................
31 Statement of account $460 ................................. .................................
[10]
(b) Name the person who issued each of the following documents. In each case suggest one
reason for the issue of that document.
(i) Debit note 12 October
Diane
Name of person issuing the document ...............................................................................
Some goods were damaged so she wants to

Reason for the issue of the document................................................................................
return them to Udomo
...........................................................................................................................................
...................................................................................................................................... [2]
(ii) Credit note 16 October
Udomo
Udomo acccepts the request and is ready to

replace the damaged goods
...........................................................................................................................................
.......................................................................................................................................[2]
© UCLES 2016 0452/21/O/N/16

5
(iii) Statement of account 31 October
Udomo
To summarise the transactions with Diane for

the month
...........................................................................................................................................
...................................................................................................................................... [2]
(c) Prepare the account of Diane as it would appear in the ledger of Udomo for October 2016.
Balance the account and bring down the balance on 1 November 2016.
Udomo
Diane account
Date Details $ Date Details $

2016 2016
Oct 1 Balance b/d 720 ……… …………...………..... ………
........... ............................... ........... ........... …………...………..... ...........
........... ............................... ........... ........... …………...………..... ...........
........... ............................... ........... ........... …………...………..... ...........
........... ............................... ........... ........... …………...………..... ...........
........... ............................... ........... ........... …………...………..... ...........
........... ............................... ........... ........... …………...………..... ...........
[4]
[Total: 20]

2
1 Thato opened a wholesale shoe business on 1 August 2018. He buys and sells on credit terms.
REQUIRED
(a) (i) State the purpose of a debit note received by Thato from Abebe, a credit customer.
...........................................................................................................................................
Some goods were damaged so Abebe wants to return them to Thato
...................................................................................................................................... [1]
(ii) Complete the following table by placing a tick () to indicate how Thato would record this
debit note in the account of Abebe.
credit Abebe account debit Abebe account no entry
[1]
(b) (i) State the purpose of a statement of account issued by Thato to Abebe.
...........................................................................................................................................
To summarise the transactions with Abebe for the month
...................................................................................................................................... [1]
(ii) State why Thato did not record this in his ledger.
...........................................................................................................................................
Statement of accounts are not recorded in ledger
...................................................................................................................................... [1]
© UCLES 2018 0452/21/O/N/18

3
Thato received the following invoice from Nyack, a credit supplier.
Invoice
Nyack
Low Road
Anytown
Thato
Lot 14 Industrial Estate
Somecity 4 August 2018
$ per unit $
100 pairs Men’s shoes assorted sizes and styles 40 4000
50 pairs Ladies’ shoes assorted sizes and styles 45 2250
6250
Less 20% trade discount 1250
5000
Terms: 2½% discount for payment in 30 days
REQUIRED
(c) (i) State one reason why Nyack allowed Thato trade discount.
To......................................................................................................................................
encourage Thato for bulking buying, Nyack allowed trade discount to Thato [1]
(ii) State one reason why Nyack offered Thato cash discount.
To encourage Thato to pay the amount of money as soon as possible, Nyack [1]
......................................................................................................................................
allowed cash discount to Thato
(iii) Calculate the amount of the cheque Thato gave to Nyack on 31 August 2018 to settle the
account.
...........................................................................................................................................
$4875
...........................................................................................................................................
...................................................................................................................................... [1]
(iv) Name the ledger in which Thato would maintain Nyack’s account.
......................................................................................................................................
Purchase ledger [1]

4
In addition to the invoice received from Nyack on 4 August, Thato received the following
documents.
August 9 Invoice received from Gaby, a new supplier for goods, $2600 less 20% trade discount.
13 Credit note received from Gaby for goods returned, list price $100.
On 30 August Thato paid Gaby the amount owing by cheque less 2% cash discount.
REQUIRED
(d) Prepare Thato’s purchases journal and purchases returns journal for the month of August
2018.
Total each journal and indicate the ledger account to which the total would be transferred.
Thato
Purchases journal
Date Details $ $
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
© UCLES 2018 0452/21/O/N/18

5
Purchases returns journal
Date Details $ $
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ………………
……… ………………………………………… ……………… ……………….
……… ………………………………………… ……………… ……………….
[5]
(e) Prepare the following accounts in Thato’s ledger for the month of August 2018. It is not
necessary to balance any of the accounts.
Thato
Purchases account
……… …………………… ……… ……… …………………… ………
……… …………………… ……… ……… …………………… ………
Purchases returns account
……… …………………… ……… ……… …………………… ………
……… …………………… ……… ……… …………………… ………
Gaby account
……… …………………… ……… ……… …………………… ………
……… …………………… ……… ……… …………………… ………
……… …………………… ……… ……… …………………… ………
……… …………………… ……… ……… …………………… ………
[6]

6
2 (a) Explain the meaning of the following terms.
1 asset An asset represents anything owed by or owing

to the business
2 liability A liability represents anything owed by the business
3 owner’s capital Owner's capital is the total resources provided

by the owner and represents what the [3]
business owes the owners
(b) Complete the table below using a tick () to indicate if each item is an asset or a liability. The
first has been completed as an example.
Asset Liability
Inventory
Motor vehicle
Creditor
Debtor
Bank loan
Cash
[5]
Archie is a trader with a year end of 31 December. During the year he made the following
transactions.
1 On 1 January paid $10 000 of his own money into the business bank account.
2 On 1 January bought plant and equipment, $6000, paying half by cheque and paying
half with a loan from ABC Finance.
3 On 30 June took $500 in cash as drawings.
4 On 31 December paid by bank transfer $210 interest on the loan from ABC Finance.
5 On 31 December paid $1000 by cheque as the first repayment of the loan.
6 On 31 December provided $600 depreciation on the plant and equipment.
© UCLES 2014 0452/12/M/J/14

7
REQUIRED
(c) Complete the table below, showing the double entry recording each of these transactions.
The first has been completed as an example.
Debit entry Credit entry

$ $
1 Bank account 10 000 Capital account 10 000
2 Plant and equipment Bank account 3000

6000 Loan from ABC Finance
account account 3000
3 Drawings account 500
500 Cash account
4 Interest on the loan from ABC 210 Bank account 210
Finance account
5 First repayment of the 1000 Bank account 1 000
loan account
6
[11]
(d) Calculate the annual rate of interest Archie was paying on the loan.
$210
[2]
(e) Explain how a bank overdraft can arise.
A bank overdraft occurs when more has been

paid out of the bank than was put into the bank
account.
[2]
(f) The cheque issued by Archie on 31 December did not appear on the bank statement until
6 January. State the term given to this cheque in Archie’s bank reconciliation statement on
31 December.
Dishonored cheque [1]
[Total: 24]
© UCLES 2014 0452/12/M/J/14 [Turn over

8
3 (a) (i) Name one ledger account which might be found in the nominal (general) ledger.
Rent receivable account ledger [1]
(ii) Name one other type of ledger which a business might maintain.
Sales account ledger [1]
(iii) Explain why dividing the ledger into sections makes it easier to use.
[2]
(b) Complete the table below to indicate in which financial statement each item would appear.
State to which type of business each item relates.
The first has been completed as an example.
Financial statement Type of organisation

Ordinary share capital Statement of financial Limited company
position
Accumulated fund
Interest on capital
Ordinary share dividends paid
Debenture interest
[8]
(c) State two differences between debentures and ordinary shares.
[4]
© UCLES 2014 0452/12/M/J/14

9
(d) Explain why a limited company might decide not to distribute all of its profit for the year in the
form of a dividend.
[2]
[Total: 18]

10
4 (a) Matsumi was inexperienced in book-keeping and drew up a trial balance which failed to
balance. Name the account she could have opened to enable the trial balance to balance.
Suspense account [1]
The trial balance which she drew up, and which contained errors, was as follows.
Matsumi
Trial Balance at 30 April 2014
Dr Cr
$ $
Bank overdraft 2 320
Cash 100
Fixtures and fittings at cost 6 800
Provision for depreciation at 1 May 2013 1 360
Fees receivable 28 105
Interest payable 200
Rent payable 6 000
Advertising 430
Wages 8 005
Loan account 3 000
Capital at 1 May 2013 2 950
Drawings _____ 16 200
39 095 36 375
© UCLES 2014 0452/12/M/J/14

11
REQUIRED
(b) Prepare a corrected trial balance at 30 April 2014.
Matsumi
Trial Balance at 30 April 2014
Dr Cr
$ $
Bank overdraft ……….. 2320
………..
Cash 100
……….. ………..
Fixtures and fittings at cost 6800
……….. ………..
Provision for depreciation at 1 May 2013 ……….. 1360
………..
Fees receivable ……….. 28105
………..
Interest payable 200
……….. ………..
Rent payable 6000
……….. ………..
Advertising 430
……….. ………..
Wages 8005
……….. ………..
Loan account ……….. 3000
………..
Capital at 1 May 2013 ……….. 2950
………..
Drawings _____
16200 _____
37735
_____ 37735
_____
[6]
(c) Explain why the capital account balance in the trial balance is that of 1 May 2013.
[2]
(d) Suggest the line of business in which Matsumi may be working.
[1]

2
1 Shilpa is a trader. The following transactions took place in January 2021.
January 2 Paid rent, $450, by direct debit
3 Bought goods on credit from Dilip, list price $120, subject to a trade discount of
25%
6 Sold goods on credit to Kabir, list price $200, subject to a trade discount of 20%
9 Sold surplus office fittings for $110 which was paid by credit transfer
10 Returned goods to Dilip, list price $20. These goods had been purchased on
3 January
11 Paid $50 to Dilip in cash
15 Cash sales, $85, were immediately paid into the bank
17 Paid office expenses, $30, by credit transfer
20 Sold goods on credit to Pari, $150
21 Kabir paid by cheque for the goods he purchased on 6 January, after deducting
cash discount of 7½%
24 Pari paid $141, by cheque, in full settlement of the purchases made on 20 January
26 Sold goods on credit to Yash, $62, offering him a discount of 5% if he paid within
21 days
REQUIRED
(a) Prepare Shilpa’s sales journal for January 2021.

Total the journal and indicate the ledger account to which the total would be posted.
Shilpa
Sales journal
Date Details $ $
................... .......................................................................... ................... ...................
................... .......................................................................... ................... ...................
................... .......................................................................... ................... ...................
................... .......................................................................... ................... ...................
................... .......................................................................... ................... ...................
................... .......................................................................... ................... ...................
[4]
(b) Complete Shilpa’s cash book on the page opposite.

Balance the cash book and bring down the balances on 1 February 2021.
© UCLES 2021 0452/22/F/M/21
Shilpa
Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank
© UCLES 2021
allowed received
2021 $ $ $ 2021 $ $ $
Jan 1 Balance b/d ................ 200 814 Jan 2

........... Rent
....................................... ................ ................ 450
................
9 Surplus office fittings 110 11 Dilip 50
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
15
........... Sales
....................................... ................ ................ 85
................ 17
........... Office expenses
....................................... ................ ................ 30
................
21
........... Kabir
....................................... 12
................ ................ 148
................ 31
........... Balance c/d
....................................... ................ 150
................ 818
................
........... Pari
24 ....................................... 9
................ ................ 141
................ ........... ....................................... ................ ................ ................
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
........... ....................................... 21
................ 200
................ 1298
................ 200 1298
........... ....................................... ................ ................ ................
3
0452/22/F/M/21
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................
[11]
[Turn over
4
(c) Prepare the ledger account of Dilip for January 2021. Balance the account and bring down
the balance on 1 February 2021.
There was no balance on Dilip’s account on 1 January 2021.
Shilpa
Dilip account
……….. ………......................... ………... ……….. ………......................... ………..
……….. ………......................... ………... ……….. ………......................... ………..
……….. ………......................... ………... ……….. ………......................... ………..
……….. ………......................... ………... ……….. ………......................... ………..
……….. ………......................... ………... ……….. ………......................... ………..
……….. ………......................... ………... ……….. ………......................... ………..
……….. ………......................... ………... ……….. ………......................... ………..
[4]
(d) Complete the table by placing a tick (3) to indicate which document Dilip would send to
Shilpa for the return of goods on 10 January.
Debit note
Credit note
[1]
[Total: 20]
© UCLES 2021 0452/22/F/M/21

4
2 Emilie has a shop and sells goods for cash and on credit. She keeps the cash book herself For
but her accountant writes up her ledger each month. Examiner's
Use
Emilie puts her cash receipts in a till and enters them into her three-column cash book each
week. She offers a cash discount of 3 % to her debtors for payment within 15 days.
She buys stock in bulk from a wholesaler for cash and receives trade discount of 5 % for
orders in excess of $1000.
She pays wages each week in cash.
On 1 March 2008 Emilie’s cash book showed cash in hand of $1700 and cash at bank of
$3000.
Emilie had the following transactions in one week in March 2008.
$
March 3 Cheque received from Jules for goods sold on 20 February 194
4 Sold goods on credit to Henri 200
5 Paid cash to Andre for goods purchased 1200
6 Cheque received from Michel for goods sold on 29 January 85
7 Cash sales for the week 1850
7 Wages paid for the week 330
REQUIRED
(a) Make the necessary entries in Emilie’s cash book to record the above transactions for
the week ended 7 March 2008.
© UCLES 2008 0452/02/M/J/08

www.theallpapers.com
Emilie – Cash Book March 2008
Date Details Disc. Cash Bank Date Details Disc. Cash Bank
© UCLES 2008
$ $ $ $ $ $
2008 2008
March 1 Balance b/d 1700 3000 March 5 Andre 1200
3 Jules 194 7 Wages 330
6 Michel 85 Balance c/d 2020 3279

7
7 Sales 1850
3550 3279 3550 3279
5
0452/02/M/J/08
2008
March 8 Balance b/d 2020 3279
[11]
[Turn over
For
Use
Examiner's
2
1 Mai Wang is a sole trader who keeps a full set of double entry records including a three For
column cash book. Examiner's
Use
On 1 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
9 Received a cheque from Mark Fu in settlement of his account of $150 less

2% cash discount
15 Withdrew $500 from the bank for personal use
23 Paid Sally Tan $468 by cheque after deducting cash discount of 2½% cash
discount
29 A cheque received in June for $330 from Mulyani Ltd was dishonoured and
returned by the bank
30 Paid all the remaining cash into the bank except $100
REQUIRED
(a) 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.
[10]
The cash book is printed on the next page.
© UCLES 2011 0452/23/O/N/11

Mai Wang
© UCLES 2011
Cash Book
Discount Discount
Date Details Cash Bank Date Details Cash Bank
Allowed Received
$ $ $ $ $ $
2011 2011
Balance b/d 250 Balance b/d 4500
July 1 July 1
Sales 42 300 15 Drawings 500
2
9 Mark Fu 3 147 23 Sally Tan 12 468
Mulyani Ltd
30 Cash (c) 192 29 330
(dishonoured)
30 Bank (c)
3
192
0452/23/O/N/11
31 Balance c/d 100 5159
3 292 5798 12 292 5798
2011 100 5159

Balance b/d
Aug 1
[Turn over
For
Use
Examiner's
4
Mai Wang’s bank statement showed a debit balance of $4873 on 31 July 2011. For
Examiner's
Use
REQUIRED
(b) State the bank balance that should be shown in the balance sheet of Mai Wang at
31 July 2011. State whether it is an asset or a liability.
[2]
(c) Explain the meaning of each of the following terms.
(i) Bank reconciliation statement
[2]
(ii) Cheques not yet credited
[2]
(iii) Cheques not yet presented.
[2]
[Total: 18]
© UCLES 2011 0452/23/O/N/11

2
1 Stewart Hanson is a sole trader who maintains a full set of accounting records including a For
three-column cash book. Examiner's
Use
REQUIRED
(a) Explain why the cash book is both a book of prime (original) entry and also part of the
double entry system.
[2]
On 1 January 2012 Stewart Hanson had the following debit balances in his cash book:
$
Cash 100
Bank 1942
Stewart Hanson’s transactions for the month of January 2012 included the following:
Jan 3 Paid Paul Yim $398 by cheque in full settlement of his account of $410
8 Purchased office equipment, $1795, and paid by cheque
13 Withdrew $250, by cheque, to pay personal motor expenses
20 A cheque received in December 2011 for $115 from Sue West was
dishonoured and returned by the bank
28 Cash sales, $1970
30 Paid all the remaining cash into the bank except $50
REQUIRED
(b) 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]
© UCLES 2012 0452/21/M/J/12

Stewart Hanson
Cash Book
© UCLES 2012
allowed received
$ $ $ $ $ $
2012 2012
Jan 1 1942 Jan 3 Paul Yim 12
Balance b/d 100 398
28 Sales 1970 8 Office equipment 1795
30 Cash 2020 13 Drawings 250

Sue West
20 (dishonoured) 115
30 Bank 2020
3
50
0452/21/M/J/12
31 Balance c/d 1404
2070 3962 2070 3962

12
2012
Balance b/d 50 1404
Feb 1
[Turn over
For
Use
Examiner's
4
(c) Stewart Hanson’s bank statement for January 2012 showed that his bank account was For
overdrawn for most of the month. Examiner's
Use
(i) Explain why this overdraft occurred.
[2]
(ii) Explain how the overdraft could have been prevented.
[2]
(d) Explain how the business entity principle has been applied in the treatment of the
personal motor expenses.
[2]
(e) On 20 March 2012 Stewart Hanson decided to write off $115 owed by Sue West as a
bad debt.
Prepare the journal entry Stewart Hanson would make to record this. A narrative is
required.
Journal
Debit Credit
$ $
[3]
© UCLES 2012 0452/21/M/J/12

5
(f) On 14 May 2012 Stewart Hanson received a cheque for $115 from Sue West.
For
Name the ledger accounts in which Stewart Hanson would record this transaction. Examiner's
Use
Account debited Account credited
[2]
(g) Suggest two ways in which Stewart Hanson could reduce the risk of bad debts in the
future.
(i)
(ii)
[2]
[Total: 25]

2
1 Abdul Anwar is a sole trader who keeps a full set of double entry records including a three For
column cash book. Examiner's
Use
The balances on his books on 1 May 2009 included the following:
$
Cash 100
Bank 490 credit
Debtor – Sameen Atif 150
Creditor – Mohsin Ali 320
Abdul’s transactions for the month of May 2009 included the following:
May 6 Cash sales, $280, of which $200 was paid into the bank on that date.
13 Received a cheque from Sameen Atif in settlement of her account.
18 Paid a cheque to Mohsin Ali in settlement of his account after deducting

cash discount of 2 ½ %.
24 Sameen Atif’s cheque was dishonoured and was returned by the bank.
30 Paid all the remaining cash into the bank except $50.
REQUIRED
(a) Enter the above transactions in Abdul Anwar’s cash book on the page opposite.
Balance the cash book at 31 May and bring down the balances on 1 June 2009.
[8]
© UCLES 2009 0452/03/O/N/09

Abdul Anwar
© UCLES 2009
Cash Book
Discount Discount
Allowed Received
$ $ $ $ $ $
2009 2009
Balance b/d 100 Balance c/d 490
May 1 May 1
Sameen Atif
6 Sales 80 200 24 150
(dishonoured)
13 Samin Atif 150 30 Bank (c) 130
30 Cash (c) 130 31 Balance c/d 50
31 Balance c/d 160

3
0452/03/O/N/09
180 640 180 640
2009 2009
Balance b/d 50 Balance b/d 160
June 1 June 1
[Turn over
For
Use
Examiner's
2
1 Annabel is a wholesaler. She maintains a three column cash book.
The following transactions took place in April 2019.
April 8 Received a cheque from Ellie in full settlement of her account of $450 after deducting
2% cash discount
15 Paid Ed $468 by bank transfer to settle his account after deducting 2 12 % cash discount
21 Received a cheque from Caleb, $310
25 Withdrew cash from bank for business use, $200
27 Paid operating expenses in cash, $296
Annabel received her bank statement for April 2019.
The following items appeared on her bank statement but had not been recorded in her accounting
records.
1 The cheque received from Caleb on 21 April had been dishonoured.
2 Carly, a credit customer, had paid $294 by credit transfer to settle her account of $300.
3 Bank charges for the month amounted to $82.
REQUIRED
(a) Complete Annabel’s cash book on the page opposite.

Balance the cash book and bring down the balances on 1 May 2019. [13]
© UCLES 2019 0452/22/M/J/19

Annabel
Cash Book
© UCLES 2019
allowed received
2019 $ $ $ 2019 $ $ $
April 1 Balance b/d ............... 150 ............... April 1 Balance b/d ............... ............... 988
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
3
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
0452/22/M/J/19
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
........... ......................................... ............... ............... ............... ........... ......................................... ............... ............... ...............
[Turn over
4
Annabel purchases goods on credit from Ed. They exchanged various business documents during
April 2019.
REQUIRED
(b) Name the person who issued each of the following documents.
document person issuing the document
invoice Ed
................................................................
debit note Annabel

................................................................
credit note Ed
................................................................
statement of account ................................................................

Ed
[4]
(c) Explain the difference between a debit note and a credit note.
A debit note is a document issued by a purchaser of goods on

...................................................................................................................................................
credit to request a reduction in the invoice received while a

...................................................................................................................................................
credit note is a document issued by a seller of goods on credit

...................................................................................................................................................
to notify of a reduction in an invoice previously issued.

...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...............................................................................................................................................[4]
(d) State one purpose of issuing a statement of account.
A statement of account is issued to summarise the

...................................................................................................................................................
transactions for the month.

...............................................................................................................................................[1]
[Total: 22]
© UCLES 2019 0452/22/M/J/19

2
1 Paul Chew is a trader. He made the following entries in his cash book in September 2015.
Paul Chew
Cash Book for September 2015
Discount Cash Bank Discount Cash Bank

$ $ $ $ $ $
Sept Sept
1 Balances b/d 30 117 4 W Law
11 Bank 70 (dishonoured
27 Sales 20 560 cheque) 90
30 Yeung & Co 3 267 11 Cash 70
19 General
expenses 80
24 K Tan 13 507
REQUIRED
(a) (i) Suggest one reason why the cheque on 4 September was dishonoured.
W Law did not have enough bank balance to pay $90

[1]
(ii) Explain the entry on 11 September.
$70 is withdrawn from the bank and hence bank is debited

with amount $70 in the cash column and cash is credited
with amount $70 in the bank column [2]
(iii) Explain the entry on 27 September.
Cash sales, $580, of which $560 was paid into the

bank on that date.
[1]
(iv) Calculate the percentage of the discount on 24 September.
2.5%
[1]
© UCLES 2015 0452/23/O/N/15

3
(v) State how the total of the discount column on the debit side of the cash book would be
entered in the ledger on 30 September.
[2]
(vi) Calculate the bank balance on 30 September.
944
[1]
On 30 September 2015 Paul Chew’s bank statement showed an overdrawn balance of $43.
On comparing the bank statement and the cash book it was found that the bank had not recorded
the transactions shown in the cash book on the following dates:
24 September
27 September
30 September
REQUIRED
(b) Prepare a bank reconciliation statement at 30 September 2015.
Paul Chew
Bank Reconciliation Statement at 30 September 2015
[5]

4
Paul Chew sells goods on credit terms to Kim Chan.
REQUIRED
(c) Complete the table to name the business document and the books of prime (original) entry
for each of the following transactions.
If the document is not recorded in a book of prime (original) entry write “No entry”.
The first transaction has been completed as an example.
Paul Chew’s book Kim Chan’s book

Document of prime (original) of prime (original)
entry entry
Paul Chew received

Cheque Cash book Cash book
payment from Kim Chan
Paul Chew sold goods on

credit to Kim Chan
Kim Chan notified Paul

Chew of an overcharge
Paul Chew notified Kim

Chan that he agreed the
overcharge
Paul Chew sent Kim Chan

a summary of the month’s
transactions
[12]
[Total: 25]
© UCLES 2015 0452/23/O/N/15

2
1 Paul Katanga is a trader. The balances on his books on 1 April 2014 included the following.
$
Cash 75
Bank overdraft 2190
Moloi Stores (credit customer) 50
T Nekundi (credit supplier) 320
Paul Katanga’s transactions during April 2014 included the following.
April 2 Sold goods on credit to Moloi Stores, $34
5 Paid $620 by cheque. This included payment for new office equipment, $580, and
repairs to old office equipment, $40
8 Received a cheque from Moloi Stores in settlement of their account
13 Purchased goods on credit from T Nekundi, list price $260 subject to a trade
discount of 20%
17 Returned goods (purchased on 13 April) to T Nekundi, list price $80
21 The bank dishonoured the cheque received from Moloi Stores on 8 April
24 Paid a cheque to T Nekundi for the balance due on 1 April, less 2½% cash discount
28 Cash sales, $2500
29 Cash withdrawn for personal use, $300
30 Wrote off the amount owing by Moloi Stores
Paid all cash into bank except $60
REQUIRED
(a) Prepare Paul Katanga’s cash book on the page opposite. Balance the cash book and
bring down the balances on 1 May 2014.
[12]
The cash book is printed on the next page
© UCLES 2014 0452/22/M/J/14

Done in excel
Paul Katanga
Cash Book
Discount Discount
allowed received
© UCLES 2014
$ $ $ $ $ $
3
0452/22/M/J/14
[Turn over
4
(b) Prepare the accounts of Moloi Stores and T Nekundi for April 2014. Balance the accounts
where necessary and bring down the balances on 1 May 2014.
Paul Katanga
Moloi Stores account
[4]
Paul Katanga
T Nekundi account
[4]
© UCLES 2014 0452/22/M/J/14

5
(c) Paul Katanga records credit sales when goods are invoiced and sent to the customer
rather than when the customer pays. Name the accounting principle he is applying.
[1]
(d) Paul Katanga maintains his accounting records on the basis that the business is going to
continue trading. Name the accounting principle he is applying.
[1]
[Total: 22]

14
Sam’s book-keeper started to maintain a petty cash book on 1 April 2019. On that date $150 was
placed in the petty cash box. This was to be the monthly imprest which was to be restored on the
first day of each month.
At the end of April 2019 Sam discovered that only a few entries had been made in the petty cash
book for the month.
The following information about the petty cash transactions for April 2019 is available.
2019 $
April 11 Received refund from cleaner for overpayment in March 5
18 Paid Kelly, a credit supplier 35
21 Bought printer paper 23
30 Paid cleaner 56
REQUIRED
(e) Complete the entries for the transactions on 3 April and 6 April in the petty cash book on the
page opposite.
Enter the transactions for 11 April to 30 April in the petty cash book.
Balance the petty cash book on 30 April and bring down the balance on 1 May 2019.
Show the restoration of the imprest on 1 May 2019. [10]
[Total: 24]
The petty cash book is printed on the next page
© UCLES 2019 0452/12/M/J/19

Sam – Petty Cash Book
Total Date Details Total Office Travel Cleaning Ledger
© UCLES 2019
received paid expenses accounts
$ $ $ $ $ $
2019
150 April 1 Cash .................. .................. .................. .................. ..................
.................. 3 Taxi fare 12 .................. 12

.................. .................. ..................
.................. 6 Parcel post 3 3

.................. .................. .................. ..................
Refund from cleaner for overpayment
5
.................. 11
.................. in March
....................................................... .................. .................. .................. .................. ..................
18 Kelly 35 35
.................. .................. ....................................................... .................. .................. .................. .................. ..................
.................. 21
.................. Printer paper
....................................................... 23
.................. 23
.................. .................. .................. ..................
15
Cleaner wage 56 56
.................. ..................
30 ....................................................... .................. .................. .................. .................. ..................
0452/12/M/J/19
.................. .................. ....................................................... 129
.................. 26
.................. 12
.................. 56
.................. 35
..................
30 Balance c/d 21
.................. .................. ....................................................... .................. .................. .................. .................. ..................
.................. .................. ....................................................... 150

.................. .................. .................. .................. ..................
.................. .................. ....................................................... .................. .................. .................. .................. ..................

21 Balance b/d
.................. May 1
.................. ....................................................... .................. .................. .................. .................. ..................
129 Cash
.................. .................. ....................................................... .................. .................. .................. .................. ..................
[Turn over
2
1 Sara Iqbal is a trader. Her financial year ends on 31 January. For

Examiner’s
Sara Iqbal maintains a petty cash book using the imprest system. The monthly imprest of Use
$100 is restored on the first day of each month.
The entries in Sara Iqbal’s petty cash book for February 2010 were as follows.
Sara Iqbal
Petty Cash Book
Total Date Details Total Office Travelling Cleaning Ledger

Received Paid Expenses Expenses Accounts
$ 2010 $ $ $ $ $
100 Feb 1 Balance b/d
5 Taxi fare 9 9
12 Stationery 13 13
16 N Jones 21 21
18 Train fare 2 2
21 Cleaning 25 25
26 W Smith 18 18
REQUIRED
(a) State two reasons why Sara Iqbal maintains a petty cash book.
petty cash book lists the transactions for transferring to ledger

1 ......................................................................................................................................
accounts
..........................................................................................................................................
petty cash book acts as a ledger account for petty cash transactions
2 ......................................................................................................................................
.................................................................................................................................... [2]
(b) Explain what is meant by the imprest system in relation to petty cash books.
The imprest system of petty cash is where the amount spent each period is
..........................................................................................................................................
restored so that the petty cashier starts each period with the same amount.
..........................................................................................................................................
.................................................................................................................................... [2]
(c) State one advantage of the imprest system.

The imprest system can help to reduce fraud
..........................................................................................................................................
.................................................................................................................................... [1]
© UCLES 2010 0452/21/M/J/10

3
(d) Calculate how much the petty cashier will receive on 1 March to restore the imprest. For
Examiner’s
$100
.......................................................................................................................................... Use
.................................................................................................................................... [1]
(e) (i) State how the double entry is completed on 28 February for the items recorded in
the travelling expenses column of the petty cash book.
traveling expense debit

..................................................................................................................................
cash credit
............................................................................................................................ [2]
(ii) State how the double entry is completed on 28 February for the items recorded in
the ledger accounts column of the petty cash book.
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
............................................................................................................................ [4]
(f) Sara Iqbal has been advised that she should depreciate her non-current (fixed) assets
each year and should apply the accounting principle of consistency.
State two reasons why Sara Iqbal should depreciate her non-current (fixed) assets.
1 ......................................................................................................................................
..........................................................................................................................................
2 ......................................................................................................................................
.................................................................................................................................... [2]
(g) Explain the principle of consistency.
..........................................................................................................................................
..........................................................................................................................................
.................................................................................................................................... [2]

2
1 Annie Rongsen maintains both a three column cash book and a petty cash book. She For
maintains the petty cash book on the imprest system with an imprest amount of $90. Examiner's
Use
She supplied the following information for the month ending 31 March 2013.
$
March 1 Petty cash balance 23
Petty cash restored to imprest amount ?
4 Paid postage 19
8 Paid taxi fares 16
13 An employee returned a loan paid out of petty cash in February 20
19 Paid parcel post 4
23 Paid R Singh, a credit supplier 24
29 Paid window cleaner 12
(a) State two reasons for maintaining a petty cash book in addition to a main cash book.
1 petty cash book lists the transactions for transferring to ledger

accounts
2 petty cash book acts as a ledger account for petty cash transactions
[2]
(b) State one advantage of using the imprest system of petty cash.
The imprest system can help to reduce fraud

[1]
(c) Enter the above transactions in Annie Rongsen’s petty cash book on the page
opposite.
Balance the book on 31 March 2013 and carry down the balance.
Make the entry on 1 April 2013 to restore the petty cash to the imprest amount.
[12]
(d) Explain how the double entry will be completed for the items shown in the postage
column of the petty cash book.
[2]
© UCLES 2013 0452/21/M/J/13

Annie Rongsen – Petty Cash Book
Ledger
Total received Date Details Total paid Postage Travel Sundries
accounts
© UCLES 2013
$ $ $ $ $ $
2013
23 March 1 Balance b/d
67 Cash
90
4 Postage 19 19
8 Taxi fares 16 16
20 13 Loan returned
4
19 Parcel post 4
3
23 R Singh 24 24
0452/21/M/J/13
29 Window cleaner 12
12
75 23 16 12 24
31 Balance c/d 15
90
2013
15 April 1 Balance b/d
75 Cash/Bank
[Turn over
For
Use
Examiner's
4
At the end of each month Annie Rongsen reconciles the bank columns in her main cash For
book with the statement received from the bank. Examiner's
Use
(e) Suggest two items which may appear in the cash book but not on the bank statement.
2 [2]
(f) Suggest two items which may appear on the bank statement but not in the cash book.
2 [2]
[Total: 21]
© UCLES 2013 0452/21/M/J/13

2
1 Sabelo is a trader. His financial year ends on 30 April.
He maintains a three column cash book and a petty cash book. The imprest amount is $120. All
payments under $90 are made from petty cash.
Sabelo had the following transactions in April 2019.
2019
April 1 Petty cash imprest restored from the business bank account
3 Paid Kenneth, a credit supplier, $58
8 Elijah, a credit customer, paid his account of $350 by bank transfer after deducting 2%
cash discount
11 Paid for taxi fare, $14
15 Bought stationery, $24
19 Paid for office expenses by cheque, $115
24 Paid for bus fare, $9
27 Paid Ziningi, a credit supplier, $585, by cheque, after deducting 2½% cash discount
28 Received a cheque for $100 from a tenant for rent
29 Cash sales, $820, of which $800 was paid directly into the bank
REQUIRED
(a) Record these transactions in the following books which appear on the next two pages.
Balance the books and bring down the balances on 1 May 2019.
(i) Petty cash book [9]
(ii) Three-column cash book [10]
© UCLES 2019 0452/21/M/J/19

(i) Sabelo
Petty Cash Book
Total Date Details Total Travel Postage Ledger
© UCLES 2019
received paid and accounts
stationery
$ $ $ $ $
2019
18 April 1 Balance b/d ................... ................... ................... ...................
102
................... ................... Bank
................................................... ................... ................... ................... ...................
120
................... ................... ................................................... ................... ................... ................... ...................
3 Kenneth 58
................... ................... ................................................... ................... ................... ................... ...................
11 Taxi fare 14 14 58
................... ................... ................................................... ................... ................... ................... ...................
15 Stationery 24 24
3
................... ................... ................................................... ................... ................... ................... ...................

24 Bus fare 9 9
0452/21/M/J/19
................... ................... ................................................... ................... ................... ................... ...................
105
................... ................... ................................................... ................... ................... ................... ...................
Balance c/d 15
................... ...................
30 ................................................... ................... ................... ................... ...................
120
................... ................... ................................................... ................... ................... ................... ...................
2019
15 May 1 Balance b/d
................... ................... ................................................... ................... ................... ................... ...................
105 Cash/Bank
[Turn over
(ii) Sabelo
Cash Book
© UCLES 2019
allowed received
2019 $ $ $ 2019 $ $ $
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
4
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
0452/21/M/J/19
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
2
1 Sabelo is a trader. His financial year ends on 30 April.
He maintains a three column cash book and a petty cash book. The imprest amount is $120. All
payments under $90 are made from petty cash.
Sabelo had the following transactions in April 2019.
2019
April 1 Petty cash imprest restored from the business bank account
3 Paid Kenneth, a credit supplier, $58
8 Elijah, a credit customer, paid his account of $350 by bank transfer after deducting 2%
cash discount
11 Paid for taxi fare, $14
15 Bought stationery, $24
19 Paid for office expenses by cheque, $115
24 Paid for bus fare, $9
27 Paid Ziningi, a credit supplier, $585, by cheque, after deducting 2½% cash discount
28 Received a cheque for $100 from a tenant for rent
29 Cash sales, $820, of which $800 was paid directly into the bank
REQUIRED
(a) Record these transactions in the following books which appear on the next two pages.
Balance the books and bring down the balances on 1 May 2019.
(i) Petty cash book [9]
(ii) Three-column cash book [10]
© UCLES 2019 0452/21/M/J/19

(i) Sabelo
Petty Cash Book
Total Date Details Total Travel Postage Ledger
© UCLES 2019
received paid and accounts
stationery
$ $ $ $ $
2019
18 April 1 Balance b/d ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................

3
................... ................... ................................................... ................... ................... ................... ...................
0452/21/M/J/19
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
................... ................... ................................................... ................... ................... ................... ...................
[Turn over
(ii) Sabelo
Cash Book
© UCLES 2019
allowed received
2019 $ $ $ 2019 $ $ $
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
4
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
0452/21/M/J/19
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
............... .................................... ............... ............... ............... ............... .................................... ............... ............... ...............
6
2 Saleh started to maintain a petty cash book on 1 August 2019. He decided to use the imprest
system, with the monthly imprest of $150 which would be restored on the first day of each month.
Saleh’s transactions for the month of August 2019 included the following.
$
August 4 Purchased stationery 21
9 Paid Omar, a credit supplier 57
14 Bought flowers for office 10
20 Paid taxi fare 9
26 Bought tea and coffee for office 7
30 Paid cleaner 30
REQUIRED
(a) Enter the transactions in Saleh’s petty cash book on the page opposite.
Balance the petty cash book and bring down the balance on 1 September 2019. [10]
© UCLES 2019 0452/12/O/N/19

Saleh – Petty Cash Book
Total Date Details Total Office Travel Cleaning Ledger
© UCLES 2019
received paid expenses accounts
$ 2019 $ $ $ $ $
150 Aug 1 Bank .................... .................... .................... .................... ....................
.................... 4
.................... Stationery
.................................................... 21
.................... 21
.................... .................... .................... ....................
.................... 9
.................... Omar
.................................................... 57
.................... .................... .................... .................... 57
....................
.................... 14
.................... Flowers for office
.................................................... 10
.................... ....................
10 .................... .................... ....................
.................... 20
.................... Taxi fare
.................................................... ....................9 .................... 9
.................... .................... ....................
Tea and coffee for office
.................... 26
.................... .................................................... 7
....................7 .................... .................... .................... ....................
30
7
.................... 30
.................... Cleaner
.................................................... .................... .................... .................... 30
.................... ....................
134 38 9 30 57
0452/12/O/N/19
.................... .................... .................................................... .................... .................... .................... .................... ....................
31 16
.................... .................... Balance c/d
.................................................... .................... .................... .................... .................... ....................
.................... .................... .................................................... ....................

150 .................... .................... .................... ....................
.................... .................... .................................................... .................... .................... .................... .................... ....................
16
.................... Sep 1
.................... Balance b/d
.................................................... .................... .................... .................... .................... ....................
134 Cash/Bank
.................... .................... .................................................... .................... .................... .................... .................... ....................
[Turn over
8
(b) (i) State the amount which was received on 1 September 2019 when the petty cash was
restored to the imprest amount.
..................................................................................................................................... [1]
(ii) State the double entry for restoring the imprest amount.
debit credit
[2]
(c) Show the entries which were made in the following accounts on 31 August 2019.
It is not necessary to total or balance the accounts.
Saleh
Office expenses account
............. ............................ ............. ............. ............................ .............
............. ............................ ............. ............. ............................ .............
Omar account
............. ............................ ............. ............. ............................ .............
............. ............................ ............. ............. ............................ .............
[2]
© UCLES 2019 0452/12/O/N/19

8
3 Amira owns an advertising agency. Her financial year ends on 30 April.
On 1 April 2018 she decided to use a petty cash book with a monthly imprest of $80 which would
be restored on the first day of each month.
REQUIRED
(a) State one reason for using a petty cash book.
...................................................................................................................................................
...............................................................................................................................................[1]
(b) State one advantage of the imprest system of petty cash.
...................................................................................................................................................
...............................................................................................................................................[1]
On 1 April 2018 Amira put $80 cash in the petty cash box.
Her transactions for the month of April 2018 were as follows.
$
April 4 Bought stamps 3
7 Purchased printing paper 8
11 Purchased ink cartridges 12
19 Paid window cleaner 10
22 Paid KK Limited, a trade payable 35
29 Purchased flowers for reception desk 7
REQUIRED
(c) Enter these transactions in Amira’s petty cash book on the page opposite.
Balance the petty cash book and bring down the balance on 1 May 2018.
[10]
© UCLES 2018 0452/11/M/J/18

Amira
Petty Cash Book
© UCLES 2018
Total Date Details Total paid Postage Computer General Ledger
received supplies expenses accounts
$ $ $ $ $ $
2018
80 April 1 Cash .................. .................. .................. .................. ..................
.............. .............. ......................................................................................... .................. .................. .................. .................. ..................
.............. 4
.............. Stamps
......................................................................................... 3
.................. 3
.................. .................. .................. ..................
.............. 7
.............. Printing paper
......................................................................................... 8
.................. .................. 8
.................. .................. ..................
.............. 11
.............. Ink cartridges
......................................................................................... 12
.................. .................. 12
.................. .................. ..................
10
9
.............. 19
.............. Window cleaner
......................................................................................... .................. .................. .................. ..................
10 ..................
0452/11/M/J/18
22 KK Limited 35 35
.............. .............. ......................................................................................... .................. .................. .................. .................. ..................
29 Flowers for reception desk 7
.............. .............. ......................................................................................... .................. .................. .................. .................. ..................
.............. .............. ......................................................................................... 68

.................. 3
.................. ..................
20 .................. 35
17 ..................
30 Balance c/d 12
.............. .............. ......................................................................................... .................. .................. .................. .................. ..................
80
.............. .............. ......................................................................................... .................. .................. .................. .................. ..................
2018
12 May 1 Balance b/d
.............. .............. ......................................................................................... .................. .................. .................. .................. ..................
..............
68 .............. Bank / Cash
......................................................................................... .................. .................. .................. .................. ..................
[Turn over
10
(d) Complete the following table to show the double entry to restore the petty cash imprest on
1 May 2018.
debit $ credit $
[3]
(e) Show the entry which would be made in the computer supplies account in April 2018. It is not
necessary to close or balance the account.
Amira
Computer supplies account
.......... ................................. .............. .......... ................................. ..............

.......... ................................. .............. .......... ................................. ..............
[1]
Amira balanced her cash book on 30 April 2018. The bank column showed that she had $17 620
in the bank.
On the same date the bank statement showed a different balance.
REQUIRED
(f) State two reasons for preparing a bank reconciliation statement.
1 .................................................................................................................................................
...................................................................................................................................................
2 .................................................................................................................................................
...............................................................................................................................................[2]
A comparison of the cash book and the bank statement revealed the following.
$
1 Items appearing only on the bank statement
Bank charges 28
Dishonoured cheque, Jabir 153
Business rates paid by direct debit 95
2 Items appearing only in the cash book
Cheque received from Shadya 824

Cheque paid to Abasi 1075
3 Debit side of cash book was undercast 100
© UCLES 2018 0452/11/M/J/18

2
1 Peter Pickard maintains a petty cash book. The monthly imprest of $250 is restored on the last
day of the month.
REQUIRED
(a) State two reasons for maintaining a petty cash book.
1 A petty cash book is used to record lowvalue cash payments
2 A petty cash book lists the transactions for transferring to ledger

accounts
[2]
(b) Explain the imprest system of petty cash.
The imprest system of petty cash is where the amount spent each period is restored
so that the petty cashier starts each period with the same amount.
[2]
(c) State one advantage of the imprest system of petty cash.
The imprest system of petty cash can help to reduce frauds

[1]
© UCLES 2014 0452/23/O/N/14

3
The entries in Peter Pickard’s petty cash book for August 2014 were as follows.
Peter Pickard
Petty Cash Book
Total Total Ledger

Date Details Postage Cleaning Sundries
Received Paid Accounts
$ 2014 $ $ $ $ $
250 Aug 1 Balance b/d
4 Window cleaner 25 25
10 Stamps 30 30
16 B Smith 36 36
21 Donation to charity 15 15
29 Office cleaner 83 83
31 W Jones 18 18
REQUIRED
(d) Calculate how much the petty cashier will receive on 31 August 2014 to restore the imprest.
$43
[1]
(e) Complete the following table to show the double entry to restore the imprest on
31 August 2014.
Debit Credit
[2]
(f) State how the double entry is completed on 31 August 2014 for the items recorded in the
cleaning column of the petty cash book.
[1]

4
(g) State how the double entry is completed on 31 August 2014 for the items recorded in the
ledger accounts column of the petty cash book.
[2]
Additional Information
Peter Pickard’s transactions for August 2014 included the following.
Aug 5 Sold goods on credit to S Bower, list price $1480, less 20% trade discount
13 Sold goods on credit to C Brooke, list price $1340, less 15% trade discount
19 S Bower returned goods, list price $160, purchased on 5 August
REQUIRED
(h) Make the necessary entries in Peter Pickard’s sales journal, sales returns journal, sales
ledger and nominal (general) ledger for the month of August 2014.
It is not necessary to balance the accounts.
Peter Pickard
Sales Journal
Date Details $ $
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
[3]
© UCLES 2014 0452/23/O/N/14

5
Sales Returns Journal
Date Details $ $
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
.......... ………………………………………………….. …………. ………….
[2]
Sales Ledger
S Bower account
.......... ………………………. ……... .......... ………………………. ……...
.......... ………………………. ……... .......... ………………………. ……...
.......... ………………………. ……... .......... ………………………. ……...
[2]
C Brooke account
.......... ………………………. ……... .......... ………………………. ……...
.......... ………………………. ……... .......... ………………………. ……...
[1]
Nominal (General) Ledger

Sales account
.......... ………………………. ……... .......... ………………………. ……...
.......... ………………………. ……... .......... ………………………. ……...
[1]

6
Sales Returns account
.......... ………………………. ……... .......... ………………………. ……...
.......... ………………………. ……... .......... ………………………. ……...
[1]
Additional Information
Peter Pickard sells on both cash and credit terms. He allows his credit customers a period of
30 days in which to pay their accounts.
The sales for the year ended 31 August 2014 were:
$
Cash sales 4 100
Credit sales 29 600
On 31 August 2014 the trade receivables amounted to $2340.
REQUIRED
(i) Calculate the collection period for trade receivables. Your answer should be rounded up to
the next whole day.
[2]
(j) State whether Peter Pickard would be satisfied with the collection period for trade
receivables.
[1]
(k) Explain how Peter Pickard’s payment period for trade payables may be affected by the
collection period for trade receivables.
[2]
[Total: 26]
© UCLES 2014 0452/23/O/N/14

8
3 (a) State one reason why a trader maintains books of prime entry.
...................................................................................................................................................
...............................................................................................................................................[1]
(b) Name the book of prime entry which also functions as a ledger account.
...............................................................................................................................................[1]
Jason is a trader. His financial year ends on 31 May.

On 1 May 2017 his ledger included the following balances.
$
Purchases 19 620
Purchases returns 850
Jason’s purchases journal and purchases returns journal for the month of May 2017 were as
follows.
Purchases journal
2017 $
May 2 Asnee 400
5 Botan 610
7 Chaitali 388
19 Asnee 190
24 Dae 517
2105
Purchases returns journal

2017 $
May 4 Asnee 105
15 Chaitali 55
160
REQUIRED
(c) Complete the following table, naming the source document used by Jason on each date, and
the person who issued the document.
Date Source document Issued by

May 2
May 4
[4]
© UCLES 2017 0452/12/O/N/17

9
(d) Prepare the following ledger accounts in the books of Jason for the month of May 2017.
Show the transfers to the income statement.
Jason
Purchases account
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..

[3]
Purchases returns account
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..

[3]

10
Jason owed Asnee $480 on 1 May 2017. He paid this balance by cheque on 6 May after deducting
2½% discount.
REQUIRED
(e) Prepare Asnee’s account in Jason’s purchases ledger for the month of May 2017. Include
entries for the relevant transactions recorded in Jason’s journals.
Jason
Asnee account
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..
...……. …………………........……. ….......….. ...……. …………………........……. ….......…..

[7]
Before preparing the financial statements Jason prepared a trial balance. The totals of the trial
balance did not agree.
REQUIRED
(f) State what is meant by the term ‘trial balance’.

A trial balance is a list of the balances on the accounts in the ledger at a certain date
...................................................................................................................................................
...............................................................................................................................................[2]
© UCLES 2017 0452/12/O/N/17

11
(g) Name and explain two errors which would not affect the balancing of the trial balance.
Error 1
Name ........................................................................................................................................
Error of omission
Explanation ...............................................................................................................................
Error of omission occurs when a transaction has been completely
omitted from the accounting records. Neither a debit entry nor a credit
...................................................................................................................................................
entry has been made.
...................................................................................................................................................
Error 2
Name ........................................................................................................................................
Error of principle
Error of principle occurs when a transaction is entered using the

Explanation ...............................................................................................................................
correct amount and on the correct side, but in the wrong class of
...................................................................................................................................................
account.
...............................................................................................................................................[4]
Jason prepared a sales ledger control account and a purchases ledger control account for the
year.
REQUIRED
(h) Explain why the preparation of control accounts would have helped Jason discover why the
totals of the trial balance did not agree.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...............................................................................................................................................[2]
[Total: 27]

6
2 (a) Yuri keeps a full set of accounting records. Name the ledger in which each of the following
accounts is found.
Account Ledger
Insurance Nominal Ledger
Sales Nominal Ledger
Purchases Nominal Ledger
Lottie, a credit supplier Purchase Ledger
Matthew, a credit customer Sales Ledger
Capital Nominal Ledger
[6]
(b) Yuri maintains a sales journal, a sales returns journal, a purchases journal and a purchases
returns journal. Name one other book of prime entry which he may maintain.
[1]
(c) State why it is useful for a business to maintain a sales journal.
[2]
On 1 April Susan and Elinor owe Yuri $260 and $120 respectively. Yuri’s sales journal and sales
returns journal for the month showed the following.
Sales journal
$
April 4 Susan 600
16 Elinor 320
920
Sales returns journal
$
April 12 Susan 105
17 Elinor 46
151
© UCLES 2014 0452/11/M/J/14

7
REQUIRED
(d) Prepare the following ledger accounts for the month of April. Balance the accounts where
necessary and bring down the balances on 1 May.
Elinor account
Sales account
Sales returns account
[8]
On 8 April Susan paid the amount she owed on 1 April, after taking 5% cash discount.
REQUIRED
(e) Calculate the amount which Yuri received from Susan.
[2]

8
Yuri employs a book-keeper to maintain the accounts of his credit customers.
REQUIRED
(f) Name the account which Yuri prepares to check for fraud or error in the book-keeper’s work.
[1]
[Total: 20]
© UCLES 2014 0452/11/M/J/14

9
3 Kadar is a food wholesaler. He maintains a full set of accounting records and prepares a trial
balance at the end of each financial year.
REQUIRED
(a) State two reasons why a trial balance is prepared.
1 ................................................................................................................................................
The trial balance can help in locating arithmetical errors
...................................................................................................................................................
A trial balance is useful in preparing financial statements

2 ................................................................................................................................................
...................................................................................................................................................
[2]
(b) Name three types of error which are not revealed by a trial balance.
Give an example of each.
1 Type of error .............................................

Error of Commission
Cash received from Shrishti credited to Sristi’s account.
Example ............................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
2 Type of error .............................................

Compensating error
Sales account underadded by $100 and purchase returns account
Example ............................................................................................................................
over-added by $100
...........................................................................................................................................
...........................................................................................................................................
3 Type of error .............................................

Error of complete reversal
Example ............................................................................................................................
Cash drawings debited to the cash account and credited to the
drawings account.
...........................................................................................................................................
...........................................................................................................................................
[6]

10
Kadar provided the following information at the end of his financial year on 31 March 2019.
$
Revenue 146 000
Purchases 137 300
Sales returns 1 400
Carriage outwards 2 970
Fixtures and fittings (at cost) 45 000
Provision for depreciation of fixtures and fittings 18 000
Motor vehicle (at cost) 16 850
Discount allowed 190
Discount received 230
Trade payables 14 600
Trade receivables 12 900
Operating expenses 17 190
Rent payable 5 200
Commission receivable 2 000
Bank overdraft 5 170
Capital 65 000
Inventory 1 April 2018 12 000

Inventory 31 March 2019 10 950
© UCLES 2019 0452/11/M/J/19

11
(c) Prepare the trial balance of Kadar at 31 March 2019.
Kadar
Trial Balance at 31 March 2019
Debit Credit
$ $
Revenue ........................ ........................

146 000
Purchases ........................
137 300 ........................
Sales returns ........................

1 400 ........................
Carriage outwards ........................

2 970 ........................
Fixtures and fittings (at cost) 45 000

........................ ........................
Provision for depreciation of fixtures and fittings ........................ ........................

18 000
Motor vehicle (at cost) 16 850

........................ ........................
Discount allowed ........................

190 ........................
Discount received ........................ ........................

230
Trade payables ........................ ........................

14 600
Trade receivables 12 900

........................ ........................
Operating expenses 17 190

........................ ........................
Rent payable ........................

5 200 ........................
Commission receivable ........................ 2 000

........................
5 170
Bank overdraft ........................ ........................
Capital ........................ 65 000

........................
Inventory ........................
12 000 ........................
Suspense
………………………… 300
........................ ........................
........................
251 000 251 000
........................
[9]

Accounts - Diwali HW

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2

1 Dev owns a business selling furniture.

The following transactions took place during August 2020.

Transaction Date Details $

Transaction Business document Book of prime entry

......... ...................................... ........... ......... ...................................... ...........

......... ...................................... ........... ......... ...................................... ...........

......... ...................................... ........... ......... ...................................... ...........

......... ...................................... ........... ......... ...................................... ...........

......... ...................................... ........... ......... ...................................... ...........

......... ...................................... ........... ......... ...................................... ...........

......... ...................................... ........... ......... ...................................... ...........

© UCLES 2020 0452/22/O/N/20

Dev is considering turning his business into a limited company.

© UCLES 2020 0452/22/O/N/20 [Turn over

Several transactions took place between the traders in October 2016.

Date Document Book of prime entry Book of prime entry

12 Debit note $115 ................................. .................................

16 Credit note $100 ................................. .................................

24 Cheque $720 ................................. .................................

31 Statement of account $460 ................................. .................................

(i) Debit note 12 October

Some goods were damaged so she wants to

(ii) Credit note 16 October

Udomo acccepts the request and is ready to

© UCLES 2016 0452/21/O/N/16

(iii) Statement of account 31 October

To summarise the transactions with Diane for

Date Details $ Date Details $

Oct 1 Balance b/d 720 ……… …………...………..... ………

........... ............................... ........... ........... …………...………..... ...........

........... ............................... ........... ........... …………...………..... ...........

........... ............................... ........... ........... …………...………..... ...........

........... ............................... ........... ........... …………...………..... ...........

........... ............................... ........... ........... …………...………..... ...........

........... ............................... ........... ........... …………...………..... ...........

© UCLES 2016 0452/21/O/N/16 [Turn over

credit Abebe account debit Abebe account no entry

© UCLES 2018 0452/21/O/N/18

Thato received the following invoice from Nyack, a credit supplier.

Terms: 2½% discount for payment in 30 days

© UCLES 2018 0452/21/O/N/18 [Turn over

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

© UCLES 2018 0452/21/O/N/18

Purchases returns journal

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ………………

……… ………………………………………… ……………… ……………….

……… ………………………………………… ……………… ……………….

Date Details $ Date Details $

……… …………………… ……… ……… …………………… ………