The following information is relevant for Questions 4.1 and 4.2. On 1 May 20X9 Marshall's cash book showed a cash balance of $224 and an overdraft of $336. During the week ended 6 May the following transactions took place. May 1 May 1 May 2 May 2 May 3 May 4 May 4 Sold $160 of goods to P Dixon on credit. Withdrew $50 of cash from the bank for business use. Purchased goods priced at $380 from A Clarke, on credit, less 15% trade discount. Repaid a debt of $120 owing to R Hill, taking advantage of a 10% settlement discount. The payment was by cheque. Sold $45 of goods for cash Sold $80 of goods to M Maguire on credit, offering a 12'/2% discount if payment made within 7 days. Marshall expects Maguire to take up this discount Paid a telephone bill of $210 by cheque.May 4 May 5 May 5 May 5 May 6 May 6 Purchased $400 of goods on credit from D Daley. Received a cheque from H Larkin for $180. Sold $304 of goods to M Donald on credit Purchased $135 of goods from Honour Co by cheque. Received a cheque from D Randle for $482. Purchased $100 of goods on credit from G Perkins. 4.1 What is the total of the sales day book? $534 (2 marks) 4.2. What is the total of the purchases day book? $823 (2 marks)4.3 Smith Co has the following transactions: 1 2 What are the correct ledger entries to record these transactions? A Purchase of goods on credit from T Rader: $450 Return of goods purchased on credit last month to T Rouble: $700 Dr Purchases Dr Purchase Returns Cr Cash Cr Trade Payables Dr Purchases Dr Trade Payables Cr Purchase Returns Dr Purchase Returns Dr Purchases Cr Trade Payables $450 $700 $450 $700 $700 $450 $450 $700 $1,150 $1,150 (2 marks)4.4 Mew Ling has the following transactions: 1 Receipt of cash from R Singh in respect of an invoice for goods sold three weeks ago 2 Receipt of cash from S Kalu for cash sales What are the ledger entries required to record the above transactions? A DrCash Cr Sales B Cr Trade Receivables C DrSales Cr Cash D Dr Trade Receivables Dr Sales Cr Cash (2 marks)4.5 How is the total of the sales day book recorded in the nominal ledger? Debit Credit A Receivables Receivables Ledger Control Account B Receivables Receivables Control Account Ledger C Sales Receivables Control Account “Receivables ‘Sales Control Account (2 marks)46 Identify, by indicating the relevant box in the table below, whether each of the statements is true or false. ‘A debit entry in the cash book True ‘False will increase an overdraft in the accounts. A debit entry in the cash book ‘True, False will increase a bank balance in the accounts, (2 marks)a7 ‘An accountant has inserted all the relevant figures into the trade payables account, but has not yet balanced off the account. TRADE PAYABLES ACCOUNT $ $ Cash at bank 100,750 Balance b/d 250,225 Purchases 325,010 Assuming there are no other entries to be made, other than to balance off the account, what is the closing balance on the trade payables account? A $474,485 DR B $575,235 DR Cc D $575,235 CR (2 marks)4.8 You are given the following information: Receivables at 1 January 20X3 $10,000 Receivables at 31 December 20X3 $9,000 Total receipts during 20X3 (including cash sales of $5,000) $85,000 What are sales on credit during 20X3? A $81,000 B $86,000 c $84,000 (2 marks)4.9 Abusiness sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days! time. What is the double entry to record the purchase in the customer's accounting records? A Debit cash $50, credit payables $50, credit purchases $50 B Debit payables $50, debit cash $50, credit purchases $100 Debit purchases $100, credit payables $50, credit cash $50 Debit purchases $100, credit cash $100 (2 marks)4.10. Tin Co purchases $250 worth of metal from Steel Co. Tin Co agrees to pay Steel Co in 60 days’ time. From the list of tokens below, identify the tokens needed to record the correct entries in Steel Co's books. pla a tet e Sales $250 Debit entry Receivables $250 Ls Credit entry Purchases $250 Payables $250 Cash $250 (2 marks)4.11 The following totals appear in the day books for March 20X8. Sales day book Purchases day book Returns inwards day book Returns outward day book Opening and closing inventories are both $3,000. What is the gross profit for March 20X8? coos $24,000 $20,000 $18,000 $ 40,000 20,000 2,000 4,000 (2 marks)4.12 William's trial balance at 30 September 20X5 includes the following balances: Trade receivables $75,943 Receivables allowance $4,751 How should these balances be reported in William's statement of financial position as at 30 September 20X5? B An asset of $75,943 and a liability of $4,751 Cc A liability of $71,192 D A liability of $75,943 and an asset of $4,751 (2 marks)4.13 A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correct? A Every debit balance represents an expense. 8 Cc Liabilities are represented by debit balances. D Income is included in the list of debit balances. (2 marks)4.14 At 30 November 20X5 Jenny had a bank loan of $8,500 and a balance of $678 in hand in her bank account. How should these amounts be recorded on Jenny's opening trial balance at 1 December 20X5? A Debit $7,822 B Credit $7,822 c D Debit $8,500 and Credit $678 (2 marks)4.15 Bert has extracted the following list of balances from his general ledger at 31 October 20X5: $ Sales 258,542 Opening inventory 9,649 Purchases 142,958 Expenses 34,835, Non-current assets (carrying amount) 63,960, Receivables 31,746 Payables 13,864 Cash at bank 1,783 Capital 12,525 What is the total of the debit balances in Bert's trial balance at 31 October 20X5? A $267,049 B $275,282 Cc $283,148 ‘D $284,931 (2 marks)4.16 At 31 October 20X6 Roger's trial balance included the following balances: $ Machinery at cost 12,890 Accumulated depreciation 8,950 Inventory 5,754 Trade receivables 11,745 Trade payables 7,830 Bank overdraft 1,675 Cash at bank 150 What is the value of Roger's current assets at 31 October 20X6? A B $17,499 Cc $15,974 D $13,734 (2 marks)4.17 Which ONE of the following statements does NOT describe a way in which an effective accounting system facilitates the provision of useful accounting information? A By requiring authorisation in line with organisational policies B By processing and recording transactions in accordance with accounting rules Cc D By enabling transactions to be recorded as necessary to permit preparation of financial statements (2 marks)4.18 Which of the following statements is/are TRUE or FALSE? go> ne Cash purchases are recorded in the purchases day book The sales day books is used to keep a list of invoices received from suppliers. Both statements are TRUE Statement 1 is TRUE and statement 2 is FALSE Statement 1 is FALSE and statement 2 is TRUE (2 marks)