1 40 000 b) a c) b

Book of prime entry Source document

Cash book Cheque counterfoil
Sales journal Sales invoice
Purchases journal Purchases invoice

b) Reduces number of entries in ledger.

c) 1) Discount Received 2) Discount allowed

3)

Date Details $ Date Details $

Jan 1 Balance b/d 300 Dec 31 Income 1380
statement
April 1 Bank 1440 Balance c/d 360
1740 1740

Jan 1 Balance b/d 360

b)

Account debited Account credited

Drawings Bank

6c)

Book of prime entry

Ali sold goods, $250, to Farhad Sales journal
Farhad returned half of the goods bought Sales returns journal
on 5 January
Farhad paid the amount owed on 1 January Cash Book
having deducted 3% cash discount

Transaction Account debited $ Account credited $

1 Bank 10000 Loan 10000
2 Motor vehicles 8000 Bank 8000
3 Purchases 300 John 300
4 Cash 80 Sales 80

Debit Credit
1 Capital 300
 2 Motor Vehicle 12000
3 Valley Machine 990

9a) 1) 15% 2) $187 3) $217

b) Jai Kapur

c) The goods are faulty and have been returned to the seller

d) Debit note

e)

Books of Jai Kapur Books of Vijay Singh

Account debited Account credited Account Debited Account credited
Sales returns Vijay Singh Jai Kapur Purchases returns

10a)

11a) 640*100/80= $800

b)

a)

February Transaction Document

4 Payment Cheque counterfoil
8 Purchases Invoice
14 Purchases returns Credit note

b)

Feb 14 Returns 280 Feb 1 Balance b/d 560

26 Bank 546 8 Purchases 640
Discount 14
28 Balance c/d 360
1200 1200
March 1 Balance b/d 360

Feb 4 Bank 200 Feb 1 Balance b/d 200

28 Balance c/d 690 10 Bank 200
19 Purchases 480
28 Interest 10
890 890
 March 1 Balance b/d 690

12a)

b)

13a) 15 300/154 400= 37 days

b)

14a) The book where transactions are recorded

b) Cash book 2) General journal

15a)

Debit entry Credit entry

$ $
1 Bank account 8000 Capital account 8000
2 Bank account 2000 Loan account 2000
3 Van account 5200 A1 Motors account 5200
4 Purchases account 3700 Bank account 3700
5 Rent account 1000 Bank account 1000
6 Cash account 100 Bank account 100

b) 5 200

16) Issued when goods are returned to the supplier

When goods are faulty and have been returned to the seller

Used for checking if they are no errors made by supplier

17a) $316 2) Mariam Soliman

b)

Transaction Document Book of prime

Aug 9 Goods Sales invoice Sales Journal
13 Returns Credit Sales Returns Journal
24 Payment Cheque Cash book

c)

$ $
Aug 13 Returns 24 Aug 1 Balance b/d 520
24 Bank 507 9 Purchases 340
 Discount 13
31 Balance c/d 316
860 860
Sep 1 Balance b/d 316
18a) 8500/45000*365= 69days

b)

c) May result in further supplies being refused

19)

Document Paul Chew’s book of Kim Chan’s book of

prime entry prime entry
Paul Chew sold goods Invoice Sales Journal Purchases Journal
on credit to Kim Chan
Kim Chan notified Paul Debit note No entry No entry
Chew of an
overcharge
Paul Chew notified Credit note Sales Journal Purchases Journal
Kim Chan that he
agreed the overcharge
Paul Chew sent Kim Statement of No entry No entry
Chan a summary of accounting
the month’s

19)

$ $
Sep 7 Bank 274 Sep 1 Balance b/d 274
Fed 1 Cash 96 Aug 31 Income 209
Statement
Aug 31 Balance c/d 113
483 483
Sep 1 Balance c/d 113

b)

Debit Credit
Drawings 300
Drawings 108

20a) Assets= Capital + Liabilities

b) Actual resources in the business- Assets

Name given to the amount owing to assets- Liabilities

Goods bought for resale not yet sold- Inventory

c)

d)

Debit account Credit account

Taha receives a cheque from Bank Michael
Micheal, a credit customer
Taha writes off of a debt owed Bad Debts Zoe
by Zoe

e) Sales Ledger

f) False

False

False

True

False

21a) $75, $1000, $750, $175, $1575

b) $1575

c) Credit Note

d) A service business provides a service to its customers or clients

21) Purchases are amounts paid by the business

22) A

23a) Sales invoice

Credit note

b) Cash book

General journal

c)

$ $
520
96
 600
48
1264 1264