Name: Rihanna Williams

Pool: 5

Question One
 1. Source documents
2. Journalize
3. Post to ledgers
4. Extract a Trial balance
5. Adjusting and closing entries
6. Preparation of financial statements

● Trial Balance- is the list of accounts showing them as debit or credit.

● Source Documents- are the evidence a transaction took place.
B.
● Employees
● Owners
C.
● Employees requiring accounting financial information will help an employee to
access its career opportunity.
● Owners are the people who provide capital for the business.
D.
● Investors
● Customers
E.
● Investors- these may be private individuals, companies or banks, any or all of which
will want to monitor the performance of the business to ensure that they will get a
return for their investments.
● Customers require financial information to help maintain the business’s existence and
stability in its operation.
F.
The Ethics code ensures that all members of the company demonstrate integrity and
honesty in their work with clients and other professional relationships.

G.
● Culture
● Law
H.
● Effective communication
I. State the principle, concept or convention that is being violated in each scenario given
below.
i) J. Jarvis, the shop owner, purchases pens for personal use and records them in the business’
stationery account. Business Entity Concept
ii) James Supermarket’s accountant uses a different method of stock valuation and
depreciation each year to pay the lowest possible rate of tax. Consistency
iii) The CEO at Food Groups suggests that accounting statements only be released when there
is a significant change in the business and not every period. Going concern concept
iv) The manager at ‘Masks n More’ would like to include a figure that accounts for the value
of good management. Willingness
TOTAL 20 marks

Question Two
J. Jacob has presented you with the following transactions for the month of February 2020.
2020
Feb 1 Purchased goods from A. Jones $3200
less 20% trade discount (p
Feb 3 Sold goods to P. Scott on credit $550
Feb 9 Goods returned by P Scott $35
Feb 12 Bought goods on credit from K.
Reid $985
Feb 15 Returned to K. Reid goods $60
Feb 19 P. Scott bought goods on credit
$1050
Feb 20 Returned goods to K. Red $15
Feb 22 Purchased goods on credit from A.
Thompson $630
Feb 26 Credit Sales to R. Robinson $420
Feb 28 P. Scott returned goods $30
Required:
***Be sure to include all folios.
Write up the Purchases Journal p. 30 and the Sales Journal p. 25 (8 marks)

Purchases Journal p.30

Date Particular Invoice # Folio Amount $
2020
Feb 1 A. Jones 30 PL11 2560
Feb 12 K. Reid 31 PL12 985
Feb 22 A. Thompson 32 PL13 630
Transferred GL30 4175
amount to
Purchases
Account

Sales Journal p.25

Date Particulars Invoice # Folio Amount $

2020
Feb 3 P. Scott 15 SL11 550
Feb 19 P. Scott 16 SL12 1050
Feb 26 R.Robinson 17 SL13 420
Transferred GL32 2020
Amount to
Sales Account

a. Post the totals from (a) above to the relevant accounts in General Ledger,
balancing off the accounts. (6 marks)

Sales c/c No.12

Dr $ Cr $
Date Particula Folio Amoun Date Particula Folio Amoun
2020 r t$ 2020 r t$
Feb 20 Credit c/d 2020 Feb 29 Credit SJ30 2020
sales for Sales for
the the
month month
Mar 1 b/d 2020

Purchases a/c No. 13

Dr$ Cr$
Date Particula Folio Amoun Date Particula Folio Amoun
2020 r t$ 2020 r t$
Feb 19 Credit PJ30 4175 Feb 29 Credit c/d 4175
purchase purchase
s for the s for the
month month
 Mar 1 b/d 4175

b. Draw up K. Reid’s account for the month of February, showing the balance
brought to March 2020. (5 marks)

K. Reid a/c No.12

Dr $ Cr$
Date Particula Folio Amoun Date Particula Folio Amoun
2020 r t$ 2020 r t$
Feb Ret. Out ROJ1 60 Fen 12 Sales SJ20 985
12
Feb Balance c/d 925
29
985 985
March Balance b/d 925
1

c. P. Scott is a/an liability to the business. (1 mark)

TOTAL 20 MARKS

Question Three
 Cash Book pg.3

Details Folio Discoun Cas Bank Details Folio Discoun Cas Bank
t h t h
2009 $ $ $ 2009 $ $ $
May 1 b/d 253 1560 May 3 GL1 6300
Bank 0 0 Wages 1
May 5 GL0 1000
Bank 1 0
May 8 T. SL2 465 May 10 PL1 250 4750
Richards M. Duff
May 17 L. SL3 225 4275 May 13 GL1 765
Joseph Electricit 3
y
V. Thola SL4 128 2432 May 22 C 500
Cash
May 22 C 500 May 26 PL14 588 2352
Bank Quashie
May 30 GL4 200 May 26 GL1 25000
Cash 2 Drawings 5
May 31 c/d 5595 May 31 c/d 193
Bank Cash 0
353 319 3840 838 319 38402
5 2 5
June 1 b/d 5595 June 1 b/d 193
Balance Balance 0

● The closing balance on the bank account signifies the balance that is to be brought
forward to the next account.

b. The following balances were extracted from the books of O. Stone at the end of March
2019.

$
Drawings 5000
General Expenses 500
Sales  40000
Purchases 29000
Debtors 6800
Creditors 9000
Bank balance (Dr) 12100
Cash 3200
Computer 5000
Insurance 1500
Rent 2,400
Loan from NCB 4,000
Capital ???

Required: 
Prepare a Trial Balance using the above balances. (7 marks)

O. Stone

Trial Balance as at 31 March 2019

Accounting Dr $ Cr $

Drawings 5000

General Expenses 500

Sales 40000

Purchases 29000

Debtors 6800

Creditors 9000

Bank balance 12100

Cash 3200

Computer 5000

Insurance 1500

Rent 2400

Loan from NCB 4000

Capital 12500

65500 65500

TOTAL 20 MARK