5B1 – PRINCIPLES OF ACCOUNTS ASSIGNMENT (TO BE DONE IN CLASS)

Assignment date: 14 September 2020

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1. Indicate whether the following sentences are true or false

a. Journals are also called books of original entry  -true 
b. The cash book contains both the cash and bank accounts   false 
c. Credit notes are entered in the returns outwards journal - false
d. Cash sales are recorded in the sales journal   true 
e. Fixed assets are recorded in the general journal false 
 

2. Using the information given below, calculate the gross profit:

Sales   10 000
Returns inwards       100
Purchases     5 000
Opening inventory     1 000
Closing inventory                1 500
GROSS PROFIT = 5400
Purchase invoice   Cash book
Bank deposit Sales journal
Debit note Returns inwards journal
Credit note Purchases journal
Sales invoice Returns outwards journal