\ 1 Sophie employs a book-keeper to maintain her accounting records. The book-keeper was taken ill and was unable to complete the accounting records for August 2019. ‘The entries the book-keeper made in the cash book for August 2019 are shown on the opposite page. The following transactions took place on 31 August 2019, 1 Received a cheque from Jason to settle his debt of $550 after deducting 2% cash discount. 2 Paid a cheque to Ellie for $858 to settle her account after deducting 214% cash discount. Sophie received her bank statement for August and compared it with her cash book. ‘The following items appeared on the bank statement but had not been recorded in Sophie's accounting records. $ Bank charges 53 Cheque received from Jack on 17 August dishonoured 156 Payment of insurance by direct debit 50 Acredit customer, Bella, had paid her account by credit transfer 260 REQUIRED (a) Complete Sophie's cash book on the page opposite. Balance the cash book and bring down the balances on 1 September 2019. (9) © UCLES 2010 oss2r2401NI19sieve of z 1 6ny 610z $ area | ued 00g uSeD) erydos ouctEs 20192 (b) State the meaning of the balance in the bank column in the cash book on 1 August 2019. - [i] (c)_ State the meaning of the entry made in the cash book on 2 August 2019, - (ty ~ [2] The bank had not recorded transactions entered in the cash book on 30 August and 31 August 2019. REQUIRED (e) Prepare a bank reconciliation statement for Sophie at 31 August 2019 to determine the balance on the bank statement. Sophie Bank Reconciliation Statement at 31 August 2019 . (5) (f) State two reasons for preparing a bank reconciliation statement. 1 ~ [2] © UCLES 2019 o4s2720/01N18Sophie's ledger is divided into three: the sal€s ledger, the purchases ledger and the nominal (general) ledger. REQUIRED @) ii) (iii) © UCLES 2019 Identify one transaction recorded in Sophie's cash book which would also be recorded in the sales ledger. . Identify one transaction recorded in Sophie's cash book which would also be recorded in the purchases ledger. (1) Identify two transactions recorded in Sophie's cash book which would also be recorded in the nominal (general) ledger. 1. 2 - 2 (Total: 24] o4s2720/01N18 [Turn overSaleh balanced his cash book on 31 August 2019 and compared the balance on the bank column with his bank statement. The following differences were found. tems not recorded in the cash book Bank charges Credit transfer from Laila Insurance premium paid by standing order tems not recorded on the bank statement Cheque paid to Kalifa Cheque paid to Fatima Cash sales REQUIRED (d)_ Update the bank columns of the cash book. Bring down the new balance on 1 September 2019. Saleh $ 22 190 30 114 175 363 Cash Book (bank columns only) Date Details $ Date 2019 2019 Sept 1 ouctES 2019 04821121019 Balance(e) Prepare a bank reconciliation statement at 31 August 2019 to show the balance on the bank statement on that date. Saleh Bank Reconciliation Statement at 31 August 2019 6 [Total: 25] © ucLES 2010 o48211200N19Sophia maintains a full set of books of prime (original) entry including a three column cash book. REQUIRED (c) Explain why Sophia's cash book is both a book of prime (original) entry and also part of the ledger. The bank columns of Sophia's cash book for the month of April 2018 were as follows. Cash book (bank columns only) Date Details s Date 2018 2018 April 1 Balance bid 950 April 2 8 | Goodfoods 140 15 28 CD Limited 280 2 30 | Sales att 29 Details Petty cash Expenses Lowlands Farm FF Limited Sophia's business bank statement for April 2018 was as follows. The 1 Bank Statement for the month of April 2018 2018 April 1 Balance 5 000198 9 Credit 12 Standing order (insurance) 18 000199 20 _Dishonoured cheque (Goodfoods) 27 000200 30 Charges Direct debit (rates) following errors were discovered. Debit s 106 50 25 140 44 15 400 Cheque | § number 000198 106 000199 25 000200 44 000201 90 Credit Balance 140 $ 850 Cr 744 Cr 884 Cr 834 Cr 809 Cr 669 Cr 625 Cr 610 Cr 210 Cr (2) ‘Sophia had brought down the cash book balance on 1 April 208 incorrectly. It should have been $850. The bank had incorrectly entered a standing order for insurance in Sophia's business bank account instead of her personal bank account. ‘OUCLES 2018 osszr2anauinsREQUIRED (d) Select the items required to update Sophia's cash book on 30 April 2018 and write these items in the table. Indicate how each item would be entered in the cash book. The first one has been completed as an example. entry required in cash book tem debit credit $ $ [cash book error 400 8 Sophia prepared a bank reconciliation statement on 30 April 2018. She started with the credit balance shown on the bank statement at that date. REQUIRED (e) Select the items which would be entered in Sophia's bank reconciliation statement on 30 April 2018 and write these items in the table. Place a tick (Y) in the correct column to indicate how each item would be recorded in the bank reconciliation statement. entry in bank reconciliation statement item deducted from ote to bank bank statement balance (4) [Total: 23] ©UcLES 2018 ossazznuuna [Turn overq (d) Complete the following table to show the double entry to restore the petty cash imprest on 1 May 2018, debit $ 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 Date Details $ Date Details $ a Amira balanced her cash book on 30 April 2018. The bank column showed that she had $17620 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) ‘Acomparison 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 tems 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 ‘© UoLEs 2018 oasavni niaREQUIRED (g)_ Update the cash book of Amira Bring down the updated balance on 1 May 2018. Amira Cash Book (bank columns only) Date Details $s Date Details 8 2018 April 30. Balance b/d 17620 (5) (h) Prepare a bank reconciliation statement for Amira at 30 April 2018 to determine the balance shown on the bank statement. Amira Bank Reconciliation Statement at 30 April 2018 (4) OUCLES 2018 oasaini nnn [Turn over(I. ()) State the bank balance which would appear in the statement of financial position on 30 April 2018. Name the section in which it would appear. Amount of bank balance S... Section of statement of financial position... -l2] (Suggest two possible reasons why the cheque from Jabir was dishonoured. 1 [2] (Total: 31] © UCLES 2018 oxsavti anaQe 3 _Lefika isa trader. He maintains a three column cash book. Lefika had the following transactions in August 2018. August 5 16 28 30 31 3 REQUIRED Received a cheque from Tabia, $441, in settlement of her account less 2% cash discount Paid Tebago’s account of $280 by cheque after deducting a cash discount of 2%% Received a cheque from Nyack, $282, in full settlement of his debt of $290, Cash sales, $243, of which $153 was paid directly into the bank Received $250 cash from the disposal of a non-current asset Lefika took cash, $200, for personal use Paid all the cash into the bank except $20 (a) Complete Letika’s cash book on the page opposite. Balance the cash book and bring down the balances on 1 September 2018. © UCLES 2018 (12) ase ONGeset pq eourjeg | 1 ny of pq eouryeg | 4 ny $ slog s BLo7 $s $ Penjeoes s $ pemolre yuea yseg | qunoosiq sireiea era | twee yseQ —unoosiq sere era 3008 USED eyeT [Turn over 4s211/0NB (© UCLES 2018[ On 31 August Lefika’s bank statement showed a bank overdratt of $812. He compared the cash book with the bank statement and found that the bank had not recorded the transactions entered in the bank columns of the cash book on the following dates. ‘August 8 16 28 31 REQUIRED (b) Prepare a bank reconciliation statement at 31 August 2018. Lefika Bank Reconciliation Statement at 31 August 2018 -- (6) LLefika’s ledger is divided into a sales ledger, a purchases ledger and a nominal (general) ledger. REQUIRED (C)_ State one advantage of dividing the ledger into these three sections. (d)_ Name the ledger in which each of the following accounts would appear. (Nyack (a credit customer) account ledger (i) Purchases account ledger (iil) Discount received account... .. ledger (iv) Tebago (a credit supplier) account... .- ledger (4) [Total: 23] OUCLES 2018 ase VONIG * sr trader. On 30 April 2017 his cash book showed cash in the bank, $2890. When he my pared this with the bank statement balance at the same date he found the following, 1 Actedit transter for $340, paid by Yeo, had been recorded in his cash book as $430. 2 Bank charges, $50, were shown on the bank statement but had not been recorded in the cash book 3 Acheque to a supplier, $400, had not been presented 4 Acheque paid into the bank, $180, had not yet been credited. 5 Acheque, $200, received trom a customer, had been dishonoured. ‘These items accounted for the difference between the cash book balance and the bank statement balance. REQUIRED (a) State what is meant by a bank statement. (4) ©UCLES 2017 ossonznaun7 [Turn over(d)_ Prepare Yeo's bank reconciliation statement at 30 April 2017. Yeo Bank Reconciliation Statement at 30 April 2017 (6) (e) State the amount for bank which would appear in Yeo's statement of financial position at 30 April 2017. Name the section of the statement of financial position in which it would be shown. (2) (f) State one reason why a cheque may be dishonoured. (1) (g) Name one method, other than preparing a bank reconciliation statement, which Yeo could use to check for errors in his books of account. ee] [Total: 16] (© UCLES 2017 ossanranuuin71] 2 The cash book of Aireville Limited was balanced on 31 December 2015 and showed an overdraft of $3420. On the same date, the bank statement showed an overdraft of $1800. ‘Acomparison of the cash book and the bank statement revealed the following. s 1 Items appearing only on the bank statement Bank charges 190 Dishonoured cheque, PB Limited 330 2 tems appearing only in the cash book Cash sales paid into bank 28 December 2015 1560 Cheque paid to M Raja, a credit supplier 2700 3 Debit side of the cash book being undercast 1000 REQUIRED (a) Update the cash book of Aireville Limited. Bring down the updated bank balance on 1 January 2016. Aieville Limited Cash book (bank columns only) Date Details s | Date Details $ 2016 Jan 1 Balance b/d | 3420 [4] OUCLES 2016 o4sorornat6 [Turn over(b) Prepare a bank reconelliation cond for b. Limited at 31 December 2015. Aireville Limited Bank Reconciliation Statement at 31 December 2015 (6 ‘The financial year of Aireville Limited ends on 31 December. The following information is available. Att January 2015 s Ordinary share capital - 600000 shares of $0.50 each 300000 General reserve 24000 Retained earnings 45000 During the year ended 31 December 2015 Issue of ordinary shares ~ 100000 shares of $0.50 each 50000 Payment of final dividend relating to the financial year ended 31 December 2014 25000 Payment of interim dividend relating to the financial year ended 31 December 2015 15000 At 31 December 2015 Profit for the year 49000 ‘Transfer to general reserve 10000 OUCLES 2016 oasomarmie2 {a) State two reasons why a trader should reconcile the cash book balance with the balance ‘shown on the bank statement at the end of each month. On 31 January 2015 David Jones balanced his cash book and brought down a debit balance of $114 on 1 February. The bank statement showed a credit balance of $154 on 31 January 2015, ‘A comparison of the cash book and the bank statement revealed the following, $ 1 Items appearing only in the cash book Cash from sales paid into the bank on 28 January 235 ‘Cheque paid to M Sharp, a credit supplier 490 2. Items appearing only on the bank statement Bank charges 62 ‘Cheque received from K Taylor, a credit customer, dishonoured 143 Insurance premium paid by standing order 40 Interest on deposit account paid directly into the bank 130 3 The total of the debit side of the cash book had been overcast 100 © uCLES 2015 ossarz2nauns [Turn overvb {b) Update the cash book of David Jones. Bring down the updated bank balance on 1 February 2015, REQUIRED David Jones Cash book (bank columns only) Date Details $ | Date Details $ 2015 Feb 1 | Balance bid 114 (6) © uctEs 2015 ossarzanuns(c) Prepare a bank reconciliation statement for David Jones at 31 January 2015. David Jones Bank Reconciliation Statement at 31 January 2015 (6) {d) (i) State whether the cash book balance or the bank statement balance should be shown in David Jones’ statement of financial position at 31 January 2015. (ii) Give a reason for your answer in (i). 3) {e) State two reasons why David Jones’ bank manager would be interested in his financial statements, [Total: 19] © UcLES 2015 ossarzanwuns [Turn over