TOPIC: CONTROL ACCOUNTS

1. Vijay Singh maintains a full set of accounting records and prepares control accounts at the
end of each month.

He provided the following information.

REQUIRED

a) Select the relevant figures and prepare Vijay Singh’s sales ledger control account for the
month ended 30 April 2015.

Vijay Singh
Sales ledger control account
 b) Explain the contra entry to the purchases ledger.

c) State one reason why Vijay Singh prepares a monthly sales ledger control account.

d) State two reasons why Vijay Singh does not use the information contained in the sales ledger
to prepare the sales ledger control account.

1.

2.
TOPIC: BANK RECONCILIATION STATEMENT

1 Eniola compared her bank statement for July 2020 with the bank columns of her cash
book. She provided the following information.

$
Overdrawn balance shown in the cash book at 31 July 2020 3420
Direct debit payment dated 25 July 2020, had not yet been entered in the
cash book 350
A cheque received from a customer on 12 July 2020 was dishonoured.
This dishonoured cheque had not yet been recorded in the cash book 665
Bank charges on the bank statement had not yet been entered in the
cash book 45
Unpresented cheques at 31 July 2020 1290
Uncredited deposits at 31 July 2020 410

REQUIRED

(a) Calculate the corrected balance of the bank columns in the cash book at 31 July 2020.

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(b) Prepare a bank reconciliation statement at 31 July 2020. Clearly identify the bank
statement balance at that date.

Eniola
Bank Reconciliation Statement at 31 July 2020

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ITOPIC: DEPRECIATION ON NON CURRENT ASSETS

AND DISPOSAL ACCOUNTN OF NON CURRENT ASSET
1
AND DISPOSAL ACCOUNT
Sariah owns a business selling ladies’ clothing. She maintains a system of double entry
bookkeeping.

The following occurred during September 2020.

1 Purchased a motor vehicle on credit from Sharpe Motors $6350.

2 Ruhee, a credit customer, was declared bankrupt owing Sariah $1200. The debt is to be
written off.
REQUIRED
(a) Prepare journal entries to record the above transactions. Narratives are not required.
Sariah Journal
Details Debit Credit
$ $

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[4]
Sariah is preparing her financial statements for the year ended 30 September 2020. She provides
the following information for fixtures and fittings.

2019 $
October 1 Fixtures and fittings at cost 28 600
 Provision for depreciation of fixtures and fittings 6 185
2020
January 31 Sold fixtures and received a cheque 1 150
The fixtures had been purchased on 1 February 2018 for $1500
March 31 Purchased new fixtures paying by cheque 3 500

Sariah’s policy is to provide depreciation on fixtures and fittings at 10% per annum using the
reducing balance method. A full year’s depreciation is charged in the year of purchase but none in
the year of disposal.

REQUIRED

(b) Prepare the following accounts for the year ended 30 September 2020. Close the
accounts by balancing or by making an appropriate year end transfer.

Sariah
Fixtures and fittings account

Date Details $ Date Details $

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Provision for depreciation of fixtures and fittings account

Date Details $ Date Details $

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Disposal account
Date Details $ Date Details $

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[11]
 ITOPIC: CASH BOOKN
OF NON CURRENT
Tarek Wahid is a sole trader who keeps full double entry records including a three
column cash book.

On 1 April 2006 his cash book showed the following debit balances:

$
Cash 125
Bank 6750

Tarek’s transactions for the month of April 2006 included the following:

April 5 Cheque for $230, received from Asmaa El Zein in March, was
dishonoured by the bank.

10 Received a cheque from Mohammed Riyas in settlement of his account of

$480, after deducting cash discount of 2 ½ %.

16 Paid cheques totalling $9980 for a new motor vehicle costing $9900,
and repairs to existing motor vehicle costing $80.

24 Paid Salma Abbas a cheque for $546 to settle the amount due, after
deducting cash discount of $14.

29 Cash sales amounted to $2150.

30 Paid all the cash into the bank except $100.

REQUIRED

(a) Enter the above transactions in Tarek Wahid’s cash book on the page opposite.

Balance the cash book at 30 April and bring down the balances on 1 May 2006.

[11]
 Tarek Wahid 3
Cash Book
Discount Cash Bank Date Details Discount Cash Bank
Allowed Received

$ $ $ $ $ $
 1 Leroy prepared a trial balance on 30 September 2015 which failed
to balance. He opened a suspense account. He then discovered the
following errors.

1 Discount allowed, $30, had been posted to the credit side of the
discount received account.

2 Receipt of cash, $85, from Yolanda, a credit customer, had been

credited to the account of Joanie.
3 The total of the sales returns journal, $110, had been posted as $100.

4 An invoice totalling $1000 for computer equipment and supplies had

included a charge of
$150 for stationery. The total amount had been posted to the office

equipment account.

REQUIRED

(a) State which two of these errors did not affect the balancing of the
trial balance and in each case name the type of error which had
occurred.

Error

Name

Error

Name
(b) Prepare journal entries to correct all four errors. Narratives are required.
(c) Prepare the suspense account, showing the
original difference on the trial balance.