6

2 Ramla has calculated her draft profit figure for the year ended 28 February 2023.
Adjustments in Ramla’s ledger accounts have still to be made for the following items.

1 An amount of $99 owed to Ramla by Mai is to be written off as irrecoverable.

2 Fixtures and fittings, $875, were purchased on credit from Padma.

3 A loan repayment, $500, had been incorrectly recorded as loan interest.

4 Rent paid, $350, had been recorded as $530.

5 Drawings, $120, had been debited to the wages account.

REQUIRED

(a) Prepare the journal entries required for items 1–5. Narratives are not required.

Ramla
Journal
Item Details Debit Credit
number $ $

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

[10]

© UCLES 2023 0452/22/M/J/23

 7

(b) Complete the following table by entering the amount of each adjustment required to calculate
Ramla’s adjusted profit. If an item has no effect on profit, enter zero (0) in the ‘no effect on
profit’ box.

Item Increase in Decrease in No effect on Profit

profit profit profit
$ $ $
Draft profit 11 650

Adjusted profit
[6]

(c) Explain

(i) how the journal for item 1 complies with the prudence principle.

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

..................................................................................................................................... [2]

(ii) how the journal for item 5 complies with the business entity principle.

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

..................................................................................................................................... [2]

[Total: 20]

© UCLES 2023 0452/22/M/J/23 [Turn over

 18

Amadi then discovered the following errors.

1 The general expenses account had been undercast by $200.

2 A rent payment, $516, had been posted to the rent and rates account as $615.

3 The total for discount received in the cash book for February 2023, $165, had been debited to
the drawings account. No other entry for this total had been made.

REQUIRED

(b) Prepare the suspense account.

Amadi
Suspense account
Date Details $ Date Details $
2023 2023

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

[5]

REQUIRED

(c) Prepare the trading section of Amadi’s income statement for the year ended 31 March 2023.

© UCLES 2023 0452/22/M/J/23

 10

3 Eshe is a trader. She has prepared a trial balance at 31 March 2023. The totals did not agree and
the difference was placed in a suspense account.

Eshe later discovered the errors shown in the following table.

REQUIRED

(a) Complete the table to show the entries required to correct each error. The first one has been
completed as an example.

Entries required to correct the error

Error Debit Credit
Account $ Account $

A payment for rent, $300, had been Rent paid 300 Insurance 300
debited to the insurance account.

Credit sales to Raymond of $105 ................... ............ ................... ............

had been debited to the sales
account and credited to Raymond’s ................... ............ ................... ............
account.

Eshe’s total drawings from the bank ................... ............ ................... ............
for her own use, $9500, had been
debited to the cash account. ................... ............ ................... ............

A purchases invoice from Danika ................... ............ ................... ............

for $137 had been recorded in her
account and in the purchases journal ................... ............ ................... ............
as $173.

Returns inwards, $44, had not been ................... ............ ................... ............
recorded in the returns inwards
account. ................... ............ ................... ............

The motor expenses account had ................... ............ ................... ............

been overcast by $100.
................... ............ ................... ............
[10]

© UCLES 2023 0452/21/M/J/23

 11

(b) Prepare the suspense account. Include the balancing figure as the original difference on the
trial balance.

Eshe
Suspense account
Date Details $ Date Details $

............. ................................. ............ ............ ................................. ............

............. ................................. ............ ............ ................................. ............

............. ................................. ............ ............ ................................. ............

............. ................................. ............ ............ ................................. ............

............. ................................. ............ ............ ................................. ............

[3]

Eshe’s capital at 1 April 2022 was $31 000. Her draft profit for the year ended 31 March 2023
before correction of the errors was $15 600.

REQUIRED

(c) Calculate Eshe’s capital at 31 March 2023 after the errors have been corrected.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [7]

[Total: 20]

© UCLES 2023 0452/21/M/J/23 [Turn over

 6

2 Rai is a trader. He has prepared his trial balance at 31 January 2023. The credit side totalled $152
more than the debit side. Rai placed the difference in a suspense account.

Rai later discovered the following errors.

1 Wages, $200, had been entered in the cash book but omitted from the wages account.

2 A credit purchase, $247, from Stella, had been debited to Stella’s account and credited to the
purchases account.

3 The rent payable account and the sales account had both been overcast by $100.

4 A cheque for motor expenses, $75, had been debited twice to the motor expenses account.

5 A payment to Jasper, $196, had been recorded as $169 in Jasper’s account.

REQUIRED

(a) Prepare the journal entries to correct errors 1–5. Narratives are not required.

© UCLES 2023 0452/22/F/M/23

 7

Rai
Journal
Error Details Debit Credit
number $ $

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

............... …………………………………………..........….. ...................... ......................

[10]

© UCLES 2023 0452/22/F/M/23 [Turn over

 8

(b) Prepare the suspense account.

Rai
Suspense account
Date Details $ Date Details $

............. .................................. ............. ............. .................................. .............

............. .................................. ............. ............. .................................. .............

............. .................................. ............. ............. .................................. .............

............. .................................. ............. ............. .................................. .............

............. .................................. ............. ............. .................................. .............

[4]

Rai’s original draft profit, before correcting the errors, was $9800.

REQUIRED

(c) Calculate Rai’s profit after correction of errors 1–5.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [4]

Rai’s trial balance was used to check the arithmetical accuracy of the ledger accounts. His journal
was used to correct the errors found.

REQUIRED

(d) State:

(i) one other use of the trial balance

...........................................................................................................................................

..................................................................................................................................... [1]

(ii) one other use of the journal.

...........................................................................................................................................

..................................................................................................................................... [1]

[Total: 20]
© UCLES 2023 0452/22/F/M/23
 10

3 Mosi is a trader. The totals of his trial balance at 30 April 2022 did not agree and the difference
was placed in a suspense account.

Mosi later discovered the following errors.

1 Commission received, $96, had been debited to the discount received account. The entry to
the bank account was correctly made.

2 The total of the sales journal for April 2022, $1258, was transferred to the sales account as
$2185.

3 A cheque payment for motor expenses, $77, had been omitted from the book-keeping
records.

4 A payment by electronic transfer, $135, was recorded as a payment in the petty cash book.

5 An invoice received from Tracey, $160, was credited to the account for Stacey.

REQUIRED

(a) Prepare the journal entries to correct errors 1–5. Narratives are not required.

© UCLES 2022 0452/22/M/J/22

 11

Mosi
Journal
Error Details Debit Credit
number $ $

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

................. ...................................................……........ .................…… .................……

[11]

© UCLES 2022 0452/22/M/J/22 [Turn over

 12

(b) Prepare the suspense account. Include the original difference on the trial balance as a
balancing figure.

Mosi
Suspense account
Date Details $ Date Details $

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

[4]

Mosi’s original draft profit, before correcting the errors, was $39 970.

REQUIRED

(c) Calculate Mosi’s corrected profit for the year ended 30 April 2022.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2022 0452/22/M/J/22

 10

3 Jules is a hairdresser. He bought some new energy-saving hairdrying equipment, $1900, on credit
from YZH Limited on 30 April 2022.

REQUIRED

(a) Prepare the journal entry to record the purchase of these hairdryers. A narrative is required.

Jules
Journal
Date Details Debit Credit
$ $

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

[3]

The new hairdryers will use less electricity than his old ones. There will be an additional insurance
charge for the new hairdryers. The old hairdryers had been fully depreciated so that their net book
value was nil.

REQUIRED

(b) Complete the table by placing a tick (3) to show whether these changes in expenses increase
or decrease the profit.

Expense Increase Decrease

in profit in profit
Heat and light

Depreciation

Insurance

[3]

Jules has discovered the following five errors in his accounting records for the year ended
30 April 2022.

1 The total for general expenses, $28, in the petty cash book for April 2022 has not been posted
to the general ledger.

2 A direct debit to Isaac, a supplier, $195 had been recorded as $159 in the account for Isaac.

3 A payment by credit transfer for wages, $144, has not been recorded in the accounting
records.

© UCLES 2022 0452/21/M/J/22

 11

4 The discount received total for January 2022, $38, had been debited to the discount received
account.

5 The account for rent and the account for commission receivable had both been overcast by
$200.

REQUIRED

(c) Prepare the journal entries required to correct these five errors. Narratives are not required.

Jules
Journal
Error Details Debit Credit
number $ $

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

............. ........................................................................... ..................... .....................

[10]

© UCLES 2022 0452/21/M/J/22 [Turn over

 12

(d) Prepare the suspense account. Include the original difference on the trial balance as a
balancing figure.

Jules
Suspense account
Date Details $ Date Details $

………. .……………………… ……….. ………. .……………………… ………..

………. .……………………… ……….. ………. .……………………… ………..

………. .……………………… ……….. ………. .……………………… ………..

………. .……………………… ……….. ………. .……………………… ………..

………. .……………………… ……….. ………. .……………………… ………..

………. .……………………… ……….. ………. .……………………… ………..

………. .……………………… ……….. ………. .……………………… ………..

[4]

[Total: 20]

© UCLES 2022 0452/21/M/J/22

 14

Demis has received a bank statement which shows that there were unpresented cheques of $437
at 31 December 2021. There were no outstanding lodgements.

REQUIRED

(b) Calculate the bank balance shown on the bank statement at 31 December 2021. Indicate
whether this balance is a debit or a credit balance.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [2]

Demis later discovered the following errors.

1 Drawings of goods for own use, $317, had been omitted from the books of account.

2 Purchases returns, $93, had been credited to the sales account.

3 A payment for property insurance, $500, had been debited to the property account.

4 A credit purchase, $315, from Erin, had been recorded as $135.

5 A credit sale, $191, to Harvinder, had been debited to the sales account and credited to
Harvinder’s account.

© UCLES 2022 0452/22/F/M/22

 15

REQUIRED

(c) Complete the following table to show the entries required to correct each error.

Entries required to correct the error

Error Debit Credit
Account $ Account $

1. Drawings of goods for own use,

$317, had been omitted from the
books of account. ................... .............. ................... ..............

2. Purchases returns, $93, had been

credited to the sales account. ................... .............. ................... ..............

3. A payment for property insurance,

$500, had been debited to the
property account. ................... .............. ................... ..............

4. A credit purchase, $315, from

Erin, had been recorded as $135. ................... .............. ................... ..............

5. A credit sale, $191, to Harvinder,

had been debited to the
sales account and credited to
Harvinder’s account. ................... .............. ................... ..............

[10]

(d) Identify the following error types from the table above.

(i) error 2

..................................................................................................................................... [1]

(ii) error 4

..................................................................................................................................... [1]

[Total: 20]

© UCLES 2022 0452/22/F/M/22 [Turn over