1

1 Ryk Shau is a sole trader who makes cardboard boxes. The following balances were
extracted from his books on 31 August 2021.

$
Sales 100 000
Purchases 70 000
Debtors/trade receivables 6 000
Creditors/trade payables 5 000
Cash at bank 5 000
Rent and insurance paid 4 000
Machinery at cost 50 000
Rent received 20 000
Stock 1 September 2020 11 000
Drawings 9 000
Capital ?

(a) Using the columns below, prepare Ryk’s trial balance as at 31 August 2001, showing
his Capital account balance.

Ryk Shau
Trial Balance as at 31 August 2021

DR CR
$ $

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[12]
 2

2 Pieter Burg is in business and buys goods from the General Supply Company. He received
the following invoice from them.

GENERAL SUPPLY COMPANY

SALES INVOICE

Pieter Burg 25 September 2015

Quantity Description Unit price $

(i) Bolt fastenings $0.40 1 200.00

1 000 Grommets $0.10 (ii)

TOTAL (iii)

Terms: 3% (iv) for payment within 14 days of invoice

(a) On the lines below, write the missing words or figures from the invoice.

(i) ............................................................. [1]

(ii) ............................................................. [1]

(iii) ............................................................. [1]

(iv) ............................................................. [1]

 3

Pieter had previously bought goods for $2 500 from the General Supply Company on
28 August, and this amount was unpaid at 31 August.

Pieter paid this amount on 5 September. He did not pay the September invoice until 30 October.

An extract from the payments side of Pieter’s cash book is shown below.

Date Details Discount Bank

received $
$

5 September General Supply Co

(i) (ii)

30 October General Supply Co

(iii) (iv)

(b) On the lines below, write the amounts missing from the cash book.

(i) ............................................................. [1]

(ii) ............................................................. [1]

(iii) ............................................................. [1]

(iv) ............................................................. [1]

(c) From the information in (a) and (b), show the entries in the General Supply Company’s
account in Pieter Burg’s purchases ledger for the months of September and October 2015.

General Supply Company account

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......................................................................................................................................[6]

[Total 14]
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3 Moloch has a furniture store and sells goods for cash and on credit. He puts the cash
receipts in his cash box and enters them into his three-column cash book each week. He
offers a cash discount of 2½% to his credit customers for payment within 15 days.

He buys inventory in bulk from a wholesaler for cash and receives trade discount of 4% for
orders in excess of $1500.

He pays staff wages each week in cash.

On 1 October 2011 Moloch’s cash book showed cash in hand of $650 and cash at bank of
$3200.

Moloch had the following transactions for the first week of October 2021. He writes up his
cash book and ledger each week.

October $
3 Cheque received from Justin for goods sold on 19 September 390

4 Sold goods on credit to Hercules 800

5 Paid cash to Andrews for goods purchased 2880

6 Cheque received from Munira for goods sold on 2 September 150

7 Cash sales for the week 3650

7 Wages paid for the week 630

REQUIRED

(a) Make the necessary entries in Moloch’s cash book on the following page to record the
above transactions for the week ended 7 October 2021.
 Moloch

Cash Book
Discount Discount
Date Details Cash Bank Date Details Cash Bank
Allowed Received
$ $ $ $ $ $
5

[8]

[Turn over
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(b) From the information given above, and the entries in the cash book, write up the
accounts in Moloch’s ledger below to record the transactions for the week.

Revenue (sales) account

Purchases account

Discount received account

Discount allowed account

Hercules account

Justin account

Munira account

[9]
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4 (a) State the accounting equation.

[1]

Samir started a business on 1 January. The following transactions took place.

1 Samir paid $10 000 of his own money into the business bank account.

2 He transferred his own vehicle to the business at a valuation of $6500.

3 He bought goods for resale, $2000, on credit from Zed.

4 He paid rent, $3000, by cheque.

REQUIRED

(b) Complete the following table showing how these transactions were recorded in Samir’s
books of account. The first has been completed as an example.

Transaction Debit entry Credit entry

$ $

1 Bank account 10 000 Capital account 10 000

4
[6]

(c) Explain why there could be a credit balance on a bank account but not on the cash account.

[2]
 8

5 (a) Give the name of each document described below.

1 a document sent to a customer with details of goods supplied on credit

2 a document informing a supplier of overcharges or shortages

3 a summary of a customer’s transactions for a month

[3]

(b) (i) State on which side of the cash book discount allowed appears.

(ii) Name which type of discount this is.

(iii) Explain why this discount is given.

[3]

[Turn over
 9

Vikram maintains a cash book with columns for bank and cash.

The following transactions take place.

1 Vikram sells goods, $300, on credit to Hal

2 Hal pays the debt in full in cash
3 Vikram pays $250 of the cash into the bank
4 Vikram writes a cheque for $400 for his own use
5 $600 is received from Mabel, a debtor/trade receivable, by credit transfer

REQUIRED

(c) Complete the table below showing how these transactions are recorded in Vikram’s books.
The first has been completed as an example.

Debit entry Credit entry

$ $

1 Hal account 300 Sales account 300

5
[8]

(d) State which transaction in (c) is known as a contra.

[1]
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6 Carol is a trader. She maintains a three column cash book and also a petty cash book. The imprest
amount is $100. All payments below $50 are made from petty cash.

REQUIRED

(a) State two reasons for maintaining a petty cash book.

1 ................................................................................................................................................

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

2 ................................................................................................................................................

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

Carol had the following transactions during April 2016.

April 1 Petty cash imprest restored from the business bank account.

4 Purchased tea and coffee for office staff, $11.

9 Paid K Mzolo’s account of $450, by cheque, after deducting a cash discount of 2%.

16 Bought stationery, $25.

19 Paid taxi fare, $8.

20 Received a cheque from B Mamba in settlement of his account of $920, less 2½%
cash discount.

23 Paid T Nhete, a credit supplier, $38.

28 Cash sales, $2970.

29 Paid all the cash in the main cash account, except $100, into the bank account.

REQUIRED

(b) Record the above transactions in the following books which appear on pages 3 and 4.

(i) Petty cash book [9]

(ii) Three column cash book [10]

Balance each book and bring down the balances on 1 May 2016.
[Total: 21]
 (i) Carol
Petty Cash Book

Total Date Details Total Postage & General Ledger

received paid stationery expenses accounts
$ $ $ $ $
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[Turn over
 (ii) Carol
Cash Book

Date Details Discount Cash Bank Date Details Discount Cash Bank
allowed received
$ $ $ $ $ $

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