atswa pilot questions answers part i - The Institute of Chartered ...

QUESTION 4
31/12/10 Balance c/d 220,000 1/01/10 Balance b/d 120,000
31/12/10 P & L account* 100,000
220,000 220,000
01/01/11 Disposal a/c 160,000 01/01/11 Balance b/d 220,000
31/12/11 Balance c/d 120,000 31/12/11 P & L account 60,000
280,000 280,000
01/01/12 Balance b/d 120,000 (4 Marks)
*Provision for depreciation in 2010 = cedi 500,000 x 20% = cedi 100,000
(Total 12½ Marks)
a) The following are extracts from the records of Abu Bako for the month of December, 2010:
$
Debit balance in Sales Ledger 12,500
Debit balance in Bought Ledger 350
Credit balance in Sales Ledger 400
Credit balance in Bought Ledger 10,000
Total Credit Purchases 18,500
Total Credit Sales 50,000
Transactions for the month
Sales return and allowances 260
Purchase return and allowances 230
Cash received from Debtors 8,500
Cash paid to Creditors 6,000
Cheque received from Debtors 2,000
Discount received from Creditors 130
Discount allowed to Customers 420
Bad debt written off 60
Provision for doubtful debts 300
Bill accepted by Debtors 2,300
Dishonoured Bill Payable 213
Cash Purchases 5,000
Debit balance in Bought Ledger 750
Credit balance in Sales Ledger 235
You are required to prepare the Sales Ledger and Bought Ledger Control accounts of Abu Bako
for the month of December, 2010.
(8½ Marks)
b. Small items of expenditure in any office are recognised in a special cash
book called Petty cash book. List FOUR merits of using a Petty Cash Book.
(4 Marks)
(Total 12½ Marks)
14