Question Tag: Books of Prime Entry
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- 20 Marks
FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations
Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.
Question
a) The transactions below relate to Affram Ltd for the year ended 30 April 2022:
1 May 2021 balance b/d:
| Account | GHȼ |
|---|---|
| Sales Ledger Control Account | 180,000 Dr |
Totals for the year 1 May 2021 to 30 April 2022:
| Item | Amount (GHȼ) |
|---|---|
| Credit sales | 600,500 |
| Receipts from customers | 690,100 |
| Discount allowed | 12,000 |
| Irrecoverable debts | 5,400 |
| Sales returns | 4,600 |
| Dishonoured cheques from customers | 3,000 |
| Contras between sales and purchases | 14,000 |
The Sales Ledger Control Account balance failed to agree with the total receivables of GHȼ67,800 as shown by the Schedule of Receivables.
The following errors were subsequently discovered:
- The discount allowed total in the Cash Book had been overstated by GHȼ400.
- The total of sales in the Sales Journal had been understated by GHȼ3,000.
- A cheque received from a customer for GHȼ2,000, correctly processed through the books, had subsequently been dishonoured. This item had been correctly dealt with in the customer’s account, but no other entry has yet been made.
- Goods costing GHȼ5,000 had been returned by a customer. The transaction had been correctly recorded in the Sales Ledger Control Account, but this has not been entered in the customer’s account.
- Papa Yaw, a customer, has been declared bankrupt and his debt of GHȼ1,500 is to be written off. No entries have yet been made.
Required:
i) Prepare the Receivables Control Account for the year ended 30 April 2022. (8 marks)
ii) Prepare a statement reconciling the corrected balance on the Receivables Control Account with the corrected balance on the Schedule of Receivables. (3 marks)
b) Book-keeping is the process of recording financial transactions in the accounting records (the books) of an entity. Transactions are initially recorded in books of prime entry also known as books of original entry.
Required:
Identify SIX (6) books of prime entry and their functions. (9 marks)
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- 20 Marks
FA – Nov 2015 – L1 – Q4 – Preparation of Partnership accounts
Define Books of Prime Entry and list examples, prepare partnership accounts including profit/loss, partners' current accounts, and statement of financial position.
Question
(a)
i. Define Book of Prime Entry. (1 mark)
ii. Mention any four (4) Books of Prime Entry. (4 marks)
(b) Felicia, Jackson, and Elizabeth are in Partnership Sharing Profits and Losses in the ratio of 5:3:2 respectively. According to the Partnership Agreement, Partners’ Capital Accounts attract an interest of 20% per annum, while any Drawings by a Partner also attract 10% interest per annum.
The following understated Trial Balance has been extracted after the preparation of the Profit and Loss Account for the period ending 31st December 2014:
The following entries have not been recorded in the books:
i. Salary of GH¢5,000 was paid to Elizabeth during the period.
ii. Felicia personally paid General Expenses of GH¢2,500 on behalf of the Partnership.
iii. Cash Drawings made by partners: Felicia GH¢500, Jackson GH¢1,500, and Elizabeth GH¢1,200.
iv. Interest on loan – Elizabeth – GH¢2,000.
v. Jackson took goods worth GH¢2,000 for personal use.
vi. Interest on Capital Account. All Capital Accounts were to remain fixed.
You are required to prepare:
i. Profit or Loss and Appropriation Account. (7 marks)
ii. Partners’ Current Account. (3 marks)
iii. Statement of Financial Position as at 31st December, 2014 (5 marks)
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- 20 Marks
FA – July 2023 – L1 – Q3 – Control accounts and account reconciliations
Prepare a receivables control account and reconcile it with the schedule of receivables. Identify and explain six books of prime entry.
Question
a) The transactions below relate to Affram Ltd for the year ended 30 April 2022:
1 May 2021 balance b/d:
| Account | GHȼ |
|---|---|
| Sales Ledger Control Account | 180,000 Dr |
Totals for the year 1 May 2021 to 30 April 2022:
| Item | Amount (GHȼ) |
|---|---|
| Credit sales | 600,500 |
| Receipts from customers | 690,100 |
| Discount allowed | 12,000 |
| Irrecoverable debts | 5,400 |
| Sales returns | 4,600 |
| Dishonoured cheques from customers | 3,000 |
| Contras between sales and purchases | 14,000 |
The Sales Ledger Control Account balance failed to agree with the total receivables of GHȼ67,800 as shown by the Schedule of Receivables.
The following errors were subsequently discovered:
- The discount allowed total in the Cash Book had been overstated by GHȼ400.
- The total of sales in the Sales Journal had been understated by GHȼ3,000.
- A cheque received from a customer for GHȼ2,000, correctly processed through the books, had subsequently been dishonoured. This item had been correctly dealt with in the customer’s account, but no other entry has yet been made.
- Goods costing GHȼ5,000 had been returned by a customer. The transaction had been correctly recorded in the Sales Ledger Control Account, but this has not been entered in the customer’s account.
- Papa Yaw, a customer, has been declared bankrupt and his debt of GHȼ1,500 is to be written off. No entries have yet been made.
Required:
i) Prepare the Receivables Control Account for the year ended 30 April 2022. (8 marks)
ii) Prepare a statement reconciling the corrected balance on the Receivables Control Account with the corrected balance on the Schedule of Receivables. (3 marks)
b) Book-keeping is the process of recording financial transactions in the accounting records (the books) of an entity. Transactions are initially recorded in books of prime entry also known as books of original entry.
Required:
Identify SIX (6) books of prime entry and their functions. (9 marks)
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- 20 Marks
FA – Nov 2015 – L1 – Q4 – Preparation of Partnership accounts
Define Books of Prime Entry and list examples, prepare partnership accounts including profit/loss, partners' current accounts, and statement of financial position.
Question
(a)
i. Define Book of Prime Entry. (1 mark)
ii. Mention any four (4) Books of Prime Entry. (4 marks)
(b) Felicia, Jackson, and Elizabeth are in Partnership Sharing Profits and Losses in the ratio of 5:3:2 respectively. According to the Partnership Agreement, Partners’ Capital Accounts attract an interest of 20% per annum, while any Drawings by a Partner also attract 10% interest per annum.
The following understated Trial Balance has been extracted after the preparation of the Profit and Loss Account for the period ending 31st December 2014:
The following entries have not been recorded in the books:
i. Salary of GH¢5,000 was paid to Elizabeth during the period.
ii. Felicia personally paid General Expenses of GH¢2,500 on behalf of the Partnership.
iii. Cash Drawings made by partners: Felicia GH¢500, Jackson GH¢1,500, and Elizabeth GH¢1,200.
iv. Interest on loan – Elizabeth – GH¢2,000.
v. Jackson took goods worth GH¢2,000 for personal use.
vi. Interest on Capital Account. All Capital Accounts were to remain fixed.
You are required to prepare:
i. Profit or Loss and Appropriation Account. (7 marks)
ii. Partners’ Current Account. (3 marks)
iii. Statement of Financial Position as at 31st December, 2014 (5 marks)
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