May/June 2021

Which statements about book-keeping and accounting are correct?

Accounting principles

Javid’s sales ledger control account recorded a debit balance of $12\,000$. The interest on an overdue account, $40$, together with discount allowed, $150$, had not been included. What is the correct balance for the sales ledger control account?

Control accounts

What happens if an item of capital expenditure is treated as revenue expenditure?

Capital and revenue expenditure and receipts

Why does a business make provision for depreciation on non-current assets?

Accounting for depreciation and disposal of non-current assets

Machinery that had originally cost $6\,290$ was disposed of for $3\,100$. The disposal account indicated a profit on disposal of $584$. What amount of depreciation had been charged up to the disposal date, and on which side of the disposal account was it entered?

Accounting for depreciation and disposal of non-current assets

The ledger account shown below was recorded in the records of a trader. Rent receivable account: 2020 Dec 31 balance c/d $600$ 2020 Jan 1 balance b/d $400$ 2020 Dec 31 bank $3\,600$ Which item was entered in the income statement for the year ended 31 December 2020 for rent receivable?

Other payables and other receivables

Why does a business keep a provision for doubtful debts account?

Irrecoverable debts and provision for doubtful debts

In what way should inventory be valued?

Valuation of inventory

What benefits come with operating as a sole trader?

Sole traders

Which items would be shown in the income statement for a service business?

Sole traders

A business supplied the information below. Long-term loan $\$20000$, trade receivables $\$12000$, trade payables $\$9700$, bank overdraft $\$2000$, prepaid insurance $\$400$, accrued wages $\$1000$, rent receivable prepaid $\$500$. What is the total for the current liabilities?

Other payables and other receivables

What causes the owner’s capital to increase?

Sole traders

What amount is added to the owner’s capital in order to calculate capital employed?

Calculation and understanding of accounting ratios

As at $1$ April $2020$, Ahmed’s provision for doubtful debts was $\$290$. On $31$ March $2021$, the journal entry below was posted: Provision for doubtful debts debit $\$25$, income statement credit $\$25$. What amount of provision for doubtful debts was deducted from trade receivables in Ahmed’s statement of financial position on $31$ March $2021$?

Irrecoverable debts and provision for doubtful debts

At the beginning of the year, X Limited had ordinary share capital of $\$100000$. During the year, an ordinary share dividend of $\$3000$ was paid. After that, another $\$10000$ of ordinary shares were issued. The profit for the year came to $\$8000$. By how much had equity risen by the end of the year?

Limited companies

Which sources of finance for a limited liability company earn a fixed return on the money they invest?

Limited companies

All members of a sports club have to pay an annual subscription of $\$50$. The subscriptions account gave the following details. What was the rise in the number of members in arrears between $1$ January and $31$ December $2020$?

Clubs and societies

Which term describes the surpluses that a club has accumulated throughout its lifetime?

Clubs and societies

For the year ending $31$ March $2021$, Nula gave the information below. Drawings in the year $\$3900$, net assets on $1$ April $2020$ $\$60500$, net assets on $31$ March $2021$ $\$72275$. What was the profit or loss for the year ending $31$ March $2021$?

Sole traders

A trader who did not keep complete accounting records was able to provide the information below. Trade receivables owed on $1$ April $2020$ were $\$3000$, cheques collected from trade receivables during the year were $\$28000$, cash discounts allowed to trade receivables were $\$1500$, and trade receivables owed on $31$ March $2021$ were $\$4200$. What were the credit sales for the year ended $31$ March $2021$?

Incomplete records

A trader supplied the information below. Revenue: $\$120\,000$ Inventory at the beginning of the year: $\$9\,600$ Inventory at the end of the year: $\$10\,200$ A mark-up of $25\%$ is used. What were the purchases for the year?

Valuation of inventory

George gave the information below. Non-current assets: $\$15\,000$ Inventory: $\$12\,000$ Trade receivables: $\$18\,000$ Trade payables: $\$8\,000$ His liquid (acid test) ratio came to $1.2 : 1$. What was the amount of his bank overdraft?

Calculation and understanding of accounting ratios

Carl, a trader, withdrew goods from the business for his own personal use. The goods cost $100$, and $8$ carriage had been paid to have them delivered to the business. How should this be entered in Carl’s accounts in the books of the business?

Sole traders

A trader supplied the details shown below. Revenue: $\$3\,600$ Opening inventory: $\$100$ Purchases: $\$2\,600$ Closing inventory: $\$300$ Gross profit: $\$1\,200$ It was discovered that the closing inventory ought to have been $\$400$. Calculate the correct rate of inventory turnover.

Calculation and understanding of accounting ratios

X has a current ratio of $2 : 1$. Y has a current ratio of $1.3 : 1$. What does this comparison of the ratios indicate?

Interpretation of accounting ratios

Which external parties would have an interest in a trader’s financial statements?

Interested parties

Sabeena operates a retail business and intends to shut it down in a few weeks. In the statement of financial position, how ought her fixtures and fittings to be valued?

Accounting for depreciation and disposal of non-current assets

Why is it necessary for a trader to match the costs of a financial year with the revenues earned in that same period?

Accounting principles

Which international accounting objectives are being referred to in the statements below?

Accounting principles

Shula’s financial year concludes on 31 March. On 1 April 2021, Yasmin’s account in Shula’s purchases ledger showed a credit balance of $100$. What does this mean?

Other payables and other receivables

Hasina purchases radios from Nazneen at a list price of $10$ each. She bought $12$ radios and received $20\%$ trade discount and $4\%$ cash discount. Two radios were defective and returned to Nazneen. Calculate the total amount shown on the credit note issued by Nazneen?

Business documents

Which transactions would be entered in the general journal of a bakery?

Books of prime entry

Alisha recorded the credit notes she obtained in March in the appropriate returns journal. By the end of the month, how was the total from this journal posted in the ledger?

Books of prime entry

Which item would not be recorded on a bank statement?

Bank reconciliation

Which of the following statements about a purchases ledger control account is not correct?

Control accounts

Which statements concerning book-keeping and accounting are correct?

Accounting principles

Which error is classed as an error of original entry?

Correction of errors

A cheque for $85 from Shakeel was posted to Shamz’s account. Which journal entry would rectify this error?

Correction of errors

Jamal’s bank statement on 1 May 2021 indicated a bank overdraft of $1460. On that date, cheques worth $385 had not yet been presented and deposits of $255 had not yet been credited. What was the cash book balance on 1 May 2021?

Bank reconciliation

What items are contained in a purchases ledger control account?

Control accounts

Javid’s sales ledger control account showed a debit balance of $12\,000. Interest on an overdue account, $40, and discount allowed, $150, had not been included. What should the correct balance on the sales ledger control account be?

Control accounts

Which statements concerning capital expenditure are correct?

Capital and revenue expenditure and receipts

Nia disposed of equipment with a net book value of $200. The sale proceeds, $250, were entered as a credit in the sales account and as a debit in the cash book. What was the impact of this error on Nia’s gross profit and profit for the year?

Correction of errors

Why does a business make an allowance for depreciation on non-current assets?

Accounting for depreciation and disposal of non-current assets

A machine whose original cost was $10\,000 was depreciated over two years at $10\%$ per annum on the straight-line basis. It was then sold for cash, and the loss on disposal was $700. On the same day, a replacement machine was purchased for $12\,400 cash. What was the net fall in the cash balance?

Accounting for depreciation and disposal of non-current assets

Why might a bakery business leave out a value for stationery inventory in the statement of financial position?

Valuation of inventory

What causes the owner’s capital to increase?

Sole traders

Shilpa’s financial year finishes on 30 April. On 31 March 2021, she wrote off a debt owed by Tahir as irrecoverable. Which journal entry was recorded by Shilpa on 31 March 2021?

Irrecoverable debts and provision for doubtful debts

In what way should inventory be valued?

Valuation of inventory

James works as an accountant and runs his own business as a sole trader. Which of these would not be included in his statement of financial position?

Sole traders

Zaha works as a consultant and earns fees from clients. How would Zaha work out his profit for the year?

Sole traders

What must be added to owner’s capital in order to calculate capital employed?

Calculation and understanding of accounting ratios

What is one advantage of setting up a partnership?

Partnerships

Ann and Ben are partners and divide profits and losses equally. They were given the following figures for the year ending 30 April 2021: profit for the year $20\,000$ interest on capital: Ann $5\,000$, Ben $4\,000$ drawings: Ann $8\,000$, Ben $7\,000$ What amount of residual profit was Ben entitled to?

Partnerships

Which of the following statements about a receipts and payments account is incorrect?

Clubs and societies

In what way does a manufacturer calculate prime cost?

Manufacturing accounts

Nula gave the following figures for the year ended 31 March 2021: drawings during the year $3\,900$ net assets on 1 April 2020 $60\,500$ net assets on 31 March 2021 $72\,275$ What profit or loss was made for the year ended 31 March 2021?

Sole traders

William gave Sonia $500 in cash as rent. How would Sonia record this?

Books of prime entry

A trader gave the information below: cost of sales $80\,000$ expenses $4\,000$ profit for the year $16\,000$ What is the profit margin?

Calculation and understanding of accounting ratios

A trader gave the following figures. Revenue: $3600$ Opening inventory: $100$ Purchases: $2600$ Closing inventory: $300$ Gross profit: $1200$ It was discovered that the closing inventory ought to have been $400$. What was the correct rate of inventory turnover?

Calculation and understanding of accounting ratios

Sally’s business has already used up the bank overdraft limit of $1500$ and cannot settle its debts when they become due. Sally is thinking about these proposals. 1. requesting the bank to raise the bank overdraft limit to $2000$ 2. taking $2000$ from a relative as a loan and repaying it after six months 3. arranging a bank loan of $2000$ to be repaid in two years 4. transferring $2000$ from Sally’s personal bank account into the business bank account Which proposals would increase the working capital of the business?

Calculation and understanding of accounting ratios

The following information was given for Company X and Company Y. Gross margin: Company X: $36.7\%$ Company Y: $42.6\%$ Profit margin: Company X: $5.4\%$ Company Y: $5.4\%$ Which statement is correct?

Interpretation of accounting ratios

X has a current ratio of $2 : 1$. Y has a current ratio of $1.3 : 1$. What does comparing these ratios reveal?

Interpretation of accounting ratios

Which international accounting objectives are referred to by the following statements? 1. Information shown in financial statements must be free from material error and bias. 2. Users must be able to recognise differences and similarities between information in different financial statements.

Accounting principles

Abdul purchases all of his machinery on credit. He gave the following details. In the year, Abdul paid $25000 to the suppliers of his machinery. What amount did he still owe them on 30 April 2021?

Other payables and other receivables

Shula’s financial year finishes on 31 March. On 1 April 2021, Yasmin’s account in Shula’s purchases ledger showed a credit balance of $100. What is the meaning of this?

Other payables and other receivables

Hasina purchases radios from Nazneen at a catalogue price of $10 each. She bought 12 radios and received a 20% trade discount and a 4% cash discount. Two radios were defective and were sent back to Nazneen. What was the total amount shown on the credit note issued by Nazneen?

Business documents

Jameel sold goods on credit. In which book did he make the first record of the invoice he issued?

Books of prime entry

Which statements about a three-column cash book are correct?

Books of prime entry

Which statement about a trial balance is not true?

The trial balance

Which of the following statements about book-keeping and accounting are correct?

Accounting principles

Which mistake is classed as an error of original entry?

Correction of errors

A cheque for $85, received from Shakeel, was entered on the credit side of Shamz’s account. Which journal entry would rectify this error?

Correction of errors

At 1 May 2021, Jamal’s bank statement recorded a bank overdraft of $1460. On that date, there were unpresented cheques totaling $385 and uncredited deposits totaling $255. What was the balance in the cash book on 1 May 2021?

Bank reconciliation

What items are recorded in a purchases ledger control account?

Control accounts

Javid’s sales ledger control account showed a debit balance of $12000. Interest on an overdue account, $40, and discount allowed, $150, had not been included. What was the correct balance on the sales ledger control account?

Control accounts

Which statements concerning capital expenditure are correct?

Capital and revenue expenditure and receipts

Nia disposed of equipment whose net book value was $200. The sale proceeds, $250, were entered as a credit in the sales account and as a debit in the cash book. What effect did this error have on Nia’s gross profit and profit for the year?

Correction of errors

Why do businesses make an allowance for the depreciation of non-current assets?

Accounting for depreciation and disposal of non-current assets

A machine that originally cost $10000 had its value reduced for two years at 10% per annum on the straight-line basis. It was then sold for cash, with the loss on disposal equal to $700. On the same day, a replacement machine was purchased for $12400 in cash. What was the net fall in the cash balance?

Accounting for depreciation and disposal of non-current assets

Why might a bakery business exclude any value for stationery inventory from the statement of financial position?

Valuation of inventory

What causes owner’s capital to rise?

Sole traders

Shilpa’s financial year finishes on 30 April. On 31 March 2021, she treated a debt owed by Tahir as irrecoverable and wrote it off. Which accounting entry was recorded by Shilpa on 31 March 2021?

Irrecoverable debts and provision for doubtful debts

In what way ought inventory to be valued?

Valuation of inventory

James works as an accountant and is a sole trader. Which items would not be shown in his statement of financial position?

Sole traders

Zaha is a consultant who earns fees from clients. How would Zaha work out his profit for the year?

Sole traders

What must be added to owner’s capital to work out capital employed?

Calculation and understanding of accounting ratios

What is one benefit of setting up a partnership?

Partnerships

Ann and Ben operate a partnership and divide profits and losses equally. They supplied the following information for the year ended 30 April 2021. What was Ben’s portion of the residual profit?

Partnerships

Which of the following statements concerning a receipts and payments account is incorrect?

Clubs and societies

How is prime cost worked out by a manufacturer?

Manufacturing accounts

Nula gave the information below for the year ended 31 March 2021. What was the profit or loss for the year ended 31 March 2021?

Sole traders

William paid $500 in cash to Sonia as rent. How would Sonia record this?

Books of prime entry

A trader supplied the following information. What was the profit margin?

Calculation and understanding of accounting ratios

The following details were given by a trader. Revenue: $3600$ Opening inventory: $100$ Purchases: $2600$ Closing inventory: $300$ Gross profit: $1200$ It was then discovered that the closing inventory ought to have been $400$. What is the correct rate of inventory turnover?

Calculation and understanding of accounting ratios

Sally’s business has already used up the bank overdraft limit of $1500$ and cannot settle its debts as they become due. Sally is thinking about these options. 1. requesting that the bank raises the overdraft limit to $2000$ 2. taking $2000$ from a relative and repaying it in six months 3. getting a $2000$ loan from the bank that is repayable in two years 4. transferring $2000$ from Sally’s personal bank account into the business bank account Which of these options would increase the business’s working capital?

Sole traders

Company X and Company Y gave the following data. Gross margin: Company X: $36.7\%$ Company Y: $42.6\%$ Profit margin: Company X: $5.4\%$ Company Y: $5.4\%$ Which statement is correct?

Interpretation of accounting ratios

X has a current ratio of $2:1$ while Y has a current ratio of $1.3:1$. What does comparing these ratios reveal?

Interpretation of accounting ratios

Which international accounting objectives are being referred to by these statements? 1. Information shown in financial statements has to be free from material error and bias. 2. Users must be able to recognise similarities and differences between information in different financial statements.

Accounting principles

Abdul acquires all of his machinery on credit. He gave the following details: On 30 April 2020: machinery at cost $30000; amounts owed to suppliers of machinery $19000. On 30 April 2021: machinery at cost $42000; amounts owed to suppliers of machinery $?. Over the year Abdul paid $25000 to the suppliers of his machinery. How much was still owed to them on 30 April 2021?

Other payables and other receivables

Shula’s financial year finishes on 31 March. On 1 April 2021, Yasmin’s account in Shula’s purchases ledger showed a credit balance of $100. What is meant by this?

Other payables and other receivables

Hasina purchases radios from Nazneen at a list price of $10 each. She ordered 12 radios and received a 20% trade discount and a 4% cash discount. Two radios were defective and were sent back to Nazneen. What was the total value of the credit note that Nazneen issued?

Business documents

Jameel made a credit sale. In which book did he first enter the invoice he sent out?

Books of prime entry

Which of the following statements about a three-column cash book are correct?

Books of prime entry

Which statement is incorrect about a trial balance?

The trial balance

Rahat works as a trader. These transactions occurred during March 2021. March 3 Cash sales, $580$, were paid straight into Rahat’s business bank account March 6 Insurance, $360$, was paid by direct debit March 9 $196$ was paid to GH Limited by telephone transfer, after deducting 2% cash discount from the amount due March 13 $75$ cash was paid for stationery March 17 Cash sales, $140$ March 27 Old office equipment was sold to Burgess, who paid $50$ by cheque in full settlement March 30 $340$ was paid to Colin by cheque in full settlement of a debt of $350$

Bank reconciliation

John and Banu operate as partners. The partners supplied the following balances at 31 March 2021. Revenue $158000 Inventory at 1 April 2020 $9400 Purchases $69200 Rates and insurance $11250 Wages $10475 General expenses $9675 Discount allowed $2000 Commission receivable $4800 Balance at bank $4000 Trade receivables $14150 Trade payables $5835 Premises at cost $130000 Fittings at cost $18000 Provision for depreciation of fittings $8100 Loan from John $10000 Capital accounts: John $75000, Banu $50000 Current accounts: John $4050, Banu $2365 Drawings: John $19000, Banu $21000 Additional information 1 Inventory at 31 March 2021 was measured at $9200. 2 Rates of $650 were unpaid at 31 March 2021. 3 Commission receivable of $300 was due at 31 March 2021. 4 Depreciation on fittings is to be charged at 15% per annum using the straight-line method. 5 The partnership agreement provides for: interest on partner’s loan of 5% per annum interest on drawings of 6% interest on capital of 3% per annum a salary to John of $8500 per annum residual profits and losses to be shared 40% to John and 60% to Banu.

Partnerships

TC Limited operates in manufacturing. Its financial year ends on 31 January. As at 31 January 2021, the balances in the ledger accounts were as follows. Inventory at 1 February 2020: Raw materials $7500 Work in progress $11220 Finished goods $925 Purchases: Raw materials $91400, Finished goods $6850 Wages: Factory operatives $52000, Factory supervisor $23100 Rent and rates $19620 Insurance $4600 General factory expenses $4200 Carriage inwards on raw materials $6280 Factory equipment at cost $90000 Provision for depreciation of factory equipment $30960 Additional information 1 Inventory at 31 January 2021: Raw materials $8000, Work in progress $11900, Finished goods $1075 2 Factory equipment is to be depreciated at 20% per annum using the reducing balance method. 3 In December 2020, $3600 was paid for rent for the period 1 December 2020 to 28 February 2021. 4 At 31 January 2021 rates of $550 were unpaid. 5 Rent and rates are to be shared equally between the factory and the office. 6 Insurance is to be split 75% to the factory and 25% to the office.

Manufacturing accounts

Neith trades goods. Her financial year finishes on 31 March. Neith drew up the trial balance below, but it contains some mistakes. Neith Trial Balance as at 31 March 2021 Fixtures and equipment at cost Debit $300000 Provision for depreciation of fixtures and equipment Credit $120000 Inventory Credit $9100 Trade receivables Credit $16100 Provision for doubtful debts Debit $322 Petty cash Debit $100 Bank overdraft Debit $11400 Trade payables Credit $3200 Capital at 1 April 2020 Credit $160000 Sales Credit $107498 Purchases Debit $41520 Rent and rates Debit $16000 Office expenses Debit $9000 General expenses Debit $8150 Suspense Credit $210594 Totals Debit $506492 Credit $506492 Additional information 1 The inventory figure at 31 March 2021 was already included in the trial balance. On 1 April 2020, inventory was valued at $8800. 2 On 30 March 2021, a motor vehicle was sold at its book value, $2750. The disposal was entered correctly, but no entry was made in the purchaser's account. The purchaser was due to settle the amount on 30 April 2021.

Correction of errors

Omer trades as a trader. He supplied the following details. For the year ended 30 April 2021 Credit sales $191000 Credit purchases $120000 Gross profit $80220 Commission receivable $20280 Expenses $29830 At 30 April 2021 Trade receivables $12400 Trade payables $7000

Calculation and understanding of accounting ratios

Leo keeps a petty cash book by using the imprest system. The imprest amount, which is $200, is replenished on the first day of every month. Any payment of less than $100 is made from petty cash. Any cash receipt of less than $100 is paid into petty cash. On 1 April 2021, Leo had $48 in his petty cash box. Leo gave the following details for April 2021. April 1 Replenished petty cash imprest from the business bank account April 5 Paid for office cleaning, $21 April 7 Paid for train ticket, $13 April 13 Paid $72 to Hunter, a trade payable April 18 Paid taxi fare, $14 April 25 Received cash, $11, from Conrad, a trade receivable

Books of prime entry

Tej trades in goods on credit. His accounting year ends on 28 February. Tej gave the information below. At 1 March 2020 Trade receivables $6250 Other receivables (rent prepaid) $300 For the year ended 28 February 2021 Rent charge for the year $3900 Cheque payments for rent 30 June 2020 $1950 30 November 2020 $2100 At 28 February 2021 Trade receivables $7000 The provision for doubtful debts stood at 4% of trade receivables at 1 March 2020 and 6% of trade receivables at 28 February 2021.

Irrecoverable debts and provision for doubtful debts

The trial balance for HV Limited as at 31 March 2021 was presented as follows. HV Limited Trial Balance at 31 March 2021 Debit and credit balances shown. Additional information 1 Inventory at 31 March 2021 had a value of $6090. 2 Fittings are to be depreciated at 20% per annum by the reducing balance method. 3 Rent contains a payment of $1800 covering the 3 months from 1 March 2021 to 31 May 2021. 4 Wages accrued at 31 March 2021 amounted to $2250. 5 No debenture interest was paid for the year ended 31 March 2021. 6 There were no dividends outstanding at 31 March 2021. 7 $2000 is to be moved to a general reserve on 31 March 2021.

Limited companies

RIA Music Club owns its own premises, which include a shop and several music rooms. Shop sales are paid for in cash and shop purchases are made on credit. Mark-up is 20%. The treasurer has supplied the information below.

Clubs and societies

Kia is a trader. The trial balance totals compiled on 30 April 2021 failed to agree, so the difference was entered into a suspense account. Kia subsequently found the errors listed in the table in part (a).

Correction of errors

Leo keeps a petty cash book under the imprest system. The imprest total, which is $200, is topped up on the first day of every month. Any cash payment of less than $100 is taken from petty cash. Any cash receipt of less than $100 is paid into petty cash. On 1 April 2021 Leo had $48 in his petty cash box. Leo supplied the following details for April 2021. April 1 Replenished petty cash imprest from the business bank account April 5 Paid for office cleaning, $21 April 7 Paid for train ticket, $13 April 13 Paid $72 to Hunter, a trade payable April 18 Paid taxi fare, $14 April 25 Received cash, $11, from Conrad, a trade receivable

Books of prime entry

Tej is a trader who sells goods on credit. His year end is 28 February. Tej gave the following details. At 1 March 2020 Trade receivables $6250 Other receivables (rent prepaid) $300 For the year ended 28 February 2021 Rent charge for the year $3900 Cheque payments for rent: 30 June 2020 $1950, 30 November 2020 $2100 At 28 February 2021 Trade receivables $7000 The provision for doubtful debts was 4% of trade receivables at 1 March 2020 and 6% of trade receivables at 28 February 2021.

Irrecoverable debts and provision for doubtful debts

At 31 March 2021, the trial balance of HV Limited was presented as follows. HV Limited Trial Balance as at 31 March 2021 Debit ($): Inventory at 1 April 2020 5820; Purchases 64900; Rent and insurance 9280; Wages 24750; Operating expenses 8500; Fittings at cost 200000; Trade receivables 12500; Bank 13765; Dividend paid on ordinary shares 5600. Credit ($): Revenue 145000; Provision for depreciation of fittings 72000; Trade payables 6615; 4% Debentures (repayable 1 April 2031) 30000; Ordinary share capital 70000; Retained earnings 21500. Totals: Debit **345115**, Credit **345115**. Further information: 1 Inventory at 31 March 2021 was valued at $6090. 2 Depreciation on fittings is to be charged at 20% per annum using the reducing balance method. 3 Rent includes a payment of $1800 for the 3 months from 1 March 2021 to 31 May 2021. 4 Accrued wages at 31 March 2021 were $2250. 5 No debenture interest has been paid for the year ended 31 March 2021. 6 No dividends were outstanding at 31 March 2021. 7 $2000 is to be transferred to a general reserve on 31 March 2021.

Limited companies

RIA Music Club owns the premises, which include a shop and several music rooms. Shop sales are made for cash, while shop purchases are bought on credit. Mark-up is 20%. The treasurer supplied the following data. Figures at 1 January 2020 and 31 December 2020: Subscriptions in advance: $1200 / $1050 Subscriptions in arrears: $5215 / $5830 Total shop trade payables: $4275 / $4990 Shop inventory: $2500 / $2500 Balance at bank: $240 / $110 For the year ended 31 December 2020: Subscriptions received $36700 Shop purchases $34200 Shop purchases returns $1710 Interest charged on overdue shop trade payables accounts $200

Clubs and societies

Kia is a trader. The totals on the trial balance drawn up on 30 April 2021 did not match, so the difference was entered in a suspense account. Kia later identified the errors listed in the table in part (a).

Correction of errors