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 $350$
(a)[11]
Fill in Rahat’s cash book on the facing page. Then balance the cash book and carry the balances down on 1 April 2021.
(b)[4]
Put a tick (✓) in the correct column to show whether each item would be used to update the cash book or would appear in the bank reconciliation statement.
(c)[5]
Advise Rahat whether she should apply for the bank loan. Support your answer with two advantages and two disadvantages.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.