Peter works as a trader. The transactions below occurred in April 2022.
April 2 Cash sales, $410, were paid directly into the bank account
April 3 By cheque, $798 was paid to Rahat in full settlement of a debt of $840
April 8 $42 cash was paid for a motor vehicle repair
April 15 Goods with a list price of $320 were bought on credit from Rahat, subject to a trade discount of 10%
April 18 Cash sales, $460
April 20 $392 was paid to Samir by telephone transfer after a 2% cash discount had been deducted from the amount due
April 25 A cheque for commission receivable, $115, was paid into the bank account
April 29 $285 was paid to Rafael in cash in full settlement of a debt of $300
(a)[11]
Prepare Peter’s cash book on the facing page. Balance the cash book, then carry the balances down on 1 May 2022.
(b)[5]
Use a tick (✓) to indicate how each item in the table below would be treated when preparing the bank reconciliation statement or when updating the cash book.
(c)[4]
Prepare Rahat’s ledger account as it would appear in Peter’s books. Balance the account and carry the balance down on 1 May 2022.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.