Peter works as a trader. The transactions below occurred during April 2022.
April 2 Cash sales, $410, were banked straight away.
April 3 A cheque for $798 was paid to Rahat in full settlement of a debt of $840.
April 8 $42 cash was paid for repairs to a motor vehicle.
April 15 Goods with list price $320 were bought on credit from Rahat after a trade discount of 10%.
April 18 Cash sales, $460.
April 20 $392 was sent to Samir by telephone transfer after deducting 2% cash discount 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, settling a debt of $300 in full.
(a)[11]
Prepare Peter’s cash book on the opposite page. Balance the cash book and bring the balances down on 1 May 2022.
(b)[5]
Put a tick (✓) to show how each item in the table below would be used when preparing the bank reconciliation statement or when updating the cash book.
(c)[4]
Prepare the account for Rahat as it would appear in Peter’s ledger. Balance the account and then bring down the balance on 1 May 2022.
Worked solution & mark scheme
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