Lottie trades as a trader, and her financial year ends on 30 April. She records petty cash using the imprest system, with an imprest amount of $150. For April 2024, the totals in the payments analysis columns of her petty cash book are:
Cleaning $21
Stationery $47
Sundry expenses $44
In April 2024, Lottie also received a refund for damaged stationery of $15, and this was paid into petty cash.
On 30 April 2024, Lottie disposed of a motor vehicle by selling it on credit to Y Limited for $6000. She had bought the vehicle on 1 May 2021 for $12000. Depreciation on vehicles is charged at 25% using the reducing balance method, and no depreciation is charged in the year of disposal.
Lottie sells 3 different types of goods, and her inventory at 30 April 2024 is shown below.
(a)[3]
Calculate how much is needed to restore the petty cash imprest on 1 May 2024.
(b(i))[1]
State one additional book of prime entry.
(b(ii))[2]
State two advantages of using books of prime entry.
(c(i))[2]
Calculate the accumulated depreciation on the vehicle at 30 April 2024.
(c(ii))[4]
Prepare the disposal of motor vehicles account.
(d)[4]
Calculate the value of Lottie’s inventory at 30 April 2024.
(e)[4]
Prepare the insurance account for the year ended 30 April 2024. Bring down the balance at 1 May 2024.
Worked solution & mark scheme
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