Anika began trading on 1 March 2024, yet she only started maintaining complete book-keeping records on 1 March 2025.
Anika’s assets and liabilities on 1 March 2025 were:
Premises $90 000
Motor vehicle $14 500
Inventory $3 625
Trade receivables:
Kofi $3 000
Davia $2 140
Petty cash $86
Bank overdraft $1 080
Trade payables:
Ado $1 925
Sam $210
(a)[4]
Prepare the initial journal entry dated 1 March 2025. A narrative is required.
(b)[11]
Prepare Anika’s petty cash book for March 2025. Balance the petty cash book, carry the balance down on 1 April 2025 and restore the imprest.
(c)[5]
Prepare the account for Sam in Anika’s books for March 2025. Balance the account and bring down the balance on 1 April 2025.
Worked solution & mark scheme
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