Anika began trading on 1 March 2024, although she did not begin keeping full book-keeping records until 1 March 2025.
At 1 March 2025, Anika’s assets and liabilities stood at:
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 opening 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 down the balance on 1 April 2025 and reinstate the imprest.
(c)[5]
Prepare Sam’s account in Anika’s books for March 2025. Balance the account and show the balance brought down at 1 April 2025.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.