Kalima is a trader.
At the beginning of September 2024, Kalima had $240 cash in hand, a bank balance showing a $890 credit and a credit customer, Elizah, who owed Kalima $520.
The following transactions occurred during the month:
September
2 Stationery paid for in cash, $82
3 Cash sales, $478
A $30 cheque received at the end of August from Badr, a credit customer, was dishonoured
5 Wages paid by credit transfer, $1390
7 Goods bought from Gulnar on credit, $200
10 Kalima took $150 from the business bank account for personal use
14 A cheque was received from Elizah in full settlement of the amount owed after 2.5% cash discount
16 $120 cash was paid into the business bank account
21 Gulnar was paid the full amount due by credit transfer after a cash discount of 2%
23 Goods sold to Elizah on credit, $1450
29 A credit note for $325 was issued to Elizah for goods returned
(a)[13]
Use the page opposite to prepare Kalima’s cash book for September 2024. Then balance the account and carry the balances down on 1 October 2024.
(b)[1]
What is represented by the credit balance in the bank on 1 September 2024?
(c)[5]
Use Kalima’s books to prepare Elizah’s account. Then balance it and carry any balances down on 1 October 2024.
(d)[1]
Which section heading in Kalima’s statement of financial position would the balance on Elizah’s account be shown under?
Worked solution & mark scheme
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