Shakir started trading in the year ended 31 August 2023 but did not keep proper books of account.
His assets and liabilities on 1 September 2023 were as follows.
Motor vehicle $9500
Inventory $1240
Cash at bank $1682
Trade payables:
Latif $200
Harrison $237
(a(i))[3]
Prepare the journal for Shakir’s opening entries on 1 September 2023. No narrative is needed.
(a(ii))[2]
State two benefits of keeping double entry records.
(b)[11]
Prepare Shakir’s cash book on the facing page. Balance the cash book and bring down the balances at 1 October 2023.
(c)[4]
Calculate Shakir’s corrected bank balance.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.