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