Karishma runs her own business. The balances in her books on 1 October 2020 included the
following.
$
Insurance account 1700 prepaid
Electricity account 1800 owing
During the financial year ended 30 September 2021 Karishma made the following payments by
cheque.
Insurance payments
$
7 February 2021 3400
13 August 2021 3500
Electricity payments
$
14 October 2020 1800
24 January 2021 1800
26 May 2021 1800
A refund of $300 for insurance overpaid was received by bank transfer on 28 February 2021. The
insurance paid on 13 August 2021 covered a period of five months to 31 December 2021.
At 30 September 2021, an amount of $2000 was owing for electricity.
REQUIRED

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 20 marks.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2021 examination, Paper 2 Variant 3 (7707_w21_qp_23.pdf).

Question

Karishma runs her own business. The balances in her books on 1 October 2020 included the
following.
$
Insurance account 1700 prepaid
Electricity account 1800 owing
During the financial year ended 30 September 2021 Karishma made the following payments by
cheque.
Insurance payments
$
7 February 2021 3400
13 August 2021 3500
Electricity payments
$
14 October 2020 1800
24 January 2021 1800
26 May 2021 1800
A refund of $300 for insurance overpaid was received by bank transfer on 28 February 2021. The
insurance paid on 13 August 2021 covered a period of five months to 31 December 2021.
At 30 September 2021, an amount of $2000 was owing for electricity.
REQUIRED

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