◈ Oracle PrepSign Up Free
O-LevelAccountingSources and recording of data7707/22 · Oct/Nov 2013 · Q120 Marks

Kulbir commenced trading on 1 January 2013 with cash $350, bank $3000, motor vehicle $6500 and a loan from Sanjay of $5000.

  1. (a)Prepare Kulbir's opening entries in the general journal and show her capital at 1 January 2013. A narrative is required.[3]
  2. (b)On 28 January 2013 Kulbir sold her motor vehicle to Aktar Allam on credit for $6500. On the same day she purchased on credit from Aston Motors Limited a new vehicle for $10000. Show the entries in the general journal to record the sale of the old motor vehicle and the purchase of the new motor vehicle.[6]
  3. (c)Give two other uses of the general journal.[2]
  4. (d)Kulbir operates on a mark-up of 25%. The table below contains transactions carried out by Kulbir in her first week of trading. Complete the table for each transaction. The first transaction has been completed as an example. 2013 | Transaction | Source document | Book of prime entry | Effect on profit ---|---|---|---|--- Jan 4 | Goods sold, cost price $400, on credit to Keen | Invoice | Sales journal | Increase $100 Jan 5 | Keen returned goods, selling price $80 | | | Jan 6 | Payment made to J Singh, $323 in cash, after deducting $17 cash discount | | | Jan 7 | Kulbir withdrew $200 from the bank for personal use | | | [9]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

  1. [1] Cash Dr $350 (1)
  2. [1] Bank Dr $3000 (1)
  3. [1] Motor vehicle Dr $6500 (1)
  4. [1] Loan Cr $5000 (1)
  5. [2] Capital Cr $4850 (2) (1 of) OR (4850)
  6. [1] Narrative: Assets and liabilities at start of business. (1) OR Capital at this date (1)
  7. [1] Disposal Dr $6500 (1)
  8. [1] Motor vehicle Cr $6500 (1)
  9. [1] Aktar Allam Dr $6500 (1)
  10. [1] Disposal Cr $6500 (1)
  11. [1] Motor vehicle Dr $10000 (1)
  12. [1] Aston Motors Limited Cr $10000 (1)
  13. [1] (c) Any two uses from: Correction of errors (1)
  14. [1] (c) Year-end transfers/from expenses account to Income Statement (1)
  15. [1] (c) Items which cannot be recorded in other journals (1)
  16. [1] (c) Bad debts written off (1)
  17. [1] (c) Depreciation of the year (1)
  18. [1] (c) Record drawings for inventory (1)
  19. [1] (d) Jan 5: Credit note (1)
  20. [1] (d) Jan 5: Sale returns journal (1)
  21. [1] (d) Jan 5: Decrease $16 (1)
  22. [1] (d) Jan 6: Receipt (1)
  23. [1] (d) Jan 6: Cash book (1)
  24. [1] (d) Jan 6: Increase $17 (1)
  25. [1] (d) Jan 7: Bank Statement/Cheque counterfoil (1)
  26. [1] (d) Jan 7: Cash book (1)
  27. [1] (d) Jan 7: No effect (1)

Write your answer and get it marked

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Sign up free →

About this question

Topic
Sources and recording of data, O-Level Accounting (syllabus 7707). Structured question, 20 marks.
Source
O-Level Accounting, Oct/Nov 2013 Paper 2 Variant 2, question 1.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Sources and recording of dataMay/June 20111m

Jane, a trader, withdrew $50 from the business bank account for office use. How is this recorded in Jane's books?

Sources and recording of dataMay/June 20111m

Winston decides to write off a debt due to him from Leroy for goods sold on credit. How is this recorded in Winston'…

Sources and recording of dataMay/June 20111m

An employer provides each employee with a time sheet. Which statement is correct?

Accounting proceduresMay/June 20111m

Which appears in the appropriation account of a limited company?

The fundamentals of accountingMay/June 20111m

Which is a direct cost?

Analysis and interpretationMay/June 20111m

Jake had current liabilities of trade payables and had current assets of inventory, trade receivables and cash at ban…

← Browse all past-paper questions

© 2026 Oracle Prep