The following balances were taken from the books of Krul Limited on 1 July 2015. Carston Garages account $ Motor van expenses account 200 credit 3200 debit The following transactions took place in July 2015. July 12 Paid Carston Garages their outstanding balance by cheque, deducting 3% cash discount July 15 Purchased fuel for the motor van, on credit, from Carston Garages, $120 July 23 Paid motor van repairs by cheque, $200 July 26 Purchased new motor van tyres from Carston Garages on credit, $400, less 15% trade discount Additional information 1 Krul Limited prepared financial statements on 31 July 2015. 2 Motor van expenses, $125, were accrued on 31 July 2015.

1. (a)Prepare the Carston Garages account for the year ended 31 July 2015. Balance the account and bring down the balance on 1 August 2015.[5]
2. (b)Prepare the motor van expenses account for the year ended 31 July 2015. Make the transfer to the income statement. Balance the account and bring down the balance on 1 August 2015.[5]
3. (c)Name the subdivision of the ledger containing each of the following accounts. Account Subdivision of the ledger Sales T Wong (credit customer)[2]
4. (d)(i)Explain each of the following accounting terms. (i) Revenue expenditure[2]
5. (d)(ii)Capital receipt[2]
6. (e)Indicate by placing a tick (√) whether each of the following transactions is revenue expenditure, revenue receipt, capital expenditure or capital receipt. Transaction Revenue expenditure Revenue receipt Capital expenditure Capital receipt Sale of motor van Purchase new motor van tyres Cash discount received Purchase a new motor van[4]