O-LevelAccountingSources and recording of data7707/21 · May/June 2025 · Q120 Marks

Anika started in business on 1 March 2024, but she did not start to keep full book-keeping records until 1 March 2025. Anika's assets and liabilities at 1 March 2025 were: $ Premises 90 000 Motor vehicle 14 500 Inventory 3625 Trade receivables: Kofi 3000 Davia 2140 Petty cash 86 Bank overdraft 1080 Trade payables: Ado 1925 Sam 210

(a)Prepare the opening journal entry at 1 March 2025. A narrative is required.[4]
(b)Anika decided to maintain a petty cash book using the imprest system. The imprest amount is $150. On 1 March 2025, Anika drew the amount required for petty cash from the bank account. During March 2025, Anika made the following payments from petty cash. March 6 Paid for petrol, $30 10 Paid for computer paper, $12 17 Paid Sam, $48, on account 21 Paid for postage, $6 28 Paid for car cleaning, $8 Prepare Anika's petty cash book on page 5 for the month of March 2025. Balance the petty cash book, bring down the balance on 1 April 2025 and restore the imprest.[11]
(c)On 21 March 2025, Anika purchased goods on credit from Sam, list price $120, subject to a trade discount of 5%. On 25 March 2025, Anika returned half of these goods. Prepare the account for Sam in the books of Anika for March 2025. Balance the account and bring down the balance at 1 April 2025.[5]

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

[1] Debit: Premises $90 000; Motor vehicles $14 500; Inventory $3 625; Trade receivables – Kofi $3 000; Davia $2 140; Petty cash $86.
[1] Credit: Bank overdraft $1 080; Trade payables – Ado $1 925; Sam $210.
[1] Capital (balancing figure) $110 136.
[1] Total debits/credits $113 351 AND Narrative: Assets, liabilities and capital at this date.
[1] Mar 1 Balance b/d $86
[1] Mar 1 Bank $64
[1] Mar 6 Petrol $30
[1] Mar 10 Computer paper $12
[1] Mar 17 Sam $48
[1] Mar 21 Postage $6
[1] Mar 28 Car cleaning $8
[1] Motor expenses $30 (for petrol)
[1] Office expenses $12 (for computer paper)
[1] Ledger accounts $48 (for Sam)
[1] Office expenses $6 (for postage)
[1] Motor expenses $8 (for car cleaning)
[1] Correct dates for all transactions
[1] Correct totals for analysis columns
[1] Balance c/d $46 and Apr 1 Balance b/d $46 (OF)
[1] Mar 1 Balance b/d $210
[1] Mar 21 Purchases $114 (calculated as $120 - 5% trade discount)
[1] Mar 17 Petty cash $48
[1] Mar 25 Purchases returns $57 (calculated as half of $114)
[1] Mar 31 Balance c/d $219
[1] Apr 1 Balance b/d $219 (OF)

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