2019 N Level POA Answers Paper 1
Bycalebho
a)
Journal
| Dr ($) | Cr ($) | |
| Petty cash fund | 90 | |
| Cash at bank | 90 |
b) The amount in the petty cash fund can be easily adjusted to suit different circumstances.
c) Reimbursement required = (22 + 15 + 18 + 12) = $67
d)
Journal
| Date | Particulars | Dr ($) | Cr ($) |
| 2019 | |||
| Feb 1 | Drawings (5 + 6) | 11 | |
| Petty cash fund | 11 | ||
| Cash at bank | 11 | ||
| Petty cash fund | 11 |
e) This concept states that only transactions which can be measured in money terms are recorded.
ai) Supplier, Customer
aii) Supplier, Customer
b)
Allowance for impairment of trade receivables
| Date | Particulars | Dr ($) | Cr ($) | Balance |
| 2018 | ||||
| Jun 30 | Impairment loss on trade receivables (1 549 + 874 + 267) | 2, 690 | 2 690 Cr | |
| Jul 1 | Balance b/d | 2 690 Cr | ||
| 2019 | ||||
| Jun 30 | Impairment loss on trade receivables (2 690 – (481 + 594)) | 1 615 | 1 075 Cr | |
| Jul 1 | Balance b/d | 1 075 Cr |
c)
Impairment loss on trade receivables
| Date | Particulars | Dr ($) | Cr ($) | Balance |
| 2018 | ||||
| Jun 30 | Allowance for impairment of trade receivables (1 549 + 874 + 267) | 2, 690 | 2 690 Dr | |
| 30 | Income summary | 2, 690 | – | |
| 2019 | ||||
| Jun 30 | Allowance for impairment of trade receivables (2 690 – (481 + 594)) | 1 615 | 1 615 Cr | |
| 30 | Income summary | 1 615 | – |
d) Prudence concept.
e) Accounting period concept
a)
| Debit | Credit | |
| Sales returns | ✔ | |
| Bank overdraft | ✔ | |
| Cost of sales | ✔ | |
| Prepaid expenses | ✔ | |
| Income received in advance | ✔ | |
| Drawings | ✔ | |
| Accumulated depreciation of motor vehicles | ✔ |
b)
| Increase in profit | Decrease in profit | No effect | |
| $ | $ | ||
| Error 1 | 150 | ||
| Error 2 | 90 | ||
| Error 3 | ✔ | ||
| Error 4 | 1 080 |
c) Accounting entries recorded in the wrong account that is of a different class as the correct account.
d) Accounting entries recorded in the wrong account that is of the same class as the correct account.
