Description

BOOK KEEPING AND ACCOUNTING

QUESTION ONE

1. i) Explain at least four errors that are disclosed by the trial balance.
2. ii) What are the advantages of self balancing ledgers?
3. i) The following figures were extracted from the books ABC Ltd for the month of June 2 14

Purchases ledger balances 1.6.14                              980 Dr

184600 Cr

Sales ledger                                                        47600 Dr

1350 Cr

Credit sales                                                             68940

Credit purchases     39400 Cash sales          20600

Returns inwards

Returns outwards                                                      2500

Receipts from trade debtors                                     52600

Payments to trade creditors                                      38640

Discount received   4750 Discount allowed  6990 Bad debts written off     1240

Interest charged to debtors                                          360

Debtors cheques dishonoured          870 Purchases ledger creditors transferred to          1230 sales ledger

Purchases ledger balances                                      480 Dr

Sales ledger balances                                            1690 Cr

From the above information prepare debtors ledger control accounts for the month. (12 mark

(ii) Discuss the use of at least five books of original entry in a legal firm of your choice. In you discussion ensure that you include:

• Purpose of the book

Example of transaction

• Advantage of the books rks)