BASIC ACCOUNTS
SEPTEMBER 2023
TIME ALLOWED: 3 HOURS
1
FOUNDATION
INSTRUCTIONS TO CANDIDATES
1. DO NOT OPEN THIS PAPER UNTIL INSTRUCTED TO DO SO BY THE
INVIGILATOR.
2. ANSWER ALL QUESTIONS.
3. BEGIN EACH QUESTION ON A FRESH PAGE.
1
QUESTION 1 (TOTAL 20 MARKS)
The following information is available after the cash book of Makanaka was compared with
her bank statement at 28 February 2023.
Information:i) The cash book showed an overdraft of $10 100.
ii) The bank statement showed a debit balance of $10 568.
iii) The deposit of $7 654 does not appear on the bank statement.
iv) Cheques not yet presented for payment were cheque numbers 511 and 516 for $805 and
$690 respectively.
v) The bank recorded the following in the current bank account of Makanaka:
- Credit card levy $150
- Service fee $243
- Interest on overdraft $163
vi) A cheque for $260 received from Amanda was dishonoured by the bank. Discount allowed
on this cheque was $30.
vii) A payment by a debtor Chengetai for $3 000 appears in the bank statement only.
viii) The bank statement showed a debit order for $693 in favour of Deadsure for an insurance
premium.
ix) Nyarai, a tenant, deposited her monthly rent directly into the bank account, $4 200.
You are required to:a) Update the cash book.
(10 marks)
b) Draw up the bank reconciliation statement as at 28 February 2023.
(7 marks)
c) State any three (3) items which are reconciliation items, when preparing a bank
reconciliation statement.
(3 marks)
QUESTION 2 (TOTAL 20 MARKS)
The following trial balance was extracted from the books of Ranganai at the close of business
on 31 March 2023:
$
$
Purchases and sales
92 800
157 165
Cash
4 100
Bank
324
Capital
11 400
Drawings
17 100
Office furniture
2 900
Rent
3 400
Wages and salaries
31 400
Discounts
820
Accounts receivable and payable
12 316
5 160
Inventory
4 120
245
Allowances for credit losses
Delivery van
3 750
Van running costs
615
Credit losses
730
405
174 375
174 375
2
Notes:
a) Inventory 31 March 2023 $2 400.
b) Wages and salaries accrued at 31 March 2023 $340.
c) Rent prepaid at 31 March $230.
d) Van running costs owing at 31 March 2023 $72.
e) Increase allowance for credit losses by $91.
f) Provide for depreciation as follows: office furniture $380 and delivery van $1 250.
Required:Draw statements of Profit or Loss and Other Comprehensive Income and Financial Position
as at 31 March 2023.
(20 marks)
QUESTION 3 (TOTAL 20 MARKS)
The following is a summary of the petty cash transactions of Taonezvi for August 2023:
2023
August 1
Received $500 as petty cash from the accountant
2
Airtime
3
Fuel
4
Cleaning
5
Travelling
8
Stationery
9
Cleaning
14
Airtime
15
Travelling
18
Stationery
20
Delivery van repairs
26
Fuel
27
Cleaning
29
Airtime
30
Fuel
$
18
12
15
22
17
18
5
8
9
43
21
28
5
14
You are required to prepare the petty cash book of Taoenezvi. The imprest float is $500.
Transactions should be classified as telephones, motor vehicles expenses, cleaning, travelling
and stationery.
(20 marks)
3
QUESTION 4 (TOTAL 20 MARKS)
a) Farai owns a workshop that makes iron gates. The following information was taken from
his books on 31 December 2022:$
Stocks on 1 January 2022-Raw materials
22 400
- Finished goods
14 400
Stocks on 31 December 2022-Raw materials
20 700
-Finished goods
20 000
Purchases of raw materials
172 100
Carriage on sales
4 200
Carriage on raw materials
3 200
Workshop wages
75 600
Sales staff wages
42 100
Raw materials returned to suppliers
700
Rent of premises
8 500
Workshop heating and lighting
9 200
Workshop general expenses
16 900
Depreciation of plant and machinery
9 600
Sales of finished goods
366 000
Notes:The floor area of the premises totals 6 000m². This is divided between the workshop 4
800m²and sales and administrative offices 1 200m². Rent is apportioned accordingly.
You are required to prepare Farai’s manufacturing account.
(10 marks)
b) You are required to create a sales ledger control account and purchases ledger control
account post the following information:$
March 1
Sales ledger debit balance
12 500
Sales ledger credit balance
3 800
Purchase ledger credit balance
18 000
Purchase ledger debit balance
620
March 1 to
31
March 31
DURING THE MONTH
Cash sales
Credit sales
Cash purchases
Credit purchases
Returns outwards
Returns inwards
Cash received from debtors
Cash paid to creditors
Discount allowed
Discount received
Bad debts written off
Provision for bad debts
12 000
20 800
5 100
17 510
2 000
1 800
15 000
15 300
1 290
1 380
2 200
1 260
Sales ledger credit balance
Purchases ledger debit balance
4
160
400
(10 marks)
QUESTION 5 (TOTAL 20 MARKS)
a) Matsaureni and Fungayi have been in partnership for one year sharing profits and losses in
the ratio 3:2 respectively. They are entitled to 5% per annum interest on capitals,
Matsaureni having $2 000 and Fungayi $6 000. Fungayi is to have a salary of $500. They
charge interest on drawings, Matsaureni being charged $50 and Fungayi $100. The net
profit, before any distributions to the partners, amounted to $5 000 for the year ended 31
December 2022.
You are required to prepare Profit and Loss Appropriation Account for the year. (10 marks)
b) Marian has a debit balance on her suspense account of $1 529. She has now discovered the
following errors:
i) Payment for motor expenses of $350 was correctly recorded in the cash payments
book but was credited to the motor expenses account.
ii) Payment for postage cost of $67 was correctly recorded in the cash payments book
but was entered into postage costs account as $76.
iii) An invoice for $470 was omitted from the sales day book.
iv) When the discount allowed account was balanced, the balance was under cast by $100.
v) Cleaning costs of $240 were included in the cash payments book but were not posted
to the cleaning costs account.
vi) The balance on the miscellaneous expenses account of $498 was omitted from the trial
balance.
You are required to prepare journal entries to correct the above errors.
‘END OF QUESTION PAPER’
5
(10 marks)