MHE30133NBHMHE30133NBHSERIES 2 EXAMINATION 2000BOOK-KEEPINGFIRST LEVEL(Code No: 1006)MONDAY 10 APRIL________Instructions to Candidates(a) The time allowed for this examination is 2 hours 30 minutes.(b) Answer all 4 questions.(c) All questions carry equal marks.(d) Candidates are advised to study the “REQUIRED” section of each question carefully. They should then extract from the information supplied the data required for their answers.(e) All answers must be clearly and correctly numbered but need not be in numerical order.(f) Your answers should be written in blue or black ink/ballpoint. Pencil may be used only for graphs, charts, diagrams, etc.(g) Presentation is important and marks may be lost through lack of neatness.(h) Candidates may use calculators provided the calculators give no printout, have no word display facilities, are silent and cordless. The provision of batteries and responsibility for their condition must rest with the candidate.(i) Workings must be shown._______1006/2/00 1 MH E 1006 2 R BH >f2[EW9W6g2`?hTU3]E]8[EW5X#QUESTION 1Delia Tremett commenced in business on 1 April Year 9. She decided to offer to credit customers a cash discount of 2% for payment within 14 days of the sale or 1% for payment within 15 to 30 days.The following details are from the books of Delia Tremett:Year 9 2 April Bought goods on credit from County Services at a list price of £480, subject to a trade discount of 10% and a cash discount of 2% for payment within 30 days. 4 April Sold goods on credit to M Foxley at a list price of £320, subject to a trade discount of 12%. 7 April Sold goods on credit to K Weston, at a list price of £480, subject to a trade discount of 12%.10 April K Weston returned goods purchased on 7 April with a list price of £80.13 April Bought goods on credit from Kingseast Limited at a list price of £360, subject to a trade discount of 15% and a cash discount of 2% for payment within 14 days or 1% for payment within 15 to 30 days.20 April Sold goods to M Foxley at a list price of £600, subject to a trade discount of 15%.21 April Received a cheque from M Foxley in settlement of the invoice dated 4 April.24 April Sent Kingseast Limited a cheque in settlement of the invoice dated 13 April.29 April Sent County Services a cheque in settlement of the invoice dated 2 April.30 April Received a cheque from M Foxley in settlement of the invoice dated 20 April.REQUIRED(a) Show the entries for the above transactions in the: (i) Purchases Day Book (ii) Sales Day Book (iii) Sales Returns Day Book(7 marks)(b) From the above transactions, record the entries in the accounts of the two debtors and two creditors. Balance the accounts at 30 April Year 9.(15 marks)(c) Show the transfer of the totals of the three Day Books to the respective General Ledger Accounts at 30 April Year 9.(3 marks)(Total 25 marks)1006/2/00 3 QUESTION 2James Moorhead, a trader, had the following transactions during the financial year ended 31 December Year 5.(1) 17 May Purchased a motor vehicle for £13,700 from Cheshunt Motors. James Moorhead paid a deposit of £4,000 by cheque, the balance of the purchase being on credit.(2) 23 July Henry Small, a debtor, paid £270 towards a debt of £630. The balance of the debt was written off as irrecoverable.(3) 11 Oct James Moorhead took from stock, for his own private use, goods which had been purchased during Year 5, for £510.At 31 December Year 5, James Moorhead prepared a Trial Balance but it did not balance. After investigation he found the following errors:(4) A payment of £738 to a creditor, T Larken, had been posted to another creditor’s account in the name of K Ladburn.(5) The payment by cheque of an invoice for £465 for motor vehicle repairs had been recorded correctly in the Cash Book but had been debited to Motor Vehicles Account.(6) The total of the discount column on the credit side of the Cash Book, £63, had been posted to the debit of Discount Received Account.(7) Rent receivable of £650 for the month of November had been correctly entered in the Cash Book but was posted to the credit of Rent Payable Account.REQUIREDPrepare Journal entries, without narrations:(a) to record each of the transactions (1), (2) and (3)(b) to correct, at 31 December Year 5, the errors stated in (4), (5), (6) and (7).(25 marks)QUESTION 3On 1 May Year 4, the Cash Book balances of Claire Stewart, a trader, were:Cash £236Bank (Current Account) £6,154 (Dr)During May Year 4, the following transactions took place:(1) Cheques were received from the following debtors who all took advantage of the cash discount available Amount Cash discount Amount owed allowed received £ £ 17 May T Lake 320 2% 312。