2020 USS 3N POA EOY P1 Q2

2020 USS 3N POA EOY P1 Q2

2 Mary Ann is a sole trader. Her transactions for September 2020 included the following.

1. Received a cheque for goods sold to a customer

2. Purchase of a new motor vehicle on credit

3. Return of goods sold previously on credit

4. Bank charges

REQUIRED

a. Complete the table below by stating the source document, the account to be debited and the account to be credited for each transaction.

[9]

The first one has been completed as an example.

 

Source document

Account to be debited

Account to be credited

 

(i)

 

Receipt

 

Cash at bank

 

Sales revenue

 

(ii)

   

 

(iii)

   

 

(iv)

   

b. Name the accounting theory which requires the use of source documents when recording business transactions.

[1]

[TOTAL 10]

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(a)Source documentAcct debitedAcct credited
(ii)invoiceMotor vehicleTrade payable
(iii)credit noteSales returnsTrade receivable
(iv)bank statementBank chargesCash at bank

Objectivity theory

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