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) |
|
Cash at bank |
|
(ii) | |||
(iii) | |||
(iv) |
b. Name the accounting theory which requires the use of source documents when recording business transactions.
[1]
[TOTAL 10]
SOLUTION
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a)
| (a) | Source document | Acct debited | Acct credited | |||
| (ii) | invoice | Motor vehicle | Trade payable | |||
| (iii) | credit note | Sales returns | Trade receivable | |||
| (iv) | bank statement | Bank charges | Cash at bank | |||