N Robert, who owed the business R340, absconded (disappeared) and his debt must be written off as bad.
Bad Debts' Recovered, R340
N Robert/Creditors' Control, R340
Bad Debts, R340
N Robert/Debtors' Control, R340
Account Debit
Account Credit
Question 2
2.
The owner, L Draycott donated goods with a cost price of R200 to the SPCA.
Trading Stock, R200
Drawings, R200
Donations, R200
Sales, R200
Account Debit
Account Credit
Question 3
3.
Stationery bought for R760 cash was incorrectly recorded under “Equipment” in the CPJ. This error needs to be corrected.
Stationery, R760
Creditors' Control, R760
Bank, R760
Equipment, R760
Account Debit
Account Credit
Question 4
4.
Charged J Alexander interest at 16% p.a. on his account of R240 which was 5 months overdue.
Interest on overdue accounts, R16
Interest on overdue accounts, R38.40
J Alexander/Debtors' Control, R16
J Alexander/Debtors' Control, R38.40
Account Debit
Account Credit
Question 5
5.
The owner, L Draycott, took trading stock with a selling price of R750 for personal use. The business operates on a strict mark-up of 25% on cost.
Drawings, R750
Trading Stock, R600
Drawings, R600
Trading Stock, R750
Account Debit
Account Credit
Question 6
6.
Stationery, R500 bought on account from CNA was intended for resale, but was incorrectly recorded in the Stationery expense account.
CNA/Creditors' Control, R500
Cost of Sales, R500
Stationery, R500
Trading Stock, R500
Account Debit
Account Credit
Question 7
7.
B Murphy’s cheque of R785 received in settlement of his debt of R800 was dishonoured by the bank due to insufficient funds. The cheque has already been cancelled in the CPJ. The discount must be reversed.
Bank, R800
Discount Allowed, R15
Discount Received, R15
B Murphy/Debtors' Control, R15
Account Debit
Account Credit
Question 8
8.
S Smith, who owed Draycott Retailers R850, was declared insolvent. His estate will pay out 30 cents in the rand; the remaining debt must be writen off.
Bad Debts, R255
S Smith/Debtors' Control, R595
S Smith/Debtors' Control, R255
Bad Debts, R595
Account Debit
Account Credit
Question 9
9.
An invoice for equipment costing R12 000 bought on account from Torres Traders was incorrectly recorded in the account of Thurston Traders. This error needs to be corrected.
Torres Traders/Creditors' Control, R12 000
Equipment, R12 000
Bank, R12 000
Thurston Traders/Creditors' Control, R12 000
Account Debit
Account Credit
Question 10
10.
Issued a credit note to S Naidoo for goods returned, R400. This was correctly recorded in the DAJ but was posted to the account of M Owen in the Debtors' Ledger. This error needs to be corrected.