Accounting P1 mistake log

What is not an example of a book-keeping entry?

expenses paid during the year entered in the income statement

Sally maintains a full set of accounting records. 

She has entered the following transactions in her cash book. 

Which transactions will then be entered into the nominal ledger?

2, 3 and 4

Sue allows 2% cash discount to credit customers who settle their account within 28 days. 

Jane purchased goods for $200 from Sue on 10 September but returned these goods to Sue on 15 September. 

Which entry did Sue make for the transaction on 15 September? 

 sales returns journal $200 

The assets of a business increased by $22 000 and its liabilities decreased by $6000 over a one-year period. 

During this period, the owner invested an additional $4000 of private funds into the business and withdrew $7000 for personal use. 

How much was the profit for the year?

$31 000

 Why does a business need to provide for depreciation in its accounting records?

to record as an expense the amount of the non-current assets used up during the year

Which statement correctly describes called-up share capital?

the share capital for which payment has been requested 

At the beginning of the year on 1 January, Keith was owed $1500 com nission by clients. 

During the year, Keith received $18000 commission. 

At the end of the year on 31 December, Keith was owed $800 commission by clients. 

How much commission did Keith record in his income statement for the year ended 31 December? 

$17 300

Gem has been in business for many years. On 1 March, Gem purchased a new factory. On 

that date, he paid three months' insurance on his factory, totalling $900. 

What should Gem enter for insurance in his statement of financial position on 31 March? 

$600 in current assets 

Natalie is both a customer of and a supplier to Gustav. 

On 28 June, Gustav's account in Natalie's purchases ledger had a credit balance of $295, 

and his account in Natalie's sales ledger had a debit balance of $140. 

Gustav wishes to offset one amount against the other. 

Which entries will Gustav make in his control accounts? 

Debit purchases ledger control account $140, credit sales ledger control account $140 

Shula's financial year ends on 31 March. On 1 April 2024, there was a credit balance of $100 on Yasmin's account in Shula's purchases ledger. 

What does this mean?

Shula owed $100 to Yasmin.

Raminder maintains a petty cash book using the imprest system. The monthly imprest of $250 is restored on the first day of each month. 

In January, the petty cashier spent $105, and received a refund of $15 from a stationery supplier. 

How much was given to the petty cashier on 1 February to restore the imprest?

$105 

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