SECTION | Answer the THREE questions in this ection. 1, 4D Ponting stated a busines selling computer storage devices. He provides the following list, ‘of transactions which occurred during January 2008, January 1 19 2 24 26 31 31 ‘Deposited $5 000 of personal savings in the bank: Deposited $4 500 of a $5 000 credit union loan inthe same account. The balance was kept forthe office. The loan required a payment of 1% interest al the end ofeach month forthe next three years. Bought office desk and sufe for S800, paying by cheque. Paid SI 500 for ent for January by cheque. Bought supplies forsale at a cost of $6 000 on credit from Technol Suppliers Cashed a choque of $900 for office use ‘Bought a second-hand van for $2 400, pu by cheque and spent. futher $31 300 in repairs on the van. The mechanic accepted a cheque for the Credit sales to Canter Business Solutions amounted to $5 700. The terms agreed on were net 108 10 days Miscellancous business expenses of $$80 were pai in cash Issued to Technol Suppliers a cheque for $5 600 in full payment of goods received on Fanuaey 5. Cash sales amounted fo $4 900 of which $3 200 was banked. Received a cheque in fll settlement from Carter Business Solutions, Drew S1 500 in eash for personal use. Paid the interest due on credit tanion loan in cash, ID Ponting's closing stock totalled $360. The sales assistant has not yet been paid wages of $300. From the information provided! (2) Prepare JD Ponting’s3-column Cash Book forthe month of January 2008, (A marks) (b) Prepare JD Ponting’ Trading and Profit and Loss Account for the month of January 2008, 012390201F 2009 (9 marks) ‘Total 20 marks GOON TO THE NEXTPAGE2. Stephen Peterson, an accounting student, prepared his father’s final accounts, The following ‘errors were discovered hy the accountng technician who examined th accounts. 1 2 The sale of goods $2500 on credit to K Martin had been entered in K Marteen’s Account ‘The purchase of goods fr $1 575 cash was completely mitted from the books, “The purchase ofa motor ear for $5 000 had been entered in the Motor Expenses Account 4, Discounts Allowed of $400 had been entered in ertoron the debit side ofthe Discounts Received Account 5. The wages account was undercast by $430, 6. receipt of cash from J Slows for $100 had been entered on the credit side ofthe Cash Book and the dabit side of J Slows" Account. (a) Prepare the journal entries necessary to cotrect the above tors, (NB. Narratives are required.) (13 marks) (©) The Income Statement prepared by Stephen Peterson showed Net Income of $24:521 Prepare a statement showing the corrected Net Income forthe business. (7 marks) ‘otal 20 marks GO ON TO THE NEXTPAGE (012390207F 2009 a(On January 1, 2009, Akil Rampaul’s Balance Shost was as follows; ASSETS LIABILITIES 8 Pant and Machinery at net book value ‘Acerued Wages 940 Accounts Receivable “Accounts Payable M0 Cash Capital 35000 Furniture and ftings ‘Bank overdraft 4120 Inventory Prepuid Insurance 45.400 During the frst week, Rampal recorded the following transactions | Sold machinery with net book value of $2.00 for $1200 cash and bought new machinery for $6 900, paying by cheque 2. Collected $1 102n eas from debtors. 3. Theinvemtory was revalued to $4 300, 4. Insuranee of $20, fr one week was used up 5. Creditors were paid $3 40 by cheque 6. The outstanding wages were paid in cash 7. Received a cheque for $13 000 from his brother. Asa a loan tbe repaid in two years. Prepare for Akil Rampanl,a revised Balance Sheet as at February 7, 2009 o show the effects of the fst week's tansactions NB. Your Balance Sheet must be classified and in vertical style and all workings must be clearly shown, 012390207F 2009 (20 marks) GO ONTO THE NEXT PAGE