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Revision Questions26th March 2025

The document outlines a series of revision questions related to accounting transactions for two businesses, Mr. J Ockey and Mr. Tamaa, including requirements for journal entries, ledger postings, trial balances, and adjustments for errors found in trial balances. It also includes specific transactions with amounts in Rwf for each business and asks for detailed accounting tasks to be completed. Additionally, it addresses discrepancies found in the trial balance of Gasasira and ADB Ltd, requiring journal entries and suspense accounts to correct the errors.

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nisingizwe valentine
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43 views2 pages

Revision Questions26th March 2025

The document outlines a series of revision questions related to accounting transactions for two businesses, Mr. J Ockey and Mr. Tamaa, including requirements for journal entries, ledger postings, trial balances, and adjustments for errors found in trial balances. It also includes specific transactions with amounts in Rwf for each business and asks for detailed accounting tasks to be completed. Additionally, it addresses discrepancies found in the trial balance of Gasasira and ADB Ltd, requiring journal entries and suspense accounts to correct the errors.

Uploaded by

nisingizwe valentine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Revision Questions 26th March 2025

RQ1. Mr J Ockey commenced trading as a wholesaler stationer on 1 May 2024 with a capital of
5,000,000Rwf with which he opened a bank account for his business.
During May the following transactions took place.
May 1 Bought shop fittings and fixtures from store fitments Ltd for 2,000,000Rwf by cheque
May 2 Purchased goods on credit from Abel 650,000Rwf
May 4 Sold goods on credit to Bruce 700,000Rwf
May 9 Purchased goods on credit from Green 300,000Rwf
May 11 Sold goods on credit to Hill 580,000Rwf
May 13 Cash sales paid into bank account 200,000Rwf
May 16 Received cheque from Bruce in settlement of his account
May 17 Purchased goods on credit from Kay 800,000Rwf
May 18 Sold goods on credit to Nailor 360,000Rwf
May 19 Sent Cheque to Abel in settlement of his account
May 20 Paid rent by cheque 200,000Rwf
May 21 Paid delivery expenses by cheque 50,000Rwf
May 24 Received from Hill 200,000Rwf on bank account
May 30 Drew cheque for personal expenses 200,000Rwf and assistant wages 320,000Rwf
May 31 Settled the account of Green.
Required
a) Record a general journal.
b) Post the entries in the ledger accounts and balance them.
c) Extract a trial balance as at 31 May 2024.
RQ2. Mr. Tamaa started a business on 1st January 2023.
During the first month of trading the following transactions took place:
1st Jan: Wrote a personal cheque and deposited into the business bank account 800,000Rwf.
Withdrew 375,000Rwf from the bank and put it into the cash till.
nd
2 Jan: Purchased goods by cheque 270,000Rwf
3rd Jan: Bought furniture by cheque 525,000Rwf
3rd Jan: Bought equipment on credit 175,000Rwf
4th Jan: Sold goods for cash 100,000Rwf
5th Jan: Bought goods and paid by cheque 200,000Rwf
6th Jan: Bought a motor van paying by cheque 210,000Rwf
10th Jan: Obtain loan from the bank 500,000Rwf directly into business bank account.
12th Jan: Sold goods on credit 75,000Rwf
16th Jan: Sold goods of 250,000Rwf, receiving cheque of 100,000Rwf, cash of 50,000Rwf and
balance remaining as credit sales.
16th Jan: Received a cheque from a debtor 60,000Rwf
30th Jan: Took 10,000Rwf from the cash till personal use.
Required: Write up a two-column cash book for Mr. Tamaa for the month of January 2023. (8
Marks)

RQ3. The trial balance of Gasasira failed to balance with debit side having less amount of
163,000Rwf.
Upon investigations, the following were found out (all amount indicated in 000Rwf):
1. Interest paid by Gasasira of 100 had been entered on the incorrect side of the interest
account.
2. Bank charges of 15 entered correctly in the cash book had not been posted to the ledger.
3. A payment of 140 for repairs to motor vehicles had been debited to the motor vehicles
account.
4. A cheque for 96 received from a debtor M. Otto, had been entered correctly in the cash
book but credited to the trade receivables account as 69.
5. Goods sold on credit for 180 had not been entered in the books.
6. The purchases day book had been over-cast by 25.
Required:
a) Journal entries. (6 Marks)
b) Suspense account. (3 Marks)

RQ4. The trial balance as at 25th Dec 2020 for ADB Ltd has not balanced with the credit side
have a higher amount. The unadjusted trial balance as at 25th Dec 2020 for ADB Ltd. is given as
below

On investigating the accounts, the following were discovered (all amounts in 000Rwf):
1. Some cheques paid directly to the bank by customers amounting to 39,000 have not being
recorded in the ADB bank account
2. A payment to creditors amounting to 2,000 has not yet being recorded in their accounts
3. Salary amounting to 79,000 was paid on 24th Dec but not recoded in the salary expense
account
4. A payment of rent of 480 was wrongly entered in the rent account as 840
5. A credit sale of 860 was not entered in the Sales account
Required:
a) Prepare journal entry for the above transactions. (5 Marks)
b) Open the suspense account to show the adjustments for above information. (3 Marks)
c) Prepare an adjusted trial balance after correcting the errors above. (4 Marks)

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