O-Level Accounting Q.Paper

Paper Reference(s)

7011/01

London Examinations GCE
Accounting Ordinary Level
Thursday 8 January 2009 – Morning

Source booklet for use with Questions 1 to 6. Do not return the insert with the question paper.

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SECTION A SOURCE MATERIAL FOR USE WITH QUESTION 1 1. Freda Latte has opened a coffee shop which also supplies refreshments to companies. She paid £5 000 of her personal savings into a business bank account on 1 October 2008 and immediately set up a double-entry bookkeeping system. VAT applies where indicated at the rate of 10%. During the month of October 2008, Freda recorded the following transactions in her books of original entry. Purchases Day Book Date 1 October Details Espresso Supplies Less trade discount Goods £ 700 (70) 630 Sales Day Book Date 4 October Details City Traders Less trade discount Goods £ 1 300 (130) 1 170 Purchases Returns Day Book Date 5 October Details Espresso Supplies Less trade discount Goods £ 100 (10) 90 Main Journal Date 1 October Details Equipment VAT Filter Ltd Purchase of equipment on credit
2

VAT £

Total £

63

693

VAT £

Total £

117

1 287

VAT £

Total £

9

99

Debit £ 2 000 200

Credit £

2 200

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DR Bank £ 1 Oct 1 Oct 20 Oct 31 Oct Capital Bank City Traders Sales for month (including VAT) 670 3 300 5 000

Cash Book Cash £ 1 Oct 800 12 Oct 15 Oct 20 Oct Cash Espresso Supplies General expenses Purchases (including VAT) City Traders (returned cheque) Drawings Rent Balances c/d 720 5 651 8 970 670 Bank £ 800 594 535

CR Cash £

550

29 Oct

30 Oct 31 Oct 31 Oct 8 970 800

150 100 800

(a) Prepare the ledger accounts in the books of Freda Latte for the month of October 2008, using the information provided in the books of original entry and in the cash