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7 marksAccruals and Prepayments

CSEC Principles of Accounts · May/June 2017 · Paper 2 · Question 1(b)

On 31 March 2017, the accountant at First Call Transport Company identifies three year-end events: partial payment of a debt with bad debt already recorded, setting a 2% provision for bad debts on accounts receivable of 43,600, and an advance rent payment of 18,000 covering 1.5 years.

Prepare the General Journal entries showing how these events affect the Income Statement at the end of the accounting year. (Narratives are not required.)

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Other parts of this question

  1. 1(a)(i)List any two journals that would provide some of the given information.[2 marks]
  2. 1(a)(ii)Prepare the Accounts Payable Control Account for Rahali Security for the month ended May 2017, clearly labelling the balancing figure.[7 marks]
  3. 1(a)(iii)Prepare the Accounts Receivables Control Account for Rahali Security for the month ended May 2017, clearly labelling the balancing figure.[4 marks]

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