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- This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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- November 23, 2017 at 7:20 pm #417679
I had a question about question 4.1 and 4.4 of BPP F3 revision kit.
Q. Marshalls opening cash balance was $224 and an overdraft of $336, the following transactions took place in that month:
May 1, Sold $160 of goods to P Dixon on Credit
May 1. WIthdrew $50 from the business
May 2. Purchased goods from A Clarke on Credit for $380 less 15% trade discount
May 2. Repaid a dept of $120 owing to R Hill, taking advantage of a 10% settlement discount. The payment was by cheque
May 3. Sold $45 of goods for cash
May 4. Sold $80 of gods to M Maguire on credit, offering a 12.5% discount If payment made within 7 days. Marshall expects Maguire to take up the discount
May 4, Paid a phone bill of $210
May 4. Received a cheques from H Larkin for $180
May 5. Sold $304 of goods to M Donald on credit.
May 5. Purchase $315 of goods from Honour Co by Cheque
May 6 Recieve a Cheque from D Randle for $482
May 6 Purchased $100 of goods from G PerkinsQ4.1 What is the total of the sales day book?
A$544
B$589
C$534
D$579
The right answer is C
I picked D but according to the explanation the sales on May 3 arent considered as a sale, which I don’t understand why.Q4.2 What is the total of the purchase day book?
A$880
B$823
C$1033
D$958
The right answer is B
I picked D and again the explanation doesn’t include the purchase of goods on May 5 in the purcahse day book. I dont know why they arent included. Could someone explain that to me?
ThanksNovember 24, 2017 at 8:40 am #417754Q4.1 Only sales on credit appear in the sales day book. Cash sales appear in the cash book, not the sales day book.
Q4.2 Only purchases on credit appear in the purchase day book. Cash/cheque purchases appear in the cash book.
I do suggest that you watch my free lecture on Books of Prime Entry where I explain with a full example what goes in which books (and why).
The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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