Observation

Comments

Many candidates attempted this question and their performance was quite impressive. However, few candidates could not differentiate between prime book and ledger as they presented explanation meant for sales account as sales day book.

Some of the suggested answers were:

(1a)      Source Documents Used in Business Transactions are:

• Debit note;
• Credit note;
• Purchases invoice;
• Sales invoice;
• Payment voucher;
• Petty cash voucher;
• Cheque counterfoil/cheque stub;
• Receipt;
• Cash register;
• Pay-in-slip/deposit slip;
• Bank statement;
• Bill of exchange;
• Employee time card.

(1b)        Uses of:
(i)Cash book

• It is used to record all receipts and payments of cash and cheques.

(ii)Returns Inwards book

• It is used to record goods returned by customers.

(iii)Purchases Day book

• It is used to record credit purchases or goods bought on credit.

(iv)Sales Day book

• It is used to record credit sales or goods sold on credit.

(v)Returns Outwards book

It is used to record goods returned to suppliers