Key Documents

Question 1

Source Documents

Answer 1

Invoices -Sales and Purchase
Credit Notes
Bank transaction report
Payroll
Petty Cash Book

Question 2

Invoices

Answer 2

record transactions made
on credit

Question 3

VAT

Answer 3

added to sales invoice

Question 4

Credit Notes

Answer 4

issued in relation to returned goods or refunds (negative invoice)

Question 5

Conceptual Frame work

Answer 5

concepts underlying preparation of FS

Question 6

Other Documents

Answer 6

Delivery Notes (GDN) - note saying customer received goods(recog of sale)
GRN - receipt of goods purchased
Debit notes - formal request of credit note
Receivables and Payables memo ledgers

Question 7

Main Financial Statements

Answer 7

SoFP - F position at given moment
SPL - performance in period
statement of changes in equity
Cash Flow
notes

Question 8

SoFP Proforma (limited Co.)

Answer 8

ASSETS
NC-Assets (Fixed, goodwill, intangible)
C-Assets (Inventories, TR, Prepayments, Cash)

EQUITY AND LIABILITIES
Capital+Reserves (O-share, Pref-share(irre), SharePrem, General reserve, RE)
NC-Liabilities (Borrowings, redeemable pref-share)
C-Liabilities (Accruals, Provisions, Tax Pay, Div Pay, TP)

Question 9

SPL Proforma (Limited Co.)

Answer 9

Revenue
less CoS
gross profit
other income*
less Expenses (Dist cost, Admin costs,)
Profit from Operation
less FInance Costs**
Profit before tax
less tax
Profit for the Period (NET PROFIT)

*dividends received, rent, insurance claim, profits from NCA disposal
**interest payable on loans, dividends redeemable shares

Question 10

Nominal Ledger

Answer 10

collection of all T-accounts which use Double Entry

Question 11

Receivables + Payables Ledger

Answer 11

show details of the TR and TP