Question 2 (10 marks) Indicate the accounts to be debited and credited in each of the following transactions.

Montle Pty Ltd started business with P300,000 at the bank

a. Bought office furniture paying by cheque P30,000.

b. Obtained a bank loan from the bank for P120,000.

c. Purchased goods on credit from YM Ltd for P30,000 d. Sold goods on credit to AT ltd for P15,000

Question 3 (6 marks) Differentiate between the following:

a. Financial accounting and management accounting (2 marks)

b. Accrual and Prepayment. (2 marks)

c. Bad debt and Provision for bad debt. (2 marks)

Question 4 (5 marks) Outline five (5) reasons for the discrepancy between the cash book and the bank statement. XYZ Ltd commenced business on 1st January 2014. On that day, XYZ Ltd bought equipment on credit from CCC Ltd equipment Ltd at P85 000. The equipment will be used for 5 years and the estimated value at the end of the 5 years is P25, 000. Calculate the depreciation for the equipment at 10% for the first three years using the reducing balance method.

Question 5 (10 marks) Indicate the accounts to be debited and credited in each of the following transactions. e. Lorato started business with P100,000 cash. f. . P80,000 cash was banked. g. Bought motor vehicle paying by cheque P20,000. h. Paid rent P10,000 cheque. i. Cash Sales P5,000.

Question 7 (5 marks) Outline any five errors that cannot be detected by the trial balance.

Question 8 (6 marks) Calculate the breakeven point in units from the following information by using the equation. Fixed costs P60 000 Selling price per unit P80 Variable costs per unit P60

Question 9 (4 marks) The following information relates to the business of K Phiri for the year P Purchases 16 000 Sales 20 000 Stock, 1 Jan, 4 000 Stock, 31 Dec. 6 000 Expenses 3 500 Calculate for each year the following: a) Gross profit as a percentage of turnover (2 marks) b) Net profit as a percentage of turnover (2 marks)