Question 3 (50 marks) There are six parts to Question 3 (af). You are required to answer each part. (The word limit for Question 3 (e) is 300 words and for Question 3 (f), 200 words.) Question 3 is based on Book 3 Chapter 4 and the document Summary of Book 4 Chapters 13 under Assessment on the B124 21J website. (Excellent preparation for Question 3 would be to complete Question 3 of Practice material for TMA02 under Assessment on the B124 21J website.) Robyn owns and manages a small business which sells organic cosmetics to high street shops and online retailers. Robyn sells to customers on credit on 30 days credit terms. (Robyn manages all aspects of the business, including delivery and collection of the cosmetics.) The business accounts are balanced at the end of each month, and the transactions are posted daily. On 1 April the balances on Robyns general ledger accounts were as follows: Account name Debit () Credit () Capital 60,000 Van (at net book value) 32,000 Bank 2,750 Receivables control 68,250 Payables control 43,000 103,000 103,000 On 1 April, the debit balances on the receivables ledger accounts were as follows: Receivables ledger accounts Basil 17,000 Mint 29,930 Rosemary 21,320 Total 68,250 On 1 April, the credit balances on the payables ledger accounts were as follows: Payables ledger accounts Carrot 12,547 Floris 30,453 Total 43,000 During April, the following transactions took place: No. Date Amount () Transaction 1 5 April 7,500 Robyn receives payment from customer Basil in part settlement of amounts outstanding. 2 8 April 5,000 Robyn sells goods to customer Mint on 30 days credit terms. 3 10 April 2,100 Robyn pays the business rent from her personal bank account. 4 15 April 21,320 Robyn receives payment from customer Rosemary in full settlement of the amount outstanding. 5 18 April 8,800 Robyn purchases goods from supplier Carrot on 30 days credit terms. 6 21 April 1,800 Robyn pays supplier Carrot by bank transfer in part settlement of amounts outstanding. 7 25 April 30,453 Robyn pays by bank transfer the full amount outstanding on the account of supplier Floris. 8 30 April 9,900 Robyn sells goods to customer Basil on 30 days credit terms. Required: a.Set out Robyns general ledger accounts and the receivables and payables ledger accounts at 1 April. (8 marks) b.Continuing on, post to the relevant accounts the eight transactions that took place in April. Remember that postings are made daily. (12 marks) c.Balance off the general ledger accounts and the receivables and payables ledger accounts. Make sure that the balance on the receivables control account agrees with the total of the balances on the personal accounts in the receivables ledger. Do the same for the payables control account and the personal accounts in the payables ledger. Show all relevant details for all T-accounts. (10 marks) d.Present the trial balance at 1 May. (5 marks) e.What do you notice about Robyns management of cash, receivables and payables? What advice would you give her regarding the receivables? What question might you ask her in respect of the payables? (10 marks)