QUESTION ONE [20 MARKS]

1. Complete the following table: (3)

Accounting Concept	Meaning
Prudence concept

2. Define a trial balance and state any three errors that will result in the creation of the suspense account in the trial balance. (5)
3. As a creditors clerk at Zinwa Ltd you have just been delegated a duty of compiling and preparing the cash book of the company. A cash book helps the company to track all the daily cash transactions of the company as in what they received either as cash or through the bank or all payments as cash transaction.

You are starting with the month of March 2022 and the following extract has been availed to you:

March 2022	Descriptions of monthly transactions	$
1	Capital at the company bank	24 000
3	Rent was paid using cash	2 400
7	Cash Sales	5 760
13	Purchased a machine and payment made by cheque	12 000
17	Cash withdrawn for personal use	1 440
31	Used a cheque to pay for wages	5 760

Required: Prepare a two-column cash book for Zinwa Ltd. (10 marks)

4. State any four (2) books of Prime entry that you are aware of. (2 marks)