subject: Basic Accounting

Question 1 Billy, the owner of a motorcycle shop, sells new bikes, used bikes and accessories. He has asked you to assist him to identify the accounting documents and book of prime entry for his transactions. (20 marks) Date Description Documents Book of prime entry May 01 Bought used bike by cash. 03 Bought new bike on credit. Sales of accessories, on cash. 15 Paid telephone bills by cash Sold 3 units of new bike to another dealer on credit. 20 Bought a second hand bike for office use by cheque 23 Bought a computer for office use on credit 31 Paid rental by cash Paid wages by cheque Bought a display rack on credit