Bece Model Questions Vol1 2018 Business Studies Question 2

Practice practical question 2 from the 2018 Bece Model Questions Vol1 Business Studies examination. This question covers Cash book preparation, Credit sales and cash receipts, Business communication – memorandum .

Bece Model Questions Vol1 2018 Business Studies Practical
Topics: Cash book preparation Credit sales and cash receipts Business communication – memorandum
Question 2 BECE_MODEL_QUESTIONS_VOL1 • 2018 • BUSINESS_STUDIES • practical

You are the office clerk of a small trading firm. The firm records its sales on credit and receives cash payments from customers. The following information was recorded for the month of March 2024.

Question Parts

( a )
Prepare a cash book for March 2024. The cash book should show: - Opening cash balance of ₦10,000, - Each cash receipt entry (date, receipt number and amount), - Total cash receipts for the month, - Closing cash balance. Use the data provided.
( b )
Determine the difference between total credit sales for the month and the cash actually received. Suggest two plausible reasons for this shortfall.
( c )
The manager has asked you to draft a formal memorandum to all staff reminding them of the company’s credit policy. The policy states that credit sales must be settled within 30 days and that any late payment attracts a 2 % monthly interest charge. Write the memorandum in the correct format, including heading, date, subject, body and signature.

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About This Question

This is Bece Model Questions Vol1 2018 Business Studies Question 2. It is one of the practical questions from the 2018 Bece Model Questions Vol1 Business Studies examination.

The question covers Cash book preparation, Credit sales and cash receipts, Business communication – memorandum .

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