(10 marks: 6 minutes) 1.2 Informal and Formal trader-Record keeping
Queen Dlomo runs a very successful business making and selling curry pastes at home Queen
decided to make and sell curry pastes and sell them at flea markets. She sells her products in
supermarkets. Queen keeps a copy of any receipts, invoices or cash slips that she receives,
however she does not issue any documents when customers buy from her. Queen had no
training in bookkeeping or Accounting. When she started her business, she bought an A4
exercise book to record all her transactions. She divided the page into half. On the left hand
side she recorded any money she spent. She called this side of the page 'expenses. On the right
side hand side she made a heading called income. Here she recorded any cash received.
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A. Explain how this is different from the System you have been a
B. From her list of expenses state one item that is not an expense
(2)
A. Explain what problem Mary is likely to have as a result of not issuing any source
document
(2)​