IGCSE Accounting Paper-1: Specimen Questions with Answers 108 - 110 of 214

Passage

Susan’s statement was as follows:

WESTERN COMMERCIAL COMPANY

STATEMENT OF ACCOUNT

Western Commercial Company.

Shows given table is Western Commercial Company statement of account.

Date

Particular

Dr

$

Cr

$

Balance

$

September 1

Balance b/f

4000.00

4000.00

September 7

Sales – invoice 401

66.50

4066.50

September 10

Sales – invoice 402

117.00

4183.5

September 15

Sales return – credit note 39

17.50

4166

September 19

Bank –Susan

3920.00

246

September 30

Balance c/f

246

Terms: 2 % discount for settlement within 20 days.

Question number: 108 (3 of 5 Based on Passage) Show Passage

Edit
Short Answer Question▾

Write in Short

State why Susan paid $3920 on 20 September when the balance brought forward on 1 September was $4000.

Explanation

She received discount of 2 % on her opening balance $4000.

Solution: Discount on sales will allowed when they pay the amount within the time limit given by the seller. Hence, Susan paid the amount $3920 within the time limit of 20 days. Hence,

Question number: 109 (4 of 5 Based on Passage) Show Passage

Edit
Short Answer Question▾

Write in Short

State for what purpose of sending a statement of account to a customer.

Explanation

The main purpose of sending a statement of account to a customer:

  • The statement will provide information about the amount due to the supplier.
  • The customer will be reminded through the statements.

The total record of statement was provided to the Susan in order to show that there is no error have been made by customer or by the supplier with amount payable or receivable by them.

Question number: 110 (5 of 5 Based on Passage) Show Passage

Edit
Short Answer Question▾

Write in Short

Justify with your answer whether this payment made by Susan is correct amount.

Explanation

The amount paid by her is correct because she paid it within the time limit

Provided by the supplier.

The discount will be allowed to the customer when they paid their due amount within the credit period. Susan also paid the amount within the credit period of twenty days.