IGCSE Accounting Paper-1: Specimen Questions with Answers 105 - 107 of 338
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Question 105
Explanation
Profit and loss account.
Final accounts took place in the last step of the accounting cycle. A trader prepares final accounts when the errors are rectified in the extracted trial balance. The final accounts include a number of accounts such as
- Trading accounts
- Profit and loss account
Passage
Susan՚s statement was as follows:
| 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 106 (1 of 5 Based on Passage)
Write in Short
Short Answer▾Susan desired to avail the advantage of each month of the discount terms which is offered by the Western Commercial Company.
Explain how Susan ensures about the discount on payment of her credit?
Explanation
She should pay the amount with in twenty one days
The customers have to pay their dues within their credit period in order to enjoy or avail the discount on their payment. The credit period is allowed to the customer for prompt payment of their dues.
Question 107 (2 of 5 Based on Passage)
Write in Short
Short Answer▾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.