IGCSE Accounting Paper-1: Specimen Questions with Answers 240 - 240 of 338

Passage

Arjun is a trader whose financial year ends on 31 December.

He made the following entries in his purchases journal and purchases returns journal in December 2,019.

Arjun

Purchases Journal

Purchases Journal and Purchases Returns Journal in December 2,019
Date

Details

$

$

7 Dec 2,019

ABC Ltd.

Goods

Less: Trade Discount

8,000

800

7,200

21 Dec 2,019

XYZ Ltd.

Goods

Less: Trade Discount

3,000

450

2,550

31 Dec 2,019

Monthly Total

9,750

Arjun

Purchases Returns Journal

Purchases Journal and Purchases Returns Journal in December 2,019

Date

Details

$

$

17 Dec 2,019

ABC Ltd.

Goods

Less: Trade Discount

650

65

595

25 Dec 2,019

XYZ Ltd.

Goods

Less: Trade Discount

400

60

340

31 Dec 2,019

Monthly Total

935

Arjun made the following payments by cheque.

Arjun Made the Following Payments by Cheque

6 Dec 2,019

ABC Ltd. 4,000 in full settlement of the amount due on that date

31 Dec 2,019

XYZ Ltd. to settle the amount. Cash Discount Received 2%

Question 240 (1 of 6 Based on Passage)

Describe in Detail

Essay▾

Enter the transactions for December in the following ledger accounts.

Close the accounts on 31 December 2,019 by balancing or by making a transfer to the income statement.

Arjun

ABC Limited account

The Balancing or by Making a Transfer to the Income Statement
Date

Details

$

Date

Details

$

2,019

Dec 1

Balance b/d

4,125

XYZ Limited account

The Balancing or by Making a Transfer to the Income Statement

Date

Details

$

Date

Details

$

2,019

Dec 1

Balance b/d

1,750

Purchases Account

The Balancing or by Making a Transfer to the Income Statement

Date

Details

$

Date

Details

$

2,019

Dec 1

Balance b/d

46,500

Purchases Returns Account

The Balancing or by Making a Transfer to the Income Statement

Date

Details

$

Date

Details

$

2,019

Dec 1

Balance

Explanation

Arjun

ABC Limited account

The Table of ABC Limited Account
Date

Details

$

Date

Details

$

Dec 6

Bank A/c

4,000

2,019

Dec 1

Balance b/d

4,125

Dec 6

Discount A/c

125

Dec 7

Purchases A/c

7,200

Dec 17

Purchases Return A/c

595

Dec 31

Balance c/d

6,605

11,325

11,325

XYZ Limited account

The Table of ABC Limited Account

Date

Details

$

Date

Details

$

2,019

Dec 25

Purchases Returns A/c

340

1 Dec 2,019

Balance b/d

1,750

Dec 31

Discount A/c

79

Dec 21

Purchases A/c

2,550

Dec 31

Bank A/c

3,881

4,300

4,300

Discount Received from XYZ Ltd.

Purchases Account

The Table of ABC Limited Account

Date

Details

$

Date

Details

$

2,019

Dec 1

Balance b/d

46,500

Dec 31

Profit & Loss A/c

56,250

Dec 7

ABC Ltd.

7,200

Dec 21

XYZ Ltd

2,550

56,250

56,250

Purchases Returns Account

The Table of ABC Limited Account

Date

Details

$

Date

Details

$

2,019

Dec 31

Profit & Loss A/c

8,160

2,019

Dec 1

Balance b/d

7,225

Dec 17

ABC Ltd.

595

Dec 25

XYZ Ltd.

340

8,160

8,160

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