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
| 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
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.
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
| Date | Details | $ | Date | Details | $ |
2,019 Dec 1 | Balance b/d | 4,125 |
XYZ Limited account
Date | Details | $ | Date | Details | $ |
2,019 Dec 1 | Balance b/d | 1,750 |
Purchases Account
Date | Details | $ | Date | Details | $ |
2,019 Dec 1 | Balance b/d | 46,500 |
Purchases Returns Account
Date | Details | $ | Date | Details | $ |
2,019 Dec 1 | Balance |
Explanation
Arjun
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
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
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
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 |