IGCSE Accounting Paper-1: Specimen Questions with Answers 242 - 246 of 338
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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 2019.
Arjun
Purchases Journal
| Date | Details | Dollar $ | Dollar $ |
| 7 Dec 2019 | ABC Ltd. Goods Less: Trade Discount | 8000 800 | 7200 |
| 21 Dec 2019 | XYZ Ltd. Goods Less: Trade Discount | 3000 450 | 2550 |
| 31 Dec 2019 | Monthly Total | 9750 |
Arjun
Purchases Returns Journal
| Date | Details | Dollar $ | Dollar $ |
| 17 Dec 2019 | ABC Ltd. Goods Less: Trade Discount | 650 65 | 595 |
| 25 Dec 2019 | XYZ Ltd. Goods Less: Trade Discount | 400 60 | 340 |
| 31 Dec 2019 | Monthly Total | 935 |
Arjun made the following payments by cheque.
| 6 Dec 2019 | ABC Ltd. 4000 in full settlement of the amount due on that date |
| 31 Dec 2019 | XYZ Ltd. to settle the amount. Cash Discount Received 2 % |
Question 242 (3 of 6 Based on Passage)
Write in Brief
One Liner▾Name the following documents: (Marks 1)
(I) the document issued by ABC Limited on 7 December 2019
Explanation
(I) Since ABC Ltd. is the seller, he will issue Arjun a Sales Invoice.
Question 243 (4 of 6 Based on Passage)
Write in Brief
One Liner▾Name the following documents: (Marks 1)
The document issued by Arjun on 17 Dec 2019
Explanation
Arjun returns some goods to ABC Ltd. on 17 Dec 2019, so he will issue a debit note to ABC Ltd.
Question 244 (5 of 6 Based on Passage)
Write in Brief
One Liner▾Name the following documents: (Marks 1)
Calculate the percentage of cash discount allowed by ABC Ltd. to Arjun on 6 December 2019
Explanation
(III)
Question 245 (6 of 6 Based on Passage)
Write in Brief
One Liner▾State one reason of ABC Limited allowing Arjun trade discount on his purchases on 7 Dec 2019. (Marks 1)
Explanation
Trade discount is allowed on bulk purchases. As Arjun has made purchases for $ 8000, he has received discount on that.
Question 246
Write in Brief
One Liner▾Make the double entry to restore the petty cash imprest on 1st October 2019. (Marks-1)
| Debit | $ | Credit | $ |
Explanation
| Debit | $ | Credit | $ |
| Petty Cash A/c | 8 | To Cash A/c | 8 |