IGCSE Accounting Paper-1: Specimen Questions with Answers 240 - 244 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 2019.

Arjun

Purchases Journal

Purchases Journal and Purchases Returns Journal in December 2019
DateDetailsDollar $Dollar $
7 Dec 2019ABC Ltd.

Goods

Less: Trade Discount

8000

800

7200
21 Dec 2019XYZ Ltd.

Goods

Less: Trade Discount

3000

450

2550
31 Dec 2019Monthly Total9750

Arjun

Purchases Returns Journal

Purchases Journal and Purchases Returns Journal in December 2019
DateDetailsDollar $Dollar $
17 Dec 2019ABC Ltd.

Goods

Less: Trade Discount

650

65

595
25 Dec 2019XYZ Ltd.

Goods

Less: Trade Discount

400

60

340
31 Dec 2019Monthly Total935

Arjun made the following payments by cheque.

Arjun Made the Following Payments by Cheque
6 Dec 2019ABC Ltd. 4000 in full settlement of the amount due on that date
31 Dec 2019XYZ Ltd. to settle the amount. Cash Discount Received 2 %

Question 240 (1 of 6 Based on Passage)

Edit

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 241 (2 of 6 Based on Passage)

Edit

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 242 (3 of 6 Based on Passage)

Edit

Write in Brief

One Liner▾

Calculate the percentage of trade discount ABC Limited allowed Arjun on his purchases on 7 December 2019.

Explanation

Question 243 (4 of 6 Based on Passage)

Edit

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 244 (5 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 2019 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
DateDetailsDollar $DateDetailsDollar $
2019

Dec 1

Balance b/d4125

XYZ Limited account

The Balancing or by Making a Transfer to the Income Statement
DateDetailsDollar $DateDetailsDollar $
2019

Dec 1

Balance b/d1750

Purchases Account

The Balancing or by Making a Transfer to the Income Statement
DateDetailsDollar $DateDetailsDollar $
2019

Dec 1

Balance b/d46500

Purchases Returns Account

The Balancing or by Making a Transfer to the Income Statement
DateDetailsDollar $DateDetailsDollar $
2019

Dec 1

Balance

Explanation

Arjun

ABC Limited account

The Table of ABC Limited Account
DateDetailsDollar $DateDetailsDollar $
Dec 6Bank A/c40002019

Dec 1

Balance b/d4125
Dec 6Discount A/c125Dec 7Purchases A/c7200
Dec 17Purchases Return A/c595
Dec 31Balance c/d6605
1132511325

XYZ Limited account

The Table of ABC Limited Account
DateDetailsDollar $DateDetailsDollar $
2019

Dec 25

Purchases Returns A/c3401 Dec 2019Balance b/d1750
Dec 31Discount A/c79Dec 21Purchases A/c2550
Dec 31Bank A/c3881
43004300

Discount Received from XYZ Ltd.

Purchases Account

The Table of ABC Limited Account
DateDetailsDollar $DateDetailsDollar $
2019

Dec 1

Balance b/d46500Dec 31Profit & Loss A/c56250
Dec 7ABC Ltd.7200
Dec 21XYZ Ltd2550
5625056250

Purchases Returns Account

The Table of ABC Limited Account
DateDetailsDollar $DateDetailsDollar $
2019

Dec 31

Profit & Loss A/c81602019

Dec 1

Balance b/d7225
Dec 17ABC Ltd.595
Dec 25XYZ Ltd.340
81608160

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