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
| 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 240 (1 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 241 (2 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 242 (3 of 6 Based on Passage)
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)
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
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 1 | Balance b/d | 4125 |
XYZ Limited account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 1 | Balance b/d | 1750 |
Purchases Account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 1 | Balance b/d | 46500 |
Purchases Returns Account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 1 | Balance |
Explanation
Arjun
ABC Limited account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| Dec 6 | Bank A/c | 4000 | 2019 Dec 1 | Balance b/d | 4125 |
| Dec 6 | Discount A/c | 125 | Dec 7 | Purchases A/c | 7200 |
| Dec 17 | Purchases Return A/c | 595 | |||
| Dec 31 | Balance c/d | 6605 | |||
| 11325 | 11325 |
XYZ Limited account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 25 | Purchases Returns A/c | 340 | 1 Dec 2019 | Balance b/d | 1750 |
| Dec 31 | Discount A/c | 79 | Dec 21 | Purchases A/c | 2550 |
| Dec 31 | Bank A/c | 3881 | |||
| 4300 | 4300 |
Discount Received from XYZ Ltd.
Purchases Account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 1 | Balance b/d | 46500 | Dec 31 | Profit & Loss A/c | 56250 |
| Dec 7 | ABC Ltd. | 7200 | |||
| Dec 21 | XYZ Ltd | 2550 | |||
| 56250 | 56250 |
Purchases Returns Account
| Date | Details | Dollar $ | Date | Details | Dollar $ |
| 2019 Dec 31 | Profit & Loss A/c | 8160 | 2019 Dec 1 | Balance b/d | 7225 |
| Dec 17 | ABC Ltd. | 595 | |||
| Dec 25 | XYZ Ltd. | 340 | |||
| 8160 | 8160 |