2.3. Books of prime entry
A subsection of Accounting, 7707, through 2. Sources and recording of data
Listing 10 of 36 questions
Omer is a trader. The following transactions took place in April 2023. April Paid $1000 into the bank from his own personal money Paid $360 to a supplier, Alexander, by telephone transfer Cash sales, $695, were paid directly into the bank account Purchased goods, $340, on credit from Alexander Paid $68 cash for petrol Paid rent, $400, by standing order Received a cheque, $384, from a credit customer, Esme, in full settlement of an invoice for $400 Paid $323 by cheque to Alexander, having deducted $17 cash discount Purchased goods, $235, on credit from Alexander REQUIRED Complete Omer’s cash book on the page opposite. Balance the cash book and bring down the balances on 1 May 2023. Prepare the account for Alexander for April 2023. Balance the account and bring down the balance at 1 May 2023. Omer Alexander account Date Details $ Date Apr 1 Details Balance b/d $ Omer buys all his supplies from Alexander who does not allow Omer any trade discount. Omer is now considering also purchasing supplies from Tahir who would offer him 3% trade discount but no cash discount. REQUIRED Advise Omer whether he should choose: Option 1 – purchase supplies from Alexander only, or Option 2 – purchase supplies from both Alexander and Tahir Justify your answer by providing three advantages and one disadvantage of the option you have chosen.
7707_s23_qp_22
THEORY
2023
Paper 2, Variant 2
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Questions Discovered
36