Quelpr
1 markBooks of Original Entry and Discounts

CSEC Principles of Accounts · January 2010 · Paper 2 · Question 2(b)(ii)

In June 2009, Mr. Clouden purchased goods on credit from three suppliers (Harris & Sons Ltd, L. J. Enterprises, and A. Harden), each offering trade discount of 10% and cash discount of 3% for payment within one month.

If Mr. Clouden pays L. J. Enterprises within the month, what would be the amount of his cash discount?

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 2(a)(i)Write up and balance Clouden's three-column cash book.[12 marks]
  2. 2(a)(ii)Indicate what the closing balance on the Bank Account signifies.[1 mark]
  3. 2(b)(i)Record the invoices received by Mr. Clouden in the appropriate Day Book showing correct net amounts owed.[6 marks]

More practice: the rest of this paper · more Books of Original Entry and Discounts questions · all CSEC Principles of Accounts past papers