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6 marksBooks of Original Entry and Discounts

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

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.

Record the invoices received by Mr. Clouden in the appropriate Day Book showing correct net amounts owed.

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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)(ii)If Mr. Clouden pays L. J. Enterprises within the month, what would be the amount of his cash discount?[1 mark]

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