1
1 mark
A trader purchases goods with a list price of $600. He receives a trade discount of 20% and a cash discount of 5%. What amount should be entered in the purchases account?
$600
$570
$480
$456
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Business Documentation (Edexcel IGCSE Accounting: Introduction to Bookkeeping & Accounting): Exam Questions
Exam code: 4AC1
2 hours32 questions
2
5 marks
State the source document for each transaction.
Transaction | Source document |
|---|---|
Returned goods to a credit supplier | |
Purchased refreshments for office | |
Received bank interest | |
Purchased non-current asset on credit | |
Issued cheque for personal use |
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3
1 mark
Identify the reason for offering a cash discount.
To encourage bulk buying
To encourage prompt payment
To gain new customers
To reward loyalty
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4
1 mark
Complete the document.
Credit note
Western Road | |||
|---|---|---|---|
KP Wholesalers | No: 1816 | ||
Date: 12 April 2023 | |||
Description | Quantity | Unit cost | Total cost |
Lights | 60 | 37.40 | |
Tyres | 85 | 41.20 | |
Subtotal | |||
Trade discount 20% | |||
Total | |||
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5a
1 mark
On 30 September 2023 Roberto received the following document.
Williams Roberto Date: 30 September 2023 | ||||
Date | Reference | Debit | Credit | Balance |
|---|---|---|---|---|
1 | Balance | 2560 | 2560 | |
5 | Sales | 2390 | 4950 | |
14 | Sales returns | 80 | 4870 | |
24 | Payment received | 1365 | 3505 | |
24 | Discount | 35 | 3470 | |
30 | Balance | 3470 | ||
Amount due | 3470 | |||
State the name of the document.
5b
1 mark
State one reason why this document was issued.
5c
2 marks
State the name of the:
customer
supplier.
5d
1 mark
Calculate the percentage rate of discount on 24 September 2023.
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6
4 marks
State two characteristics of each method of payment.
(i) Standing order
(2)
(ii) Direct debit
(2)
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7
1 mark
Identify the term used to describe an instruction to a bank to make a fixed payment to a supplier on the last day of every month.
Cheque
Credit transfer
Direct debit
Standing order
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8
1 mark
A trader sells 20 items at $8 each to a credit customer less a trade discount of 10%.
The customer returns five of these items.
Identify which amount will be shown on the credit note issued.
$44
$40
$38
$36
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9a
3 marks
Complete the document.
Invoice Shaw Supplies Potter Road Reigate RH2 1BS | |||
Chetsy Ongar Road Addlestone KT13 8AX | No: 1057 | ||
Date: 1 March 2023 | |||
Description | Quantity | Unit cost | Total cost |
|---|---|---|---|
Bikes | 18 | 300 | |
Trade discount 10% | |||
Total | |||
Terms: Cash discount of 5% for payment within 7 days | |||
9b
2 marks
Calculate the amount paid if payment was made on:
(i) 3 March 2023
(1)
(ii) 9 March 2023.
(1)
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10
2 marks
State two reasons for offering a trade discount.
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11
1 mark
Identify which is a reason for offering a cash discount.
Paying in cash
Paying promptly
Purchasing in bulk
Regular customer
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12
5 marks
Complete the document where indicated.
Invoice Jaydey Ltd Langton Drive Hull HU2 4HY | |||
|---|---|---|---|
Pharlap Trading Main Street York YO1 6HS | Invoice No 67025 | ||
Date 18 August 2022 | |||
Quantity | Description | Unit cost | Total cost |
8 | Bookcases | 28.00 | ....................... |
24 | Table lamps | 6.50 | ....................... |
Subtotal | ....................... | ||
Trade discount 20% | ....................... | ||
Total | ....................... | ||
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13
2 marks
State two features of a direct debit.
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14
5 marks
Identify the source document for each transaction.
Transaction | Source document |
|---|---|
Returned goods to a credit supplier | |
Purchased refreshments for the office | |
Received bank interest | |
Purchased a non-current asset on credit | |
Received a cheque from a credit customer |
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15
2 marks
State two reasons why a customer’s cheque may be dishonoured by the bank.
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16
1 mark
Which document from a supplier reduces the amount owed by a customer?
Credit note
Invoice
Purchase order
Statement
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17
5 marks
Complete the document.
Invoice DH Trading 25 Swallow Lane Birmingham B27 3MH | |||
|---|---|---|---|
Myhill Co Westwood Road Beverley HU17 7AB | Invoice No 1503 | ||
Date 14 July 2020 | |||
Quantity | Description | Unit Cost $ | Total Cost $ |
150 | Packing cases | 6.80 | ...................... |
48 | Rolls of tape | 2.50 | ...................... |
Subtotal | ...................... | ||
Trade discount 25% | ...................... | ||
Total | ...................... | ||
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18
1 mark
Identify when a credit note is issued to a customer.
To correct an overcharge on an invoice
To correct an undercharge on an invoice
When goods are sold for cash
When goods are sold for credit
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19
1 mark
Gina sells goods on credit to Kimi for $600. Gina’s terms of trade are 20% trade discount plus 5% cash discount for prompt settlement.
Identify which entry in Gina's books is correct.
$480 in the purchases day book
$480 in the sales day book
$456 in the purchases day book
$456 in the sales day book
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20
5 marks
Leon produced the following invoice.
Complete the document where indicated.
Invoice Leon Spring Street Newport NP19 3HS | |||
|---|---|---|---|
Phoenix 22 Kerry Drive Bradford BD8 6GK | No. 3240 | ||
Date 29 March 2021 | |||
Quantity | Description | Unit cost $ | Total cost $ |
6 | Mobile phones | 85.50 | ................ |
36 | USB cables | 2.20 | ................ |
Subtotal | ................ | ||
Trade discount 25% | ................ | ||
Total | ................ | ||
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21
8 marks
Complete the table below to show the source document and the book of original entry for each transaction.
Transaction | Source document | Book of original entry |
|---|---|---|
Paid bank charges | ||
Returned damaged goods to a credit supplier | ||
Purchased a new motor vehicle on credit | ||
Payment to a supplier by credit transfer |
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22
1 mark
Which document is sent to credit customers at the end of each month?
Credit note
Remittance advice
Sales invoice
Statement of account
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23
1 mark
Which document issued by the seller summarises the transactions for the month?
Credit note
Purchase invoice
Sales invoice
Statement of account
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24
1 mark
Identify when a customer would receive a cash discount.
Bulk purchases
Payment made by cash
Payment made within agreed time
Regular purchases
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25
5 marks
Complete the document.
Invoice GLK Ltd Moreton Road Norwich NR1 2BP | |||
|---|---|---|---|
Frank Waites 22 Redland Drive Lewes BN7 2DH | Number: S2703 | ||
Date: 14 April 2020 | |||
Description | Quantity | Unit cost $ | Total cost $ |
Filing cabinets | 8 | 64.55 | .......................... |
Office chairs | 22 | 19.80 | .......................... |
Subtotal | .......................... | ||
Trade discount 15% | .......................... | ||
Total | .......................... | ||
Terms: 2% discount for 30 days settlement. | .......................... | ||
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26
1 mark
Which one of the following source documents would show bank interest?
Bank statement
Cheque counterfoil
Credit note
Invoice
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27
5 marks
Complete the document where indicated.
Invoice XS Supplies Water Street Birmingham B18 3WY | |||
|---|---|---|---|
Lee Trading 16 Outwood Road Leeds LS11 2AB | Invoice No 3240 | ||
Date 27 November 2019 | |||
Quantity | Description | Unit cost $ | Total cost $ |
150 | CD cases | 1.20 | .......................... |
400 | CD label sheets | 0.40 | .......................... |
Subtotal | .......................... | ||
Trade discount 20% | .......................... | ||
Total | .......................... | ||
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28
6 marks
Isabella owns a business selling clothing.
State the business document and the book of original entry for each transaction in Isabella’s books of account.
Transaction | Business document | Book of original entry |
|---|---|---|
Purchased a new motor vehicle on credit, $5 000 | ||
Purchased postage stamps, $3 | ||
Sold goods for cash, $910 |
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29
2 marks
State one purpose of:
(i) a statement of account
(1)
(ii) a remittance advice.
(1)
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30
1 mark
Which one of the following is a reason for offering a cash discount?
Bulk buying
Paying in cash
Prompt payment
Repeat business
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31
1 mark
What is indicated when a business’s bank statement shows a debit balance?
Bank is a creditor to the business
Bank is a debtor to the business
Bank made payment by credit transfer
Bank received payment by credit transfer
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32
5 marks
Complete the following document.
Credit Note Supreme Furniture 23 High Road London SW7 6BY | |||
|---|---|---|---|
John Win 104 May Cottage London NS17 4BQ | Credit Note No. 122 | ||
Date 15 April 2019 | |||
Description | Quantity | Unit cost $ | Total cost $ |
Dining chairs | 4 | 27.50 | |
Sofa chairs | 2 | 212.50 | |
Subtotal | |||
Trade discount 10% | |||
Total | |||
Reason: Faulty goods | |||
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