2020 JYSS 3N POA EOY P2 Q1
1 Tania is a retailer, selling bags.
REQUIRED
a. Classify the items in the table by placing a tick (√) in the appropriate column.
[6]
Expenses | ||||
E.g. Motor vehicle | √ | |||
Trade payables | ||||
Service fees |
On 12 January 2020, Tania sold bags to Wendy at a list price of $2500, less 15% trade discount.
REQUIRED
b. Prepare the statement of financial position as at 30 September 2020.
[2]
c. Calculate the amount owed by Wendy.
[2]
[TOTAL 10]
SOLUTION
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a)
Expenses | ||||
√ | ||||
√ | ||||
√ | ||||
√ | ||||
Trade payables | √ | |||
Service fees | √ |
b)
To encourage customers to buy in bulk/big quantities.
To clear inventory that may be out of trend.
c)
Trade discount = 15% *2500 = $375
Amount owed by Wendy = $2500-$375 = $2125