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]

 

Income 

Expenses 

Assets

Liabilities

E.g. Motor vehicle

  

 

Cost of sales 

    

Depreciation 

    

Discount allowed

    

Inventory

    

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)

 



Income 

Expenses 

Assets

Liabilities

Cost of sales 

 

  

Depreciation 

 

  

Discount allowed

 

  

Inventory

  

 

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