2020 PHS 3E POA EOY P1 Q2
Additional information
REQUIRED
ai. Explain the term “credit sales”.
[1]
ii. Suggest a reason for business to sell goods on credit.
[1]
b. State the ledger in which Soh Ling would keep Hui Wen’s account.
[1]
The following account was extracted from Soh Ling’s books.
Trade Receivable Hui Wen account
Date | Particulars | DR $ | CR $ | BAL $ |
2020 Jun 1 |
Balance b/d |
1 450 Dr | ||
8 | 6 000 | |||
11 | 400 | |||
25 | Cash at bank | 1 421 | ||
25 | 29 |
REQUIRED
b. State the ledger in which Soh Ling would keep Hui Wen’s account.
[4]
i. Jun 8
ii. Jun 11
iii. Jun 25
c. State the documents issued by Soh Ling to Hui Wen on
[2]
i. Jun 8
ii. Jun 11
d. Calculate the amount owed by Hui Wen to Soh Ling on Jun 30, 2020.
[1]
Soh Ling shared on her credit policies as follows:
1. Credit customers whose purchases are above $10 000 receive a 10% discount.
2. Credit customers who pay the bill within 30 days receive another 2% discount.
REQUIRED
e. Explain two differences between the two types of discount described above.
[2]
[TOTAL 12]