2020 SACSS 3N POA EOY P2 Q4

2020 SACSS 3N POA EOY P2 Q4

4 Keerthana Store buys electronic goods from Yubo Trading on credit.  On 1 August 2020, the ledger account of Yubo Trading in the books of Keerthana Store showed a credit balance of $2300. The following transactions took place in the month of August.

2020

 

Aug 3

Purchased goods  from Yubo Trading on credit for $12 000.

        6

Returned $300 of goods to Yubo Trading.

      18        

Paid Yubo Trading by cheque for amount owing on 1 August 2020.

REQUIRED

a. Define credit transactions.

[1]

b. Prepare Trade payable – Yubo Trading account as it would appear in Keerthana Store’s books.  Bring the balance down to the next month.

[5]

c. State the source document used to record the transactions on:

[3]

i. August 3

ii. August 6

iii. August 18

d. Give two reasons why goods were returned on August 6.

[2]

[TOTAL 11]

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Optio, neque qui velit. Magni dolorum quidem ipsam eligendi, totam, facilis laudantium cum accusamus ullam voluptatibus commodi numquam, error, est. Ea, consequatur.

Credit transactions are transactions where payment is postponed to a future date.

(i) August 3  - Invoice

(ii) August 6  - Credit Note

(iii) August 18- Receipt / Bank Statement / Payment Voucher

Goods were returned on 6 August as they were

               -   damaged or defective √

              

               -   of the wrong specifications: √

                   (eg  wrong brand, wrong size or wrong colour)

Related Articles