2020 SACSS 3N POA EOY P2 Q4
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]
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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)