The newest 20 of 21 written questions. Open one to see it on the real paper.
Advise the directors of AY Limited whether or not delaying payments to their trade payables would be a good way to secure the purchase of the equipment. Justify your answer by providing points for and against delaying payments to their trade payables.
See it on the paper →cash discount (i)
See it on the paper →trade discount. Jenny has received goods from one of her credit suppliers. When she inspected the goods, she found they were faulty. REQUIRED
See it on the paper →Advise Rushil whether or not he should allow his credit customers a cash discount if they make payment to him within 21 days. Justify your answer with arguments for and against Rushil allowing his credit customers a cash discount if they make payment to him within 21 days.
See it on the paper →Advise Talula whether or not she should accept card payments. Justify your answer by providing two arguments for and two arguments against Talula accepting debit and credit card payments. Sheila, who rents part of Talula’s premises, has asked Talula if she would be interested in forming a partnership. REQUIRED
See it on the paper →Prepare the rent and rates account for the year ended 31 March 2025. Balance the account and bring down the balances at 1 April 2025. Jasmine Rent and rates account Date Details $ Date Details $ At 31 March 2025, Jasmine had a bank overdraft of $2620. REQUIRED
See it on the paper →What does the credit balance in the bank on 1 September 2024 represent?
See it on the paper →the total amount of cash discount which Addo allowed in April 2024.
See it on the paper →Advise Addo whether or not he should make these changes to his credit terms. Justify your answer by providing two advantages and two disadvantages of changing his credit terms.
See it on the paper →Prepare the rent payable account for the year ended 30 September 2023. Balance the account at 30 September 2023 and bring down the balance at 1 October 2023. Logan Rent payable account Date Details $ Date Details $
See it on the paper →State one way Shvan could pay his suppliers, from his bank account, other than by cheque.
See it on the paper →Advise Shvan whether he should stop using cash. Justify your answer by providing two advantages and two disadvantages of stopping using cash.
See it on the paper →Prepare the following ledger accounts for the year ended 31 March 2022. Balance the accounts and bring down the balances on 1 April 2022. RB Insurance account Date Details $ Date Details $ Commission receivable account Date Details $ Date Details $
See it on the paper →the cash discount
See it on the paper →the amount paid to the supplier JP
See it on the paper →Complete the table below indicating with a tick (✓) the effect of each type of discount on gross profit and profit for the year. Discount allowed increase decrease no effect increase decrease no effect gross profit profit for the year Discount received gross profit profit for the year
See it on the paper →Advise Nakul whether or not he should take longer to pay his suppliers. Justify your answer by providing two advantages and two disadvantages.
See it on the paper →Prepare the following accounts for the year ended 31 December 2020. Balance each account and bring down the balance on 1 January 2021. Jas Fixtures account Date 2020 Jan 1 Details $ Date Details $ Balance b/d 115 000 Provision for depreciation of fixtures account Date Details $ Date 2020 Jan 1 Details $ Balance b/d 77...
See it on the paper →Advise Razia whether or not she should sell on cash terms only. Justify your answer with two advantages and two disadvantages of selling on cash terms only.
See it on the paper →Delay paying credit suppliers. Eniola’s financial year end is 31 July 2020. She provided the following information about the rent and rates of her business. On 1 August 2019, she owed two months’ rent totalling $900. On the same date, rates of $260 were prepaid up to 30 September 2019. During the year ended 31 July 202...
See it on the paper →A rent payable account had to be prepared. The preparation of an expense account is quite common on examination papers but many candidates gained only half of the available marks. Common errors included: • Inclusion of extraneous items. • Omission of dates. • Showing the payments as one entry rather than two separate entries on different dates. • Incorrect wording such as ‘rent charge’ in lieu of...
— Examiner report, October/November 2023, 7707/23 Q3(c) (Cambridge)
Many candidates offered an acceptable response to the question which asked how a trader could pay suppliers from the bank account without using a cheque.
— Examiner report, May/June 2023, 7707/21 Q1(c)(i) (Cambridge)
A trader required advice on whether he should stop using cash. Candidates were expected to provide two advantages, two disadvantages and a recommendation. Many correctly discussed the advantages of the safety and time factors and the disadvantage that some customers and suppliers may prefer to use cash. Some did mention that bank charges would be incurred rather than increase (not appreciating tha...
— Examiner report, May/June 2023, 7707/21 Q1(c)(ii) (Cambridge)
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