please help.. its the first time am doing accounts :(

[NehaKush]

1. A cash discount is best described as a reduction in the sum to be paid:
A. If payment is made either by cash or cheque
B. If purchases are made for cash, not on credit
C. If payment is made by cash, not cheque
D. If payment is made within a previously agreed period

2. Discounts received are:
A. Deducted by us when we pay our accounts
B. Deducted when we receive cash
C. Given by us when we sell goods on credit
D. None of these

3. The total of the ‘Discounts Allowed’ column in the Cash Book is posted to:
A. The debit of the Discounts Received account
B. The credit of the Discounts Received account
C. The debit of the Discounts Allowed account
D. The credit of the Discounts Allowed account

4. Sales invoices are first entered in:
A. The Sales Journal
B. The Sales Account
C. The Purchases Journal
D. The Cash Book

5. The total of the Sales Journal is entered on:
A. The credit side of the General Account in the Sales Ledger
B. The debit side of the Sales Account in the General Ledger
C. The debit side of the Sales Day Book
D. The credit side of the Sales Account in the General Ledger

6. Given a purchases invoice showing 5 items of £80 each, less trade discount of 25 per cent and cash discount of 5 per cent, if paid within the credit period, your cheque would be made out for:
A. £280
B. £285
C. £260
D. None of these


1.

4.
7.

 

[SamiaSaad]

1D 2C 3C 4A 5B
I'm not sure about 6 but hope this help

 

[i like suicide]

1. D
2. A
3. C
4. A
5. D
6. A

 

[geni0usheeni]

1. D
2. A
3. C
4. A
5. D
6. B (80*5=400...) ( 400 - 25%*400=300....) (300 - 5%*300=285)
Hope it helps u new commer...

 

[i like suicide]

1. D
2. A
3. C
4. A
5. D
6. A (80*5=400...) ( 400 - 25%*400=300....) (300 - 5%*300=285)
Hope it helps u new commer...

don't u think the cash discount % will be applied on the orignal cost of all ( 400* 5/100) and this amount will be subtracted from 300

 

[geni0usheeni]

don't u think the cash discount % will be applied on the orignal cost of all ( 400* 5/100) and this amount will be subtracted from 300

Im sry... i didnt write the ans right.... but cash discount is deducted frm the 300... im sure... the ans is B in my opinon..