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Book Keeping Answers
BOOKKEEPING OBJ:
1-10: CDBBBCDDCB
11-20: CDBACCAAAA
21-30: ACDCDAADAA
31-40: CBBACCACDB
Completed
(1a)
A trading account can be any investment account containing securities, cash or other holdings.
(1b)
(i) Purchase
(ii) Sales
(iii) carriage inward
(iv) Carriage outward
(v) Expenses
(vi) Gross profit
(vii) Net profit
(viii) Opening stock
2a)
What is Discount
In simple terms, Discount is an allowance or
concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.
2bii
(1)Cash discount is an allowance or concession given by the seller to the buyer.
(2) This discount is offered to encourage the buyer for quick payment or settlement.
(3) It is allowed for immediate payment of cash or payment within a short period.
(4) The cash discount is normally shown in the quotation and invoice . It is deductible from the total price and the buyer is requested to pay only to the net amount.
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