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SingaporeAccountingQuick questions
Books of Prime Entry and Ledgers
Quick questions on Source documents: N(A)-Level Principles of Accounts
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is trade discount?Show answer
An invoice may show a trade discount, a reduction off the list price for buying in bulk or as a trade customer. Trade discount is deducted before recording: you record the net amount and never show the discount in the ledger. This is different from cash (settlement) discount, which is for prompt payment and is recorded.
What is q1?Show answer
State the source document for goods bought on credit. [1 mark]
What is q2?Show answer
An invoice shows \60025\%$ trade discount. State the amount recorded. [2 marks]
What is q3?Show answer
Explain the difference between a credit note issued and a credit note received. [2 marks]
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