Cambridge IGCSE and O Level Accounting

Worksheet 2.1: Introducing business

documents

1 Tara is a credit customer of William. They exchanged the following

documents.

Complete the table to name the person issuing each document and the
purpose of each document.

Document Person issuing the Purpose of the document

document
Invoice
Debit note
Credit note
Statement of account
Cheque
Receipt

2 a Insert the missing words or figures in i to viii on the following 1

document.

INVOICE
Vexpar Painting Suppliers
Dalesville Retail Park
Dalesville
Suit All Paint Shop
Calderville 24 August 20-9

Quantity Description Unit price Amount

$ $
4 10 litre drums white emulsion 16 i.............
ii............. 212 litre white gloss 10 60
2 Pack of mixed size brushes iii............. 16
iv.............
Less 20% v............. discount vi.............
vii............
Terms: 212 % viii............. discount if
account paid by 30 September 20-9

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Cambridge IGCSE and O Level Accounting

b Name the business receiving the invoice ........................................................

c Calculate the amount paid if the invoice was settled on

18 September 20-9

.........................................................................................................................................

.........................................................................................................................................

3 The following document was issued on 26 August 20-9.

SUIT ALL PAINT SHOP, CALDERVILLE

DEBIT NOTE
Vexpar Painting Suppliers
Dalesville Retail Park
Dalesville 26 August 20-9

Description Unit price Amount

$ $
1 10 litre drum white emulsion 16.00 16.00
Less 20% trade discount 3.20 2
12.80
Seal broken on drum

a Name the business issuing the debit note ......................................................

b State why the debit note was issued .................................................................

.........................................................................................................................................

c Name the book of prime entry in which Vexpar would record this
document and give a reason for your answer ................................................

.........................................................................................................................................

d State why trade discount was shown as a deduction on the debit

note ...............................................................................................................................

.........................................................................................................................................

.........................................................................................................................................

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Cambridge IGCSE and O Level Accounting

4 On 1 March 20-4 Nehjat sold goods on credit to Myra. On 4 March Myra

returned some of the goods. They exchanged various documents in
March 20-4.

a Complete the table to name the entries made in the ledger of each
trader. If no entry is necessary write ‘no entry’.

Nehjat’s books Myra’s books

Document Account Account Account Account
debited credited debited credited
Invoice
Debit note
Credit note
Statement of
account

b Name the ledger in which Nehjat would maintain Myra’s

account ........................................................................................................................

c If the account was settled on 6 April 20-4, state whether Myra’s 3

account in Nehjat’s ledger would have a debit or a credit balance on
1 April 20-4 .................................................................................................................

d Explain why Myra may be allowed both trade discount and cash
discount .........................................................................................................................

.........................................................................................................................................

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