Business documents — Paper 1 · IGCSE Accounting (9-1) 0985

6 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or received the following documents in April. $ April 7 invoice 360 12 cheque (after deducting $11 cash discount) 429 13 debit note 50 15 credit note 50 What was the closing balance on the statement of account on 30 April? A $260 B $310 C $321 D $421

1 marks

Answer: B

This question in 0985/11 May/June 2020

9 Which statements about trade discount are correct? 1 It is debited to the supplier’s account. 2 It is only given if the invoice is paid within the period allowed by the supplier. 3 It is shown as a deduction from the price of the goods on an invoice. 4 It is used to encourage bulk buying. A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

1 marks

Answer: D

This question in 0985/11 May/June 2020

7 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or received the following documents in April. $ April 7 invoice 360 12 cheque (after deducting $11 cash discount) 429 13 debit note 50 15 credit note 50 What was the closing balance on the statement of account on 30 April? A $260 B $310 C $321 D $421

1 marks

Answer: B

This question in 0985/12 May/June 2020

8 A business sold goods with a list price of $50 each. The terms of trade were: trade discount for more than 20 items bought 10% cash discount if customer pays within 30 days 4% How much was received in full settlement from a customer who bought 25 items and paid after 35 days? A $900 B $1075 C $1125 D $1200

1 marks

Answer: C

This question in 0985/12 May/June 2020

5 Leah bought goods, $8000, less 15% trade discount. She later returned half of these goods as they were faulty. Which document did Leah issue to the supplier for the returned goods? A credit note for $3400 B debit note for $3400 C credit note for $4000 D debit note for $4000

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2021

6 What is a cheque counterfoil used for? A to make a credit entry in the bank column of a cash book B to make a debit entry in the bank column of a cash book C to send a payment to a supplier D to send proof of payment to a customer

1 marks

Answer: A

This question in 0985/12 Oct/Nov 2021

8 Why does a supplier offer trade discount? A to avoid irrecoverable debts B to encourage bulk buying C to encourage payment in cash D to reward prompt payment

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2021

4 Omar sent a credit note to Miriam for goods returned. How would Miriam record this transaction? account to be debited account to be credited A purchases returns Omar B sales returns Miriam C Omar purchases returns D Miriam sales returns

1 marks

Answer: C

This question in 0985/11 May/June 2022

4 Abdul sells goods to Rekha on credit. Some goods were damaged in transit. Which document would Rekha send to Abdul? A credit note B debit note C invoice D statement of account

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2022

5 What is not shown on an invoice? A amount of trade discount B date payment made C details of goods supplied D terms of payment

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2022

6 Which items are shown on a statement of account? A bank charges B credit notes C debit notes D trade discounts

1 marks

Answer: B

This question in 0985/11 May/June 2023

5 Which document would a supplier issue to a credit customer if the credit customer had returned goods or had been overcharged? A cheque B credit note C debit note D invoice

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2023

29 Elaine is starting a business. She wants to make sure she doesn’t miss out on any cash discount which is offered to her. Which action would help her achieve this? A issuing her invoices promptly B maintaining full accounting records of dealings with suppliers C making purchases in bulk D undertaking credit checks on all prospective customers

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2023

5 Which business documents are not entered in the books of prime entry? 1. credit note 2. debit note 3. invoice 4. statement of account A 1 and 3 B 1 only C 2, 3 and 4 D 2 and 4 only

1 marks

Answer: D

This question in 0985/11 May/June 2024

5 Which business documents are used as sources of information to make entries in the cash book? A bank statement, cheque counterfoil, invoice, paying-in slip B bank statement, cheque counterfoil, invoice, receipt C bank statement, cheque counterfoil, paying-in slip, receipt D cheque counterfoil, paying-in slip, petty cash voucher, receipt

1 marks

Answer: C

This question in 0985/12 May/June 2024

5 Ranjit is a credit customer of Balbir. In April the following activities took place. Balbir sold goods on credit to Ranjit. Ranjit advised Balbir that some of the goods were damaged. Balbir advised Ranjit of a reduction in the amount owing. Which documents were used to record these activities? A debit note, credit note and receipt B invoice, credit note and receipt C invoice, credit note and statement of account D invoice, debit note and credit note

1 marks

Answer: D

This question in 0985/12 Oct/Nov 2024

4 Which document may be used by a business as proof that an invoice has been paid? A credit note B paying-in slip C petty cash voucher D receipt

1 marks

Answer: D

This question in 0985/12 May/June 2025