O-LevelAccountingSources and recording of data7707/21 · Oct/Nov 2018 · Q110 Marks

Lohit is a supplier of goods to Asanka. The following entries require recording in the books of Asanka for the month of August 2018. August 1 Asanka owed Lohit, $90 9 Lohit supplied goods to Asanka, list price $80 less 15% discount 10 Asanka returned goods, list price $20, supplied on 9 August 15 Asanka paid $97 by cheque after deducting $3 discount

(a)Prepare the account of Lohit in the books of Asanka for August 2018. Balance the account and bring down the balance on 1 September 2018. Lohit account Date Details $ Date Details $[5]
(b)Name each of the following:
(b)(i)type of discount allowed by Lohit on 9 August[1]
(b)(ii)book of prime entry in which Lohit would record the transaction on 9 August[1]
(b)(iii)document that Lohit would send to Asanka recording the transaction on 10 August[1]
(b)(iv)sub-division of Lohit's ledger which would contain the account of Asanka[1]
(b)(v)section of Lohit's statement of financial position which would contain the balance on Asanka's account.[1]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

[5] (a) Lohit account: Debit side: August 10 Purchases return 17 (1), August 15 Bank 97, August 15 Discount received 3 (1), August 31 Balance c/d 41 Credit side: August 1 Balance b/d 90 (1), August 9 Purchases 68 (1) Totals: 158 (Debit) / 158 (Credit) Bring down: September 1 Balance b/d 41 (1)of
[1] (b)(i) Trade discount (1)
[1] (b)(ii) Sales journal (1)
[1] (b)(iii) Credit note (1)
[1] (b)(iv) Sales ledger (1)
[1] (b)(v) Current assets (1)

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.