A-LevelAccountingThe accounting cycle9706/12 · Feb/Mar 2024 · Q41 Mark
Tom bought goods costing $100 on credit from Sam. He returned goods costing $20 as faulty. He deducted a cash discount and paid $76 by cheque in full settlement. Which amounts were recorded in Tom's books of prime entry?
Apurchases journal: $80, purchases returns journal: $0, three-column cash book (bank column): $76
Bpurchases journal: $80, purchases returns journal: $0, three-column cash book (bank column): $80
Cpurchases journal: $100, purchases returns journal: $20, three-column cash book (bank column): $76
Dpurchases journal: $100, purchases returns journal: $20, three-column cash book (bank column): $80
✓ Correct answer
C: purchases journal: $100, purchases returns journal: $20, three-column cash book (bank column): $76
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