◈ Oracle PrepSign Up Free
A-LevelAccountingThe accounting cycle9706/12 · May/June 2010 · Q21 Mark

A business has a bank overdraft of $4800. It pays for materials invoiced at $3000 less a trade discount of 20% and a settlement discount of 5%. A cheque for $500 is received from a debtor. What is the bank balance after these transactions?

A$2020 overdraft
B$6580 overdraft
C$7150 overdraft
D$7580 overdraft

✓ Correct answer

B: $6580 overdraft

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill The accounting cycle and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2010 Paper 1 Variant 2, question 2.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

The accounting cycleFeb/Mar 20211m

On 1 May, Tom sold an old motor vehicle with a net book value of $10000 to Arnold for $12000. Arnold paid $7500 by ch…

The accounting cycleFeb/Mar 20221m

Which actions are taken in respect of the totals of a three-column cash book at the end of an accounting period?

The accounting cycleFeb/Mar 20231m

Why did Amitav prefer to form a partnership with Lennie rather than set up as a sole trader?

Accounting for non-current assetsFeb/Mar 20211m

Which item is not included as part of the capital cost of a new machine?

Accounting for non-current assetsFeb/Mar 20211m

Why does a business charge depreciation on its non-current assets?

Accounting for non-current assetsFeb/Mar 20211m

The net book value of motor vehicles of a company is shown. beginning of the year end of the year $312000 $305000 D…

← Browse all past-paper questions

© 2026 Oracle Prep