A-LevelAccountingFundamentals of AccountingMay/June 2010Paper 1 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?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: $6580 overdraft.

Q: What topic does this question test?

This question tests Fundamentals of Accounting in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$2020 overdraft

B$6580 overdraft

C$7150 overdraft

D$7580 overdraft

✓ Correct Answer

The correct answer is B: $6580 overdraft

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Fundamentals of Accounting in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2010 examination, Paper 1 Variant 2.

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