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?
A$2020 overdraft
B$6580 overdraft
C$7150 overdraft
D$7580 overdraft
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of fundamentals of accounting within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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