O-LevelAccountingAccounting procedures7707/11 · May/June 2017 · Q41 Mark

Sara purchases goods on credit from Zola. Sara owed Zola $400 on 1 May. She paid this on 1 May after deducting a 5% cash discount. Sara made further purchases, $280, during May. What were the opening and closing balances on Sara's statement of account for May? opening balance closing balance $ $ A 380 266 B 380 280 C 400 280 D 400 300

Aopening balance $380, closing balance $266

Bopening balance $380, closing balance $280

Copening balance $400, closing balance $280

Dopening balance $400, closing balance $300

✓ Correct answer

C: opening balance $400, closing balance $280

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2017 Paper 1 Variant 1, question 4.

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