Gr9 EMS | Term 2 Lesson 1 | Debtor, Concepts, Credit Transaction

State whether the following statement is true or false? Credit sales are when customers buy goods and only pays for them later.

• True

• False

The following statement explains the credit limit.*

• If you charge a debtor interest for late payment

• If you give the debtor discount

• The maximum amount the debtor can owe on a specific date

• How long can the debtor pays his/her account

Debtors is a/an …*

• Fixed asset

• Current asset

• Income

• Expense

 What is the source document and journal of the following transaction:  Sold goods on credit to Pieter  Potgieter, R6 000.

• Original invoice and CRJ

• Duplicate Receipt and CRJ

• Duplicate invoice and DJ

• Original invoice and DJ

What is the source document and journal of the following transaction:  Received payment on account from Pieter Potgieter, R2 500.

• Original invoice and CRJ

• Duplicate receipt and CRJ

• Duplicate invoice and DJ

• Original invoice and DJ

 Complete the following transaction. The business uses a profit mark-up of 20% on cost. Sold goods on credit to Smith Traders for R3 600. What amount are you going to write in the Sales column?

• R2 880

• R3 600

• R3 000

• R3 000

Complete the following transaction. The business uses a profit mark-up of 20% on cost. Sold goods on credit to Smith Traders for R3 600. What amount are you going to write in the Cost of Sales column?

• R2 880

• R3 600

• R3 000

• None of the above

 Complete the following transaction. Smith Traders paid R1 000 as partial payment on his account. Which columns are you going to write the R1 000?

• Analysis of receipts & Bank

• Bank & Debtors control

• Analysis of receipts, Bank & Debtors control

• None of the above

What is a debtor?  *

• A person who owes money to the business

• A book of first entry

• The accounting cycle

• None of the above

The purpose of the National Credit Act is:*

• To educate consumers

• To protect consumers

• To provide debt counselling

• All of the above