ACC1022

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:  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 Cost of Sales column?

• R2 880

• R3 600

• R3 000

 

What is a debtor?  

• A person who owes money to the business

• A book of first entry

• The accounting cycle