Omer works as a trader.
These transactions occurred during April 2023.
April 3 Deposited $1000 of his own personal funds into the bank
April 7 Paid $360 to supplier Alexander by telephone transfer
April 10 Cash sales of $695 were paid straight into the bank account
April 12 Bought goods on credit from Alexander for $340
April 15 Paid $68 cash for petrol
April 16 Paid rent of $400 by standing order
April 23 Received a cheque for $384 from credit customer Esme in full settlement of an invoice worth $400
April 27 Paid Alexander $323 by cheque after deducting $17 cash discount
April 28 Bought goods on credit from Alexander for $235
(a)[11]
Complete Omer’s cash book on the page opposite, then balance it and bring the balances down on 1 May 2023.
(b)[4]
Prepare Alexander’s account for April 2023. Balance the account and carry the balance down on 1 May 2023.
(c)[5]
Advise Omer whether to go with: Option 1 - purchase supplies from Alexander only, or Option 2 - purchase supplies from both Alexander and Tahir. Support your choice with three advantages and one disadvantage of the option selected.
Worked solution & mark scheme
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