Accounting 0452 · IGCSE · Other payables and other receivables

Other payables and other receivables — practice question

The balances below were drawn from RB’s accounts, with RB acting as a trader. 1 April 2021: Insurance $2500 prepaid; Commission receivable $700 owing. 31 March 2022: Insurance $850 prepaid; Commission receivable $630 owing. The transactions for the year ended 31 March 2022 are listed below. Every receipt and every payment went through the bank account. Insurance paid $15300 Insurance refund $600 Commission receivable $7200
(a)[8]

Prepare the following ledger accounts for the year ended 31 March 2022. Balance the accounts and carry the balances down on 1 April 2022.

(b)[2]

Prepare the insurance and commission receivable figures in RB’s statement of financial position at 31 March 2022.

(c)[3]

Explain why the matching principle matters in preparing RB’s income statement.

(d(i))[1]

Calculate the trade discount amount.

(d(ii))[1]

Calculate the cash discount amount.

(d(iii))[1]

Calculate the amount payable to supplier JP.

(e)[4]

Complete the table below by placing a tick (✓) to show how each type of discount affects gross profit and profit for the year.

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