O Level Accounting (7707)•7707/12/M/J/22
Explanation
Interpreting supplier ledger to find period's net purchases Steps:
- Identify the account as Amraz's in Leah's purchases ledger, with credit entries for purchases.
- Recognize "purchases b/d $1000" as brought forward purchases from prior to April.
- Note "purchases $3000" as cumulative purchases including April.
- Calculate April net purchases by subtracting prior amount: 1000 = $2000 (no separate trade discount indicated for April).
Why C is correct:
- Net purchases for the period equal current purchases added in April, found by deducting brought-forward amount from cumulative total per ledger convention.
Why the others are wrong:
- A: Discount c/d 100 trade discount.
- B: Opening is 200 owed by Amraz on Apr 1.
Final answer: C
Topic: Other payables and other receivables
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