Deoxyfication POA WA1 Practice Paper

Deoxyfication NA/G2 Sec 4 WA1 POA Practice Paper DISCLAIMER: This is not an OFFICIAL paper created by a school. Although this is a practice paper, it may not cover the entire syllabus and marks in questions may differ from actual WA papers. It is advisable to practice using practice papers provided by an OFFICIAL SCHOOL/SOURCE. Some questions has been taken from school papers and worksheets so that you can practice with possible WA questions. Names and numbers in questions has been changed subsequently. Instructions: Do this paper at your own leisure and time. You can redo this paper as many times as you want. The answers for this paper is in the Official Deoxyfication Google Drive provided with this practice paper. Chapters included in this practice paper: - Chapter 10: Trade Receivables - Chapter 12: Trade Payables Total Duration: 1 hour The total marks for this paper is 30.

1. Isaac is a sole trader who buys and sells shoes. He buys goods on credit from Raiden. During May 2024, Isaac had the following transactions with Raiden. May 1 Isaac owed Raiden $1400. 10 Isaac bought goods from Raiden at a list price of $2000, less 10% trade discount. 13 Isaac returned damaged goods bough on 10 October to Raiden, list price of $450. 22 Isaac paid Raiden to settle the amount owed on 1 May by cheque, less 5% cash discount. REQUIRED (a) Define Trade Payables. [1] ____________________________________________________________ ____________________________________________________________ (b) Why do businesses buy on credit instead of paying cash? [2] ____________________________________________________________ ____________________________________________________________ (c) Prepare Raiden’s Account for the month of May 2024 in the books of Isaac. [8] Trade Payable - Raiden Date Particulars Dr Cr Bal 2024 $ $ $ (d) Give one reason why Raiden gave Isaac a discount on 22 May 2024. [1] ____________________________________________________________ ____________________________________________________________

2. On 1 May 20X2, Sigma Trading had the following balance: $ Allowance for impairment of trade receivables 2600 On 9 December 20X2, a credit customer, Aura Co, closed down and the business wrote of its debts amounting to $500. On 30 April 20X3, the trade receivables balance was $55 000. The business decides to make an allowance for impairment of trade receivables based on 5% of its trade receivables.