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O-Level Trade payables
What the O-Level syllabus expects for Trade payables, and how to practise it.
What the syllabus expects
- Weigh accounting and non-accounting information to decide which supplier to purchase from
Scope: Non-accounting factors limited to local/overseas supplier, after-sales service, return policy, online vs brick-and-mortar, reputation and warranty - Define trade discount
- Explain the reason a trade discount is obtained
- Define cash discount
- Explain the reason a cash discount is obtained
- Tell apart trade discounts and cash discounts
- Compute the trade discount when goods are bought and when they are returned
- Compute the cash discount taken at payment
- Write the journal entries for transactions that move trade payables
Scope: Covers credit purchase of goods, services and non-current assets, returns, discounts, payments and freight - Draw up a trade payables ledger account
- Read a trade payables ledger account
- Work out how a cash discount affects the period's profit/loss and trade payables
- Produce a Statement of Financial Performance extract showing discount received
- Produce a Statement of Financial Position extract showing trade payables
More O-Level Principles of Accounts topics
Roles of accounting and of accountants · Stakeholders and what they need in order to decide · Judging profitability · Judging liquidity · Judging efficiency of inventory and trade receivables management · Kinds of business · all of O-Level Principles of Accounts