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This is a Purchases, Business Documents and Bookkeeping Question - Junior Cycle Business Studies - Question 2 - 2017
Question 2
This is a Purchases, Business Documents and Bookkeeping Question. Answer all parts of this question: (A) Other than the names and addresses of the seller and buye... show full transcript
Worked Solution & Example Answer:This is a Purchases, Business Documents and Bookkeeping Question - Junior Cycle Business Studies - Question 2 - 2017
Step 1
Other than the names and addresses of the seller and buyer, name three important pieces of information provided in a quotation.
Answer
- The date of the quotation: This ensures that the offer is timely and relevant.
- Rate of discounts: This helps the buyer in evaluating the best deal available.
- Delivery details: This information is crucial for the buyer to understand when they can expect the goods.
Step 2
Explain two reasons why businesses should obtain at least two quotations before purchasing goods or services.
Answer
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To compare prices, quality, and terms of different suppliers: Gathering multiple quotations allows businesses to ensure they are getting the best value for their money and not overpaying for products.
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Effective purchasing/leads to better decision making: More options empower businesses to evaluate various factors such as reliability, service quality, and delivery timelines, which aids in making a well-informed purchasing decision.
Step 3
Calculate the percentage margin on each t-shirt.
Answer
To calculate the percentage margin, use the formula:
ext{Percentage Margin} = rac{ ext{Selling Price} - ext{Cost Price}}{ ext{Selling Price}} imes 100Substituting values:
Cost Price = €1.80 Selling Price = €2.70
ext{Percentage Margin} = rac{2.70 - 1.80}{2.70} imes 100 = 33.33\\%Step 4
Step 5
Complete the Credit Note No. 40 on 13 June 2017 on the sheet supplied with this paper.
Answer
The Credit Note No. 40 will include the necessary details such as:
- Date: 13/06/2017
- To: BINGO Ltd
- Reason: Torn T-shirts
- Total amount adjusted for trade discount and VAT should be calculated based on the original invoice value.
Step 6
Record the issue of the Credit Note No. 40 in the Sales Returns Book of T-SI Ltd on the sheet supplied with this paper.
Answer
The Sales Returns Book entry should detail:
- Date of return
- Credit Note Number: 40
- Details of transaction such as number of t-shirts returned, reason for return, and amount adjusted, including VAT.