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This is a Purchasing, Business Documents and Bookkeeping Question - Junior Cycle Business Studies - Question 2 - 2009
Question 2
This is a Purchasing, Business Documents and Bookkeeping Question. Answer all parts of this question: (A) (i) Other than the price of goods, trade discount and the... show full transcript
Worked Solution & Example Answer:This is a Purchasing, Business Documents and Bookkeeping Question - Junior Cycle Business Studies - Question 2 - 2009
Step 1
Other than the price of goods, trade discount and the rate of VAT, name three pieces of information the purchaser would expect to find in a quotation.
Answer
Three pieces of information that a purchaser would expect to find in a quotation include:
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Description of Goods / model numbers: This indicates what the goods are and their specific identifiers, which help ensure that the correct products are being ordered.
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Terms/Methods of Payment: This includes details about how payment can be made, payment deadlines, and conditions surrounding the payment process.
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Date the Quotation is valid for: This specifies how long the prices and terms outlined in the quotation remain effective, ensuring that both parties are aware of the timeframe for acceptance.
Step 2
What two procedures would you recommend to a business when processing quotations received?
Answer
The two procedures I would recommend are:
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Compare with letter of enquiry: It's essential to verify that the details in the quotation match the original request, ensuring accuracy in the pricing and specifications of goods.
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File the quotation: Keeping a record of all received quotations aids in future reference, helps track which suppliers were contacted, and can be useful for audits and compliance.
Step 3
Complete the Order Form No. 45 on the sheet supplied with this paper.
Answer
ORDER No. 45
CASEY FOOTWEAR Ltd
19 Dublin Street
Sligo
Quotation No.: 72
Date: 19/05/2009
| Quantity | Description | Price Each (€) | Total (€) |
|---|---|---|---|
| 60 | White trainers assorted sizes | 50 | 3000 |
| 30 | Green Wellingtons assorted sizes | 20 | 600 |
| 10 | House Shoes assorted sizes | 10 | 100 |
Total Amount Due: €3700 Terms: 20% Trade Discount; 21.5% VAT
Step 4
Complete the Credit Note No. 32 on 4 June 2009 on the sheet supplied with this paper.
Answer
CREDIT NOTE No. 32
FEETRIGHT Ltd
30 Castlebear Rd
Ballina, Co. Mayo
Date: 04/06/2009
Order No.: 45
| Quantity | Description | Price Each (€) | Total (€) |
|---|---|---|---|
| 10 | Trainers (yellow) | 50 | 500 |
Total (Excluding VAT): €500
Trade Discount: €100
VAT (17%): €86
Total (Including VAT): €486
Step 5