Question

Last month, we received an invoice of $30,000 from HH Ltd for the purchase of goods on credit. One-third of the amount was paid by cheque.

Answer 1

The student's question pertains to an accounting transaction involving a $30,000 invoice with a one-third payment by cheque. This reflects practical knowledge of managing business credits, partial payments, and debts.

Step-by-step explanation:

The subject of the student's question is related to an accounting transaction involving the payment of an invoice by cheque. In the given scenario, a company received a $30,000 invoice from HH Ltd for goods purchased on credit. They paid one-third of the amount by cheque, which means they paid $10,000 and still owe $20,000.

This is a common business situation where understanding partial payments, credits, and debts in accounting is crucial. Businesses often have to manage payables and receivables to maintain a healthy cash flow position. Additionally, catching errors like the one Noel noticed can prevent financial loss and is part of effective financial management.

The student's question pertains to an accounting transaction involving a $30,000 invoice with a one-third payment by cheque. This reflects practical knowledge of managing business credits, partial payments, and debts.