General definitions:

Question 1

What is the difference between creditors and debtors:

Answer 1

creditors= people the business owes money to
debtors= people who owe the business money

Question 2

CP calculation:

Answer 2

CP= SP x 100
————-
100+ M.U

Question 3

SP calculation:

Answer 3

SP= CP x (100+ m.u.)
——————–
100

Question 4

Payment by debtors flow chart

Answer 4

payment by debtors
duplicate receipts
CRJ (under debtors control column)
general ledger and debtors ledger

Question 5

Creditors flow chart

Answer 5

creditors
business purchases on credit/ on account
original credit invoice
creditors journal CJ
general ledger and creditors ledger

Question 6

MU calculation

Answer 6

mu= (profit= sp-cp) 100
—————— x ——
cp 1