During the month of January, the transactions below occurred: Bought stock on cr

Question

During the month of January, the transactions below occurred: Bought stock on credit from L Raja, $700. Sold goods on credit on Johnson, $520. Sold one of the motor vans on credit to B, Mcintosh, $2,300. Cash sales $375. Bought goods on credit from v. Lalla, $170. Returned faulty goods to L. Raja, $160. Purchased another motor van costing $4,200 from Samson Motors. We paid $1,000 cahs immediately and owed the remaining amount. Paid S. Denna $460 by cheque. Prepare the following books of prime entry from the information given Post the entries from the journals to the accounts in the appropriate ledgers. Complete the following table.

Explanation / Answer

Solution:

The answer to the Question 14 -

Source document Books of primary entry Accounts Effected Ledgers effected a Sales Invoice Sales day book Sales, accounts accounts receivable, cash General, Debtors, b Purchase invoice Purchase day book Purchases, accounta payable, cash General, creditors c Credit note Journal Accounts payable General, creditors d Cash receipt Cash book cash account mainly General e Cheque counterfoil Cash book cash account mainly General

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