01-Sep-21 Allowance for Doubtful Accounts Accounts Receivable (P Mullen) To record written-off bad debt 05-Sep-21 Accounts Payable - Syme Ltd Purchase returns and allowances £105 £105 £150 £150 To record unsuitable office fixtures returned to supplier 10-Sep-21 Allowance for Doubtful Accounts Accounts Receivable (M. Abel) £311 £131
01-Sep-21 Allowance for Doubtful Accounts Accounts Receivable (P Mullen) To record written-off bad debt 05-Sep-21 Accounts Payable - Syme Ltd Purchase returns and allowances £105 £105 £150 £150 To record unsuitable office fixtures returned to supplier 10-Sep-21 Allowance for Doubtful Accounts Accounts Receivable (M. Abel) £311 £131
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 33P
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Question
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Please find attached the question and answer for jounal entry. Kindly review and please let me know if the answer is correct
![Date
Description
Debit
Credit
01-Sep-21 Allowance for Doubtful Accounts
Accounts Receivable (P Mullen)
To record written-off bad debt
05-Sep-21 Accounts Payable - Syme Ltd
Purchase returns and allowances
f105
£105
£150
£150
To record unsuitable office fixtures returned to supplier
10-Sep-21 Allowance for Doubtful Accounts
Accounts Receivable (M. Abel)
£311
£131
Cash
£180
To record write-off customer's account
18-Sep-21 Machinery A/C
£1,800
Accounts Payable - Brown Ltd.
£1,200
Bank
£500
Cash
£100
To record the purchase of machinery
26-Sep-21 Bank
£600
Accounts Payable - Brown Ltd.
To record payment made to machinery supplier
£600
28-Sep-21 Bank
£130
Accounts Receivable - Insurance A/C
£70
Bank
£60
To record payment made towards insurance bill
£3,096
£3,096](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21df9753-2c4e-462f-bef1-0e83e7aa6e11%2F74676ade-aa34-461c-85db-71d843343879%2Fnmc6rve_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Date
Description
Debit
Credit
01-Sep-21 Allowance for Doubtful Accounts
Accounts Receivable (P Mullen)
To record written-off bad debt
05-Sep-21 Accounts Payable - Syme Ltd
Purchase returns and allowances
f105
£105
£150
£150
To record unsuitable office fixtures returned to supplier
10-Sep-21 Allowance for Doubtful Accounts
Accounts Receivable (M. Abel)
£311
£131
Cash
£180
To record write-off customer's account
18-Sep-21 Machinery A/C
£1,800
Accounts Payable - Brown Ltd.
£1,200
Bank
£500
Cash
£100
To record the purchase of machinery
26-Sep-21 Bank
£600
Accounts Payable - Brown Ltd.
To record payment made to machinery supplier
£600
28-Sep-21 Bank
£130
Accounts Receivable - Insurance A/C
£70
Bank
£60
To record payment made towards insurance bill
£3,096
£3,096
![F Polk, after being in Bakery business for some years without keeping proper records, now decides
to keep a double entry set of books. On 1 September 2021 he establishes that his assets and
liabilities are as follows: Assets: Van £5,700, Fixtures £2,800, Stock £5,200, Debtors -P Mullen
£105, M Abel £311, Bank £1060, Cash £85. Liabilities: Creditors - Syme Ltd £229, A Hill £80.
(1)
He is not sure about Journal entries for the following transactions in September 2021 as follows:
Sep 1: A debt of £105 owing from P Mullen was written off as a bad debt
Sep 5: Office Fixtures originally bought by credit for £150 was returned to the supplier Syme Ltd., as
it was unsuitable. Full allowance will be given for this.
Sep 10: The business is owed £311 by M. Abel. He is declared bankrupt and we only received
£180 cash in full settlement of the debt.
Page | 9
Sep 18: Bought a Machinery from Brown Ltd. to use in the company. The total purchasing value of
the machine is £1,800. The owner paid £100 cash, £500 by issuing a cheque and rest of
the purchasing value would remain as credit.
Sep 26 The owner paid half of the machinery debt to Brown Ltd. by issuing a cheque.
Sep 28: The owner paid £130 an insurance bill via cheque thinking that it was in respect of the
business. We now discover that £70 of the amount paid was in fact insurance of our private
house.
Required:
You are required to show the Journal entries (only) (with narrative) necessary to record the items
which occur in Sep 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21df9753-2c4e-462f-bef1-0e83e7aa6e11%2F74676ade-aa34-461c-85db-71d843343879%2Fq7lt65_processed.jpeg&w=3840&q=75)
Transcribed Image Text:F Polk, after being in Bakery business for some years without keeping proper records, now decides
to keep a double entry set of books. On 1 September 2021 he establishes that his assets and
liabilities are as follows: Assets: Van £5,700, Fixtures £2,800, Stock £5,200, Debtors -P Mullen
£105, M Abel £311, Bank £1060, Cash £85. Liabilities: Creditors - Syme Ltd £229, A Hill £80.
(1)
He is not sure about Journal entries for the following transactions in September 2021 as follows:
Sep 1: A debt of £105 owing from P Mullen was written off as a bad debt
Sep 5: Office Fixtures originally bought by credit for £150 was returned to the supplier Syme Ltd., as
it was unsuitable. Full allowance will be given for this.
Sep 10: The business is owed £311 by M. Abel. He is declared bankrupt and we only received
£180 cash in full settlement of the debt.
Page | 9
Sep 18: Bought a Machinery from Brown Ltd. to use in the company. The total purchasing value of
the machine is £1,800. The owner paid £100 cash, £500 by issuing a cheque and rest of
the purchasing value would remain as credit.
Sep 26 The owner paid half of the machinery debt to Brown Ltd. by issuing a cheque.
Sep 28: The owner paid £130 an insurance bill via cheque thinking that it was in respect of the
business. We now discover that £70 of the amount paid was in fact insurance of our private
house.
Required:
You are required to show the Journal entries (only) (with narrative) necessary to record the items
which occur in Sep 2021.
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