Prepare a Debtors Journal Required: 1. Record the following transactions of Alma Suppliers in the Debtors Journal for May 2015. Close off the journal at the end of the month. 2. Analyse transactions for days 6 and 10. Date Invoice No Name of client Selling Price R520 R1 300 R1 040 May 6 10 Cost Price R260 C56 B Blignaut BB Fashions C. Mokoena BB Fashions C57 C58 R650 R520 R780 16 23 C59 R1 560 Answer sheet: Debtors Journal of S for Day 1. DJ1 Doc Details Fol Sales Cost of Sales 2. Effect on the accounting equation: + Dr ASSETS - Cr -Dr OWNERS EQUITY +Cr -Dr LIABILITIES +Cr ay Effect Reason Effect Reason
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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