The information below is extracted from the books of James Brown for the year ended 31st March, 2008. $ Sales 380,800 Purchases 326,000 Return outwards 14,000 Cash received from debtors 178,200 Bills payable accepted 122,000 Returns inward 17,600 Cash paid to creditors 186,000 Bills receivable received 136,000 Discount received 4,000 Bad debit written off 24,000 Reserve for discount to debtors. 2,000 Discount allowed 1,800 Transfers from purchases ledger 26,600 The total of the sales ledger balance on 1st April, 2009 was $90,600 and that of the purchases ledger balance on the same date was $78,600. Prepare sales ledger and purchases ledger adjustment accounts from the above information.
The information below is extracted from the books of James Brown for the year ended 31st March, 2008. $ Sales 380,800 Purchases 326,000 Return outwards 14,000 Cash received from debtors 178,200 Bills payable accepted 122,000 Returns inward 17,600 Cash paid to creditors 186,000 Bills receivable received 136,000 Discount received 4,000 Bad debit written off 24,000 Reserve for discount to debtors. 2,000 Discount allowed 1,800 Transfers from purchases ledger 26,600 The total of the sales ledger balance on 1st April, 2009 was $90,600 and that of the purchases ledger balance on the same date was $78,600. Prepare sales ledger and purchases ledger adjustment accounts from the above information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The information below is extracted from the books of James Brown for the year ended 31st March, 2008.
$
|
Sales |
380,800 |
|
Purchases |
326,000 |
|
Return outwards |
14,000 |
|
Cash received from debtors |
178,200 |
|
Bills payable accepted |
122,000 |
|
Returns inward |
17,600 |
|
Cash paid to creditors |
186,000 |
|
Bills receivable received |
136,000 |
|
Discount received |
4,000 |
|
Bad debit written off |
24,000 |
|
Reserve for discount to debtors. |
2,000 |
|
Discount allowed |
1,800 |
|
Transfers from purchases ledger |
26,600 |
The total of the sales ledger balance on 1st April, 2009 was $90,600 and that of the purchases ledger balance on the same date was $78,600.
Prepare sales ledger and purchases ledger adjustment accounts from the above information.
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