Concept explainers
1.
Open the general ledger accounts and
1.
Explanation of Solution
Ledgers:
Ledgers are T-accounts to which
Preparation of cash account in general ledger:
Cash | Page 101 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 27,400 |
Table (1)
Preparation of accounts receivable account in general ledger:
Accounts Receivable | Page 111 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 4,300 |
Table (2)
Preparation of sales account in general ledger:
Sales | Page 401 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (3)
Preparation of sales returns and allowance account in general ledger:
Sales Returns and Allowances | Page 451 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (4)
Preparation of sales discount account in general ledger:
Sales Discount | Page 452 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (5)
Preparation of accounts receivable/AMC account in accounts receivable ledger:
Accounts Receivable/AMC | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (6)
Preparation of accounts receivable/MSS account in accounts receivable ledger:
Accounts Receivable/MSS | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 2,000 |
Table (7)
Preparation of accounts receivable/MW account in accounts receivable ledger:
Accounts Receivable/MW | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (8)
Preparation of accounts receivable/OLS account in accounts receivable ledger:
Accounts Receivable/OLS | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 2,300 |
Table (9)
Preparation of accounts receivable/HMC account in accounts receivable ledger:
Accounts Receivable/HMC | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (10)
Preparation of accounts receivable/MOS account in accounts receivable ledger:
Accounts Receivable/MOS | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (11)
Preparation of accounts receivable/COT account in accounts receivable ledger:
Accounts Receivable/COT | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 0 |
Table (12)
2.
2.
Explanation of Solution
Prepare cash account in general ledger:
Cash | Page 101 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 27,400 | |||
April 1, 2019 | Accounts receivables/MSS | 11 | 1,980 | 29,380 | |
April 5, 2019 | Sales | 11 | 1,725 | 31,105 | |
April 7, 2019 | Sales return and allowances | 11 | 80 | 31,025 | |
April 10, 2019 | Accounts receivables/AMC | 11 | 4,455 | 35,480 | |
April 17, 2019 | Accounts receivables/MW | 11 | 4,116 | 39,596 | |
April 19, 2019 | Accounts receivables/OLS | 11 | 2,300 | 41,896 | |
April 29, 2019 | Accounts receivables/HMC | 11 | 11,200 | 53,096 |
Table (13)
Prepare accounts receivable account in general ledger:
Accounts Receivable | Page 111 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 4,300 | |||
April 1, 2019 | Sales | 11 | 4,500 | 8,800 | |
April 3, 2019 | Cash | 11 | 1,980 | 6,820 | |
April 3, 2019 | Sales discount | 11 | 20 | 6,800 | |
April 8, 2019 | Sales | 11 | 6,500 | 13,300 | |
April 10, 2019 | Cash | 11 | 4,455 | 8,845 | |
April 10, 2019 | Sales discount | 11 | 45 | 8,800 | |
April 15, 2019 | Sales return and allowance | 11 | 2,300 | 6,500 | |
April 17, 2019 | Cash | 11 | 4,116 | 2,384 | |
April 17, 2019 | Sales discount | 11 | 84 | 2,300 | |
April 19, 2019 | Cash | 11 | 2,300 | 0 | |
April 20, 2019 | Sales | 11 | 11,200 | 11,200 | |
April 25, 2019 | Sales | 11 | 10,800 | 22,000 | |
April 26, 2019 | Sales | 11 | 8,600 | 30,600 | |
April 27, 2019 | Sales return and allowance | 11 | 500 | 30,100 | |
April 29, 2019 | Cash | 11 | 10,976 | 19,124 | |
April 29, 2019 | Sales discount | 11 | 224 | 18,900 | |
April 30, 2019 | Sales | 11 | 3,200 | 22,100 |
Table (14)
Prepare sales account in general ledger:
Sales | Page 401 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Accounts receivables/AMC | 11 | 4,500 | ||
April 5, 2019 | Cash | 11 | 1,725 | ||
April 8, 2019 | Accounts receivables/MW | 11 | 6,500 | ||
April 20, 2019 | Accounts receivables/HMC | 11 | 11,200 | ||
April 25, 2019 | Accounts receivables/MOS | 11 | 10,800 | ||
April 26, 2019 | Accounts receivables/COT | 11 | 8,600 | ||
April 30, 2019 | Accounts receivables/OLS | 11 | 3,200 |
Table (15)
Prepare sales returns and allowance account in general ledger:
Sales Returns and Allowances | Page 451 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 7, 2019 | Cash | 11 | 80 | 80 | |
April 15, 2019 | Accounts receivables/MW | 11 | 2,300 | 2,380 | |
April 27, 2019 | Accounts receivables/MOS | 11 | 500 | 2,880 |
Table (16)
Prepare sales discount account in general ledger:
Sales Discount | Page 452 | ||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 3, 2019 | Accounts receivables/MSS | 11 | 20 | 20 | |
April 10, 2019 | Accounts receivables/AMC | 11 | 45 | 65 | |
April 17, 2019 | Accounts receivables/MW | 11 | 84 | 149 | |
April 29, 2019 | Accounts receivables/HMC | 11 | 224 | 373 |
Table (17)
Prepare accounts receivable/AMC account in accounts receivable ledger:
Accounts Receivable/AMC | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Sales | 4,500 | 4,500 | ||
April 10, 2019 | Cash | 4,455 | 45 | ||
April 10, 2019 | Sales discount | 45 | 0 |
Table (18)
Prepare accounts receivable/MSS account in accounts receivable ledger:
Accounts Receivable/MSS | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 2,000 | |||
April 3, 2019 | Cash | 1,980 | 20 | ||
April 3, 2019 | Sales discount | 20 | 0 |
Table (19)
Prepare accounts receivable/MW account in accounts receivable ledger:
Accounts Receivable/MW | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 8, 2019 | Sales | 6,500 | 6,500 | ||
April 15, 2019 | Sales return and allowance | 2,300 | 4,200 | ||
April 17, 2019 | Cash | 4,116 | 84 | ||
April 17, 2019 | Sales discount | 84 | 0 |
Table (20)
Prepare accounts receivable/OLS account in accounts receivable ledger:
Accounts Receivable/OLS | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 1, 2019 | Balance | 2,300 | |||
April 19, 2019 | Cash | 2,300 | 0 | ||
April 30, 2019 | Sales | 3,200 | 3,200 |
Table (21)
Prepare accounts receivable/HMC account in accounts receivable ledger:
Accounts Receivable/HMC | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 20, 2019 | Sales | 11,200 | 11,200 | ||
April 29, 2019 | Cash | 10,976 | 224 | ||
April 29, 2019 | Sales discount | 224 | 0 |
Table (22)
Prepare accounts receivable/MOS account in accounts receivable ledger:
Accounts Receivable/MOS | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 25, 2019 | Sales | 10,800 | 10,800 | ||
April 27, 2019 | Sales return and allowance | 500 | 10,300 |
Table (23)
Prepare accounts receivable/COT account in accounts receivable ledger:
Accounts Receivable/COT | |||||
Date | Particular | Post Ref. |
Debit ($) |
Credit ($) |
Balance ($) |
April 26, 2019 | Sales | 8,600 | 8,600 |
Table (24)
3.
Prepare the accounts receivable schedule. Also, compare the balance of the accounts receivable control account with the accounts receivable schedule.
3.
Explanation of Solution
Schedule of accounts receivable:
Particulars | Amount |
Accounts receivables-AMC | 0 |
Accounts receivables-MSS | 0 |
Accounts receivables-MW | 0 |
Accounts receivables-OLS | 3,200 |
Accounts receivables-HMC | 0 |
Accounts receivables-MOS | 10,300 |
Accounts receivables-COT | 8,600 |
Total | 22,100 |
Table (25)
Since the accounts receivables general ledger includes all the accounts presented in the accounts receivable ledger; therefore, a total of balances presented under the accounts receivable ledger agrees with the balance of accounts receivable control account of the general ledger.
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