Chapter 7, Problem 5PA

1.

To determine

Open the general ledger accounts and accounts receivable ledger accounts.

Explanation of Solution

Ledgers:

Ledgers are T-accounts to which journal entries are posted. They are used to ascertain the transactions of a particular account and its closing balance for the period.

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.

To determine

Post the entries from general journal prepared in 55157-7-4PA in respective ledger accounts.

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	$\left(4,500\right)$
April 5, 2019	Cash	11		1,725	$\left(6,225\right)$
April 8, 2019	Accounts receivables/MW	11		6,500	$\left(12,725\right)$
April 20, 2019	Accounts receivables/HMC	11		11,200	$\left(23,925\right)$
April 25, 2019	Accounts receivables/MOS	11		10,800	$\left(34,725\right)$
April 26, 2019	Accounts receivables/COT	11		8,600	$\left(43,325\right)$
April 30, 2019	Accounts receivables/OLS	11		3,200	$\left(46,525\right)$

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.

To determine

Prepare the accounts receivable schedule. Also, compare the balance of the accounts receivable control account with the accounts receivable schedule.

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.