Answer:
Recording sale made on account with a sales discount:
A sale made on account would debit the account receivable as there is an increase in the asset with a corresponding credit to the sale account since revenue is credited.
1.
Open cash account, sales account, accounts receivable account, sales return and allowance account, sales tax payable in general ledger
The following is the general ledger of cash:
The following is the ledger of accounts receivable:
The following is the general ledger of sales tax payable:
The following is the general ledger of sales:
The following is the general ledger of sales returns and allowances:
The following is the ledger of Mr. C in subsidiary ledger:
The following is the ledger of Mr. B in subsidiary ledger:
The following is the ledger of Mr. M in subsidiary ledger:
The following is the ledger of Mr. J in subsidiary ledger:
The following is the ledger of Mr. C in subsidiary ledger:
2.
Post the journal entries in the respective ledger accounts
The following is the general ledger of cash:
The following is the ledger of accounts receivable:
The following is the general ledger of sales tax payable:
The following is the general ledger of sales:
The following is the general ledger of sales returns and allowances:
The following is the general ledger of Mr. C:
The following is the general ledger of Mr. B:
The following is the general ledger of Mr. M:
The following is the general ledger of Mr. J:
The following is the general ledger of Mr. C:
The following is the schedule of the accounts receivable as on October 1, 2013:
The balance in accounts receivable account should tally with balance in schedule of accounts receivable.
Balance in accounts receivable account is $3,626.50
Balance in schedule of account receivable is $3,626.50
Analysis: The total amount of sales tax owed was $1,758.40.
Answer:
Normal balances:
All the assets, expenses have a debit balance whereas all the liabilities as well as the revenue accounts have a credit balance.
Make the journal entries:
• On June 5, sales made to M/s. M for $1200. Here, sales made on credit. Hence, Accounts receivable is debited and a credit balance account sale is credited.
• On June 15, Cash sales made for $ 1,840. Here, cash received. Hence, cash account is debited and a credit balance account sale is credited.
• On June 30, Cash received from M/s. M. Here, cash received for clearance of credit sale made on June 5. Hence, cash account is debited and account receivable is credited.
Answer:
Recording sale made on account with a sales discount:
A sale made on account would debit the account receivable as there is an increase in the asset with a corresponding credit to the sale account since revenue is credited.
1.
Open the general ledger accounts
The following is the general ledger of cash:
The following is the ledger of accounts receivable:
The following is the general ledger of sales tax payable:
The following is the general ledger of sales:
2.
The following entries would be passed in general journal: Page 1
Sales tax amount is tax on sales; it is collected from the customer and should be deposited with Government authorities (sales tax authority). Hence sales tax amount is not included in sales revenue and is separately accounted in sales tax payable account.
Explanations:
March 1:
Accounts receivable =
Sales tax payable =
March 4:
Accounts receivable =
Sales tax payable =
March 12:
Accounts receivable =
Sales tax payable =
March 15:
Accounts receivable =
Sales tax payable =
March 25:
Accounts receivable =
Sales tax payable =
March 31:
Accounts receivable =
Sales tax payable =
3.
Post the above journal entries in the ledger accounts.
The following is the general ledger of cash:
The following is the ledger of accounts receivable:
The following is the general ledger of sales tax payable:
The following is the general ledger of sales:
Analysis: The total amount of cash receipts during the year were $11,409 (i.e. sum of all debits of cash ledger account)