Question

At the beginning of the current season on April 1, the ledger of Sunland Pro Shop showed Cash $3,035: Inventory $4,035, and Common Stock $7,070. The following transactions occurred during April 2022. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,605, terms 3/10,n/60. 7 Paid freight on Arnie Co. purchases $86. 9 Received credit from Arnie Co.for merchandise returned $305. 10 Sold merchandise on account to members $1,434, terms n/30. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $888.terms 1/10, 1/30. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $88. 20 Made sales on account to members $867. terms n/30. 21 Paid Woods Sportswear in full 27 Granted credit to members for clothing that did not fit properly $86. 30 Received payments on account from members $1,305.

Answer 1

In the books of Sunland Pro - Journal
Date	Particulars						Debit	Credit
							Amount (USD)	Amount (USD)
Apr-05	Purchases (Debit)						1,605.00
	Accounts Payable -Arnie Co (Credit)							1,605.00
	(Narration : Sunland Pro purchased golf bag and balls worth $1,605 from Arnie Co, on credit .)
Apr-07	Freight-In (Debit)						86.00
	Cash (Credit)							86.00
	(Narration : Sunland Pro paid freight charges for the credit purchases done on April 5)
Apr-09	Accounts Payable -Arnie Co (Debit)						305.00
	Purchase Returns and allowances (Credit)							305.00
	(Narration: Sunland Pro returned good worth $305 to it's creditor Arnie Co
Apr-10	Accounts Receivable (Debit)						1,434.00
	Sales (Credit)							1,434.00
	(Narration: Sunland Pro sold goods worth $1,434 to it's members on credit
Apr-12	Purchases (Debit)						888.00
	Accounts Payable -Woods Sportswear (Credit)							888.00
	(Narration : Sunland Pro purchased golf shoes, sweaters and other accessories worth $ 888 from Woods Sportswear)
Apr-14	Accounts Payable - Arnie Co ( Debit)						1,300.00
	Cash (Credit)							1,261.00
	Purchases Discount (Credit)							39.00
	(Narration : Sunland Pro paid Arnie Co in full. Note the goods were purchased from Arnie on credit terms of 3/10, n/60 which means that if Sunland pro pays it's due withing 10 days from the date of purchase then a discount of 3% would be allowed at the time of payment. Now the amount outstanding on account of Arnie Co is $1,605-$305=$1300 so the discount received at the time of full settlement would be i,e $1300 X 3% = $39)
Apr-17	Accounts Payable -Woods Sportswear (Debit)						88.00
	Purchase Returns and allowances (Credit)							88.00
	(Narration: Sunland Pro returned good worth $ 88 to it's creditor Woods Sportswear
Apr-20	Accounts Receivable (Debit)						867.00
	Sales (Credit)							867.00
	(Narration: Sunland Pro sold goods worth $867 to it's members on credit
Apr-21	Accounts Payable -Woods Sportswear ( Debit)						800.00
	Cash (Credit)							792.00
	Purchases Discount (Credit)							8.00
	(Narration : Sunland Pro paid Woods Sportswear in full. Note the goods were purchased from Woods Sportswear credit terms of 1/10, which means that if Sunland pro pays it's due withing 10 days from the date of purchase then a discount of 1% would be allowed at the time of payment. Now the amount outstanding on account of Woods Sportswear is $888-$88=$800 so the discount received at the time of full settlement would be i,e $800 X 1% = $8)
Apr-27	Sales Return and Allowances (Debit)						86.00
	Account Receivable (Credit)							86.00
	(Narration: Sales return goods worth $ 86)
Apr-30	Cash (Debit)						1,305.00
	Accounts Receivable ( Credit)							1,305.00
	Narration : Received $1305 from the debtors on account on credit sales done.

Ledgers
Cash Account
Particulars	Debit (USD)		Credit (USD)
To Balance B/D	3,035.00	By Freight	86.00
To Accounts Receivable	1,305.00	By Accounts Payable ( Arnie co)	1,261.00
		By Accounts Payable ( Woods Sportswear)	792.00
		By Balance C/F	2,201.00
	4,340.00		4,340.00
Accounts Receivable
Particulars	Debit (USD)		Credit (USD)
To Sales	1,434.00	By Sales return and allowances	86.00
		By Cash	1,305.00
		By Balance C/F	43.00
	1,434.00		1,434.00
Inventory
Particulars	Debit (USD)		Credit (USD)
To Balance B/F	4,035.00	By Balance C/F	4,035.00
Accounts Payable
Particulars	Debit (USD)		Credit (USD)
To purchase return and allowance (Arnie Co)	305.00	By Purchases-Arnie Co	1,605.00
To Cash	1,261.00	By Purchases-Woods Sports wear	888.00
To Purchases discount -Arnie	39.00
To purchase return and allowance (Woods Sports Wear	867.00
To Cash	792.00
To Purchases discount -Woods Sports wear	8.00	By Balance C/F	779.00
	3,272.00		3,272.00
Common Stock
Particulars	Debit (USD)		Credit (USD)
To Balance B/F	7,070.00	By Balance C/F	7,070.00
Sales
Particulars	Debit (USD)		Credit (USD)
To Balance C/F	1,434.00	By Accounts Receivable	1,434.00
Sales Return
Particulars	Debit (USD)		Credit (USD)
To Accounts Receivable	86	By Balance C/F	86
Purchases Account
Particulars	Debit (USD)		Credit (USD)
To Accounts Payable- Arnie Co	1605	By Balance C/F	2493
To Accounts Payable- Woods Spors wear	888
	2493		2493
Purchases return
Particulars	Debit (USD)		Credit (USD)
To Balance C/F	1173	By Accounts Payable - Arnie Co	305
		By Accounts Payable - Woods Sports	867
	1173		1172
Purchases Discount
Particulars	Debit (USD)		Credit (USD)
To Balance C/F	47	By Accounts Payable - Arnie Co	39
		By Accounts Payable - Woods Sports	8
	47		47
Freight-in
Particulars	Debit (USD)		Credit (USD)
To cash	86	By Balance C/F	86

Sunland Pro Shop
Trail Balance
April 30,2022
Particulars	Debit(USD)	Credit(USD)
Cash	2,201.00
Accounts Receivable	43.00
Inventory	4,035.00
Purchases	2,493.00
Purchases Returns		1,173.00
Sales		1,434.00
Sales Return	86.00
Purchases Discount		47.00
Freight-in	86.00
Common Stock		7,070.00