Question

You are now instructed to record transactions that occurred throughout the second week of June into the company's books. The week 2 transactions are listed below:

Week 2

Date Transaction description

8 Paid the full amount owing to Buena Vista Coffee, Check No. 906.

10 Made cash sales of $9,669 during the week.

11 SloZone returned $1,284 worth of product. Issued a Credit Memorandum for $1,284.

13 Con's Coffee paid the full amount owing on their account. Since Con's Coffee has been a loyal customer from the day the business commenced, a 5% discount was given for this early repayment.

14 Sold 5 bags of Medium Roast Robusta Coffee Beans to KavaJava for $334 each, Invoice No. 202.

Could you show the account in the different ledger accounts?

Answer 1

Date Particulars Dr Cr

8th june Buena vista coffee a/c xx To bank a/c xx

(being check issued to buena vista coffee for paying due )

10th june cash a/c $9669

to sales $9669

( being sales made on cash basis )

11th june sales a/c $1284

To slozone a/c $1284

(being sales returned )

13th june cash a/c xx

discount a/c (xx*5%) xx

To cons coffee a/c xx

( being cash received from cons coffee and provide 5% dicount )   

14th june Kava java a/c $334

To sales $334

( being credit sales to kavajava, assumed credit sales )