Page 359 - F3 -FA Integrated Workbook STUDENT 2018-19

Answers

Example 2

Recording cash transactions

Continuing with the example of Mylee, she also entered into the following
transactions on credit:

5 Sold goods on credit to Tayo which had cost $1,700 for $3,500

6 Purchased a delivery van from on credit for $3,000 from Morrison’s Vans

7 Purchased goods for resale on credit from Tommy at a cost of $3,000

Required:

For each of the transactions, state the acocunting entries required and
show how they would be recorded in ledger accounts. (Note: continue
to use the ledger accounts already opened for purchases and sales
revenue).

Solution

Accounting entries

Debit $ Credit $
5 Receivable – Tayo 3,500 Sales revenue 3,500
6 Delivery van 3,000 Payable – 3,000
Morrison’s Vans

7 Purchases 4,000 Payable – Tommy 4,000

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