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The books of prime entry, discounts and sales tax
The double-entry required for the total from the sales day book to the nominal ledger
would be as follows:
Debit Receivables $24,240
Credit Sales tax $4,040
Credit Sales $20,200
As well as the double-entry to the nominal ledger as above, each of the individual
sales would also be recorded within the sales ledger, to each customers individual
memorandum account.
Debit Jake $5,400
Debit Bella $3,600
Debit Fizz $2,640
Debit Milo $12,000
Debit Max $600
Note that as the memorandum accounts are not part of the nominal ledger the
double-entry concept does not apply, and as such, there is no opposing credit entry
required within the sales ledger.
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