Seok deals in goods on credit, both purchasing and selling them. He has three credit customers and gives Naomi a trade discount of 10%. Each customer pays Seok by bank transfer.
The balances listed below were taken from Seok’s sales ledger on 1 August 2023.
Naomi $450
Siena $155
Bwana $386
Total $991
The following transactions happened in August 2023.
Aug 3 Credit sale to Naomi, list price $410
Aug 5 Credit sale to Bwana for $89
Aug 10 Naomi sent back goods, list price $20
Aug 11 Naomi paid $423 to settle in full the amount she owed at 1 August
Aug 19 Credit sale to Bwana for $180
Aug 22 Credit sale to Naomi, list price $230
Aug 27 Bwana sent back goods, $19
Aug 29 Bwana paid $400
(a)[4]
Prepare the sales journal for August 2023, total it, and show the ledger account to which the total would be posted.
(b)[3]
Prepare the sales returns journal for August 2023, total it, and show the ledger account to which the total would be posted.
(c)[6]
Prepare the account for Naomi for August 2023 as it would appear in Seok’s books. Balance the account and bring the balance down at 1 September 2023.
(d)[7]
Prepare Seok’s sales ledger control account for August 2023. Balance the account and bring the balance down at 1 September 2023.
Worked solution & mark scheme
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