The information below is extracted from the books of James Brown for the year ended 31st March, 2008.$Sales380,800Purchases 326,000Return outwards14,000Cash received from debtors178,200Bills payable accepted122,000Returns inward17,600Cash paid to creditors186,000Bills receivable received136,000Discount received4,000Bad debit written off24,000Reserve for discount to debtors.2,000Discount allowed1,800Transfers from purchases ledger26,600The total of the sales ledger balance on 1st April, 2009 was $90,600 and that of the purchases ledger balance on the same date was $78,600.Prepare sales ledger and purchases ledger adjustment accounts from the above information.

1. Sales Ledger Adjustment A/c PARTICULARS AMOUNT PARTICULAR AMOUNT To Balance B/d…

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6EA: Millennium Associates records bad debt using the allowance, balance sheet method. They recorded...

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The information below is extracted from the books of James Brown for the year ended 31st March, 2008.

Sales	380,800
Purchases	326,000
Return outwards	14,000
Cash received from debtors	178,200
Bills payable accepted	122,000
Returns inward	17,600
Cash paid to creditors	186,000
Bills receivable received	136,000
Discount received	4,000
Bad debit written off	24,000
Reserve for discount to debtors.	2,000
Discount allowed	1,800
Transfers from purchases ledger	26,600

The total of the sales ledger balance on 1st April, 2009 was $90,600 and that of the purchases ledger balance on the same date was $78,600.

Prepare sales ledger and purchases ledger adjustment accounts from the above information.

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