|
|
| *Ostroff, Fair and Company>>>Other - Business & Finance |
I am doing journal entries and producing revised trial balance? |
could anyone please help im stuck with two answers. first one is a repayment of 拢367.50 of a bank loan has been made by direct debit.no entries have been made in the accounts.The second one is 拢48.50 was deducted from a payment to alpine products,we have been informed that the discount has been dissallowed.The discount was entered in the discount account and the suppliers account. Could anybody please help? Qn 1 Repayment of bank loan by direct debit means you didn't issue a cheque but the amt was deducted in your bank statement, as if you had written a cheque. So when you've rec'd the bank statement and know the actual amt deducted, you'd: Dr Loan repayable 367.50 Cr Cash at bank 367.50 Qn 2 You short paid Alpine thinking you were given a discount but you weren't. So now you have to pay Alpine the amt which you had earlier withheld from payment. Assuming your original purchases were, say, 485, originally you must have: Dr Purchases 485.00 Cr A/cs payable 485.00 Then when you thought you had a (10%) discount, you must have: Dr A/cs payable 48.5 Cr Discount received 48.5 and when you made payment, you must have: Dr A/cs payable 436.50 Cr Cash 436.50 Now you're told you didn't get the discount. So you should: Dr Discount received 48.5 Cr A/cs payable 48.5 (to reverse the discount) and when you make payment of the 48.50, you'd: Dr A/cs payable 48.5 Cr Cash 48.5 |
| Tags |
| Other - Business & Finance Other Taxes United States Taxes United Kingdom Taxes Spain Taxes |
Finance Categories--Copyright/IP Policy--Contact Webmaster |