Journals 2

Question	Answer
Owner invested £10,000 into the business bank account	Dr Bank £10,000 Cr Capital £10,000
Purchase of goods from PTA on credit for £1,000	Dr Purchases £1,000 Cr Trade Payables - PTA £1,000
Purchase of inventory from MQD on credit for £1,200	Dr Purchases £1,200 Cr Trade Payables - MQD £1,200
Sale of goods to a customer, Wilton Corp, for £2,000 on credit	Dr Trade Rec - W. Corp £2,000 Cr Sales £2,000
Sold inventory to DingDing, for £2,200 on credit	Dr Trade Rec - D.Ding £2,200 Cr Sales £2,200
Goods supplied by MQD were returned to them valued at £250	Dr Trade Rec - MQD £250 Cr Returns Out £250
Inventory sold to Wilton corp was the wrong size and so was returned, the returns were valued at £450	Dr Returns In £450 Cr Trade Rec - W.Corp £450
DingDing was not happy with the quality of some of the items sold and so returned £300 worth of goods.	Dr Returns In £300 Cr Trade Rec - D.Ding £300
DingDing paid the amount owed (£1,900) after taking a 10% quick payment discount.	Dr Bank £1,710 Dr Discount Allowed £190 Cr Trade Rec - D.Ding £1,900
KB Windows paid MQD £700 worth of the amount owed and took a £150 discount	Dr Trade Pay - £950 Dr Discount Rec £150 Cr Bank £700
PTA was paid £900 and the balance owed was taken as a discount (Originally Owed £1000)	Dr Trade payables - PTA £1,000 Dr Discount Allowed £100 Cr Bank £900

Resource summary

	Created by Kieran Howell over 8 years ago