Shown the Sales and Returns Inwards Day Book of XY, a sole trader, who employs a bookkeeper to maintain her accounting records, but maintains a nominal ledger herself.

Required:
(a) Explain the meaning of the entry on 17 February.

(b) Explain how the realisation concept will have been applied in determining the above entries.

(c) Post the above transactions to the appropriate accounts in the nominal ledger and in the customers’ personal accounts.

Transcribed Image Text:

DATE CUSTOMER GOODS VAT 2012 Feb-07 ANG Ltd Feb-10 John's Stores Feb-14 ML Limited Feb-17 ML Limited Feb-25 ANG Ltd £ 4,600 2,800 1,000 £ 805 490 175 (105) 210 (600) 1,200 9,000 1,575 TOTAL £ 5,405 3,290 1,175 (705) 1,410 10,575