Di Ieso & Daughters uses sales, purchases, cash receipts, cash payments and a general journal (ignore GST).

Question:

Di Ieso & Daughters uses sales, purchases, cash receipts, cash payments and a general journal (ignore GST). The following column totals were taken from the entity’s journals at the end of June:

1. Sales journal

2. Purchases journal

3. Cash receipts journal:

(a) Cash

(b) Accounts receivable

(d) Discounts allowed

$7 520

4 010

6 215

5 210

1 050

4. Cash payments journal:

(a) Cash

(b) Accounts payable

(d) Purchases

$5 912

5 010

100

1 000

The balance in the Accounts Receivable Control account on 1 June was $3006 and the Accounts Payable Control account balance was $4260.

Required

A. At the end of June, the total amount from the sales journal should be posted to what account or accounts?

B. At the end of June, the total amount from the purchases journal should be posted to what account or accounts?

C. For each column total in the cash receipts and the cash payments journals, specify whether it would be posted to the general ledger as a debit or a credit, and to which account.

D. After the amounts in the journals have been posted to the general ledger for June, what would be the balances in the Accounts Receivable Control and the Accounts Payable Control accounts?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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