Case-3: Stationery Hut is engaged in the purchase and sale of stationery products. The inventory of...

 

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Case-3: Stationery Hut is engaged in the purchase and sale of stationery products. The inventory of the company ranges from carbon pencil to cartridge. It has earned the reputation of delivering high quality products in a timely manner. The following transactions are relating to Stationery Hut for the month of April 2020. Date Transaction April 4 Purchased merchandise from Huda Company OMR 1,000, terms 2/10, n/30, FOB shipping point. 5 8 Paid freight on purchased from Huda Company OMR 50. Sold merchandise to Abdullah Company OMR 800, terms 2/EOM, n/60. The cost of merchandise sold was OMR 500. 10 Received credit of OMR 120 from Huda Company for damaged merchandise that were returned. 11 Purchased merchandise from Al Khatab Company for cash OMR 300. 13 Paid Huda Company in full after deducting returns and discount. 14 Purchased merchandise from Rashid Company OMR 1,200, terms 2/10, n/60. 15 Received cash refund of OMR 50 from Al Khatab Company for damaged merchandise that was returned. 17 Paid freight on purchase from Rashid Company OMR 70. 18 Sold merchandise to Abdullah Company OMR 600, terms 2/EOM, n/60. The cost of merchandise sold was OMR 400. 19 Granted an allowance of OMR 40 to Abdullah Company for the damaged merchandise returned. 20 Received payment in full from Abdullah Company. 21 Paid Rashid Company in full. Question - 3: a. Under Perpetual Inventory System, you are required to prepare; i. Special Journals and General Journal. (5 Marks) ii. Accounts Receivable Subsidiary Ledger Accounts and Accounts Payable Subsidiary Ledger Accounts. (3 Marks) iii. Accounts Receivable Control Account and Accounts Payable Control Account. (2 Mark) Case-3: Stationery Hut is engaged in the purchase and sale of stationery products. The inventory of the company ranges from carbon pencil to cartridge. It has earned the reputation of delivering high quality products in a timely manner. The following transactions are relating to Stationery Hut for the month of April 2020. Date Transaction April 4 Purchased merchandise from Huda Company OMR 1,000, terms 2/10, n/30, FOB shipping point. 5 8 Paid freight on purchased from Huda Company OMR 50. Sold merchandise to Abdullah Company OMR 800, terms 2/EOM, n/60. The cost of merchandise sold was OMR 500. 10 Received credit of OMR 120 from Huda Company for damaged merchandise that were returned. 11 Purchased merchandise from Al Khatab Company for cash OMR 300. 13 Paid Huda Company in full after deducting returns and discount. 14 Purchased merchandise from Rashid Company OMR 1,200, terms 2/10, n/60. 15 Received cash refund of OMR 50 from Al Khatab Company for damaged merchandise that was returned. 17 Paid freight on purchase from Rashid Company OMR 70. 18 Sold merchandise to Abdullah Company OMR 600, terms 2/EOM, n/60. The cost of merchandise sold was OMR 400. 19 Granted an allowance of OMR 40 to Abdullah Company for the damaged merchandise returned. 20 Received payment in full from Abdullah Company. 21 Paid Rashid Company in full. Question - 3: a. Under Perpetual Inventory System, you are required to prepare; i. Special Journals and General Journal. (5 Marks) ii. Accounts Receivable Subsidiary Ledger Accounts and Accounts Payable Subsidiary Ledger Accounts. (3 Marks) iii. Accounts Receivable Control Account and Accounts Payable Control Account. (2 Mark)

Answer rating: 100% (QA)

i SPECIAL JOURNALS CASH PAYMENTS JOURNAL PAGE DATE CK NO DESCRIPTION POST REF ACCOUNTS PAYABLE DEBIT OTHER ACCOUNTS DEBIT PURCHASES DISCOUNTS CREDIT C... View the full answer