Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Double entry bookkeeping
- This topic has 3 replies, 2 voices, and was last updated 1 month ago by
John Moffat.
- AuthorPosts
- July 5, 2024 at 8:49 am #707842
Dear Sir,
I had a question about question 4.1 and 4.2 of BPP F3 revision kit.
May 1, Sold $160 of goods to P Dixon on Credit
May 1. WIthdrew $50 from the business
May 2. Purchased goods from A Clarke on Credit for $380 less 15% trade discount
May 2. Repaid a dept of $120 owing to R Hill, taking advantage of a 10% settlement discount. The payment was by cheque
May 3. Sold $45 of goods for cash
May 4. Sold $80 of gods to M Maguire on credit, offering a 12.5% discount If payment made within 7 days. Marshall expects Maguire to take up the discount
May 4, Paid a phone bill of $210
May 4. Received a cheques from H Larkin for $180
May 5. Sold $304 of goods to M Donald on credit.
May 6 Recieve a Cheque from D Randle for $482
May 6 Purchased $100 of goods from G Perkins4.1. What is the total of the transactions recorded in the receivables ledger?
The answer given in the book is 534$. But I don’t understand why they didn’t account for the transaction on May 6. I think that receipt a cheque of 482$ will result in a credit entry in the receivables ledger?4.2. What is the total of the transactions recorded in the payables ledger?
The answer given in the book is823$. But I don’t understand why they didn’t account for the transaction on May 2. I think that a payment of 120$ will result in the debit entry in the payables account?I look forward to your explanation.
Hope you have a great day!!July 5, 2024 at 1:50 pm #707848What you have written is correct and I really cannot explain why the BPP answers should have left out those amounts. I can only assume that they made mistakes in either the typing of the question or in the answer.
July 6, 2024 at 9:51 am #707871Thank you Sir!!!
July 6, 2024 at 10:00 am #707874You are welcome 🙂
- AuthorPosts
- The topic ‘Double entry bookkeeping’ is closed to new replies.