ILLUSTRATION 3
The following data is given by Mr. S, the owner, with a request to compile only the two personal
accounts of Mr. H and Mr. R, in his ledger, for the month of April, 2022.
1 Mr. S owes Mr. R ` 15,000; Mr. H owes Mr. S ` 20,000.
4 Mr. R sold goods worth ` 60,000 @ 10% trade discount to Mr. S.
5 Mr. S sold to Mr. H goods prices at ` 30,000.
17 Record a purchase of ` 25,000 net from R, which were sold to H at a profit of `15,000.
18 Mr. S rejected 10% of Mr. R’s goods of 4th April.
19 Mr. S issued a cash memo for `10,000 to Mr. H who came personally for this consignment
of goods, urgently needed by him.
22 Mr. H cleared half his total dues to Mr. S, enjoying a ½% cash discount (of the payment
received, ` 20,000 was by cheque).
26 R’s total dues (less `10,000 held back) were cleared by cheque, enjoying a cash discount
of `1,000 on the payment made.
29 Close H’s Account to record the fact that all but ` 5,000 was cleared by him, by a cheque,
because he was declared bankrupt.
30 Balance R’s Account.
July 25, 2024