Additional Exercises: Chapter 2 (Page 13)

Question No 1

Adams account
$ $
July 5 Purchase returns 600 July 1 Purchases 4 250
July 14 Bank (4250 600 x 96%) 3 504
July 14 Discount received 146
4 250 4 250

Bond account
$ $
July 14 Bank (2250 x 96%) 2 160 July 4 Purchases 2 250
July 14 Discount received 90
2 250 2 250

Astle account
$ $
July 9 Purchase returns 800 July 7 Purchases 5 600
July 14 Bank (5600 800 x 95%) 4 560
July 14 Discount received 240
5 600 5 600

Cairns account
$ $
July 14 Bank (3780 x 95%) 3 591 July 10 Purchases 3 780
July 14 Discount received 189
3 780 3780

Purchases account
$ $
July 1 Adams 4 250
July 4 Bond 2 250
July 7 Astle 5 600
July 10 Cairns 3 780

Purchase returns account

$ $
July 5 Adams 600
July 9 Astle 800
 Bank account
$ $
July 14 Bank 3 504
July 14 Bond 2 160
July 14 Astle 4 560
July 14 Cairns 3 591

Discount received account

$ $
July 14 Adams 146
July 14 Bond 90
July 14 Astle 240
July 14 Cairns 189

Note

1 The accounts for purchases, purchase returns, bank and discount received have not been closed.
They will remain open until the trial balance is prepared.

2 It is assumed that the value of goods returned is after taking account of the trade discount at the
appropriate percentage.
Question No 2

Blignaut account
$ $
Mar 1 Sales 2 250 Mar 15 Bank (2250 x 96%) 2 160
Mar 15 Discount allowed 90

2 250 2 250

Ebrahim account
$ $
Mar 4 Sales 3 400 Mar 6 Sales returns 200
Mar 15 Bank (3400 200 x 95%) 3 040
Mar 15 Discount allowed 160

3 400 3 400

Friend account
$ $
Mar 8 Sales 2 560 Mar 15 Bank (2560 x 95%) 2 432
Mar 15 Discount allowed 128

2 560 2 560

Flower account
$ $
Mar 12 Sales 1 800 Mar 14 Sales returns 350
Mar 15 Bank (1800 -350 x 96%) 1 392
Mar 15 Discount allowed 58

1 800 1 800

Sales account
$ $
Mar 1 Blignaut 2 250
Mar 4 Ebrahim 3 400
Mar 8 Friend 2 560
Mar 12 Flower 1 800

Sales returns account

$ $
Mar 6 Ebrahim 200
Mar 14 Flower 350
 Bank account
$ $
Mar 15 Blignaut 2 160
Mar 15 Ebrahim 3 040
Mar 15 Friend 2 432
Mar 15 Flower 1 392

Discount allowed account

$ $
Mar 15 Blignaut 90
Mar 15 Ebrahim 160
Mar 15 Friend 128
Mar 15 Flower 58

Note

1. The accounts for sales, sales returns, bank and discount allowed have not been closed. They will
remain open until the trial balance is prepared.

2. It is assumed that the value of goods returned is after taking account of the trade discount at the
appropriate percentage.