Journal Question

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone help with this question please i am p00 at journals! :?

The Question is:
Show the journal entries for the following transfers for the year ended 30 june 2005.
1) The balance of sales account £125,000 is to be transfered to trading and profit and loss account
2) The provision for doutful debts is £250; the amount is to be increased to £300.


Thanks in Advance
Gem. x :D

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal Question

    For the doubtfull debt you only need to deal with the increase and the provision for the £250 is already there so you

    Dr Doubtfull Debt expense account £50
    Cr Provision for Doubtfull Debt

    As for the sale I have no idea as i cant see how tis should be a journal as i'f have thought it's just balancing off the account and not a journal.
    maybe someone else can help us both out on that bit

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal Question

    The sales journal would be debit sales account with 125,000 and credit trading and profit and loss account with 125,000.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journal Question

    Thank you :D :thumbup:

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