Home For AAT student members AQ 2013 AAT Level 2 (Level 5 in Scotland)

Assignment 1 Scenario 4 Unit 30

davidd2000davidd2000 Just JoinedRegistered Posts: 2
Hey guys....I'm having a total block on this one....:001_unsure:

Two examples of the scenario are here....

Sold to Draper Ltd 2 dozen cushion covers @ £36 each (so invoice as its being sold to a company and therefore in SDB right?)

Sold 20 bath towles @ £14 each to I. Wash (assume cash sale as its a customer rather then a company, therefore Cash book right?):confused1:

Any help would be much appreciated!

Comments

  • The Accounting BikerThe Accounting Biker New Member Registered Posts: 8
    hi,

    Its been a while since I was near T accounts but here goes...

    The credit sale is cr sales (82.5%)+ cr vat (17.5%)+ dr slca (100%) (not forgetting the debtors account (@100%) if required).

    Cash sales are cr sales (82.5%)+ cr vat (17.5%) + dr bank (100%).

    The cash/sales/purchase books are books of prime entry (and audit points) which feed the ledgers (cash receipts/payments) so yes if the sim has the books of prime entry then both/all transactions would appear in there as well. In your examples the cr sale would be in the sdb which would feed into sales cr vat cr and on to slca dr and the cash sale would be in the sdb which would feed into sales cr vat cr and would feed back to cashbook (as paid cash) which would feed to the bank dr.

    I found that the best way to remember what goes where is to work from the bank as in money in/out (not forgetting the books of prime entry).

    Hope this helps...:001_tt2:
  • kath41kath41 New Member Registered Posts: 6
    Hiya

    You get to a stage where your head hurts!
    In this assignment though it is assumed that all the transactions are on credit and so the cash book doesn't need to be used.
    You should just have PDB, SDB, PRDB and SRDB. Total them up and transfer to your main ledger accounts (Purchases, VAT, Sales and returns) and then each customers/suppliers subsidiary account. :thumbup:

    Hope that helps! Good luck!
  • davidd2000davidd2000 Just Joined Registered Posts: 2
    Ahh superb! Thanks:thumbup:
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