The following transactions were extracted from the books of Adamu, a sole trader for the month of March 2016.
March 4: Sold 80 bags of maize on credit to Papuk at N255 per bag subject to a trade discount of 5%.
March 10: Sold goods on credit to Abass for N1,170.
March 15: Received a cheque from Papuk for the amount due, less a discount of 10%.
March 20: Received cash of N900 from Abass.
You are required to prepare:
(a) Sales Journal;
(b) Customers’ Accounts in the Sales Ledger;
(c) Sales Ledger Control Account
Explanation
Adamu
| Dr | Sales journal | Cr | |
| Date | Particulars | Details (N) | Total (N) |
| March 4 | Papuk 80 bags of rice @ N255 per bag Less: 5% discount |
20,400 1,020 |
19,380 |
| March 10 | Abass - Goods Transferred to sales account |
1,170 20,550 |
(b) Papuk Account
| Dr (N) 2016 march 4: sales 19,380 19,380 |
Cr (N) 2016 march 15: Bank 17,442 Discount allowed 1,938 19,380 |
Abass Account
| Dr 2016 march 10: sales 1,170 1,170 April 1 Balance b/d 270 |
Cr 2016 march 20: cash 900 30: Balance c/d 270 1,170 |
Sales ledger control account
| Dr 2016 March 31: sales 20,550 20,550 April 1: Balance b/d 270 |
Cr 2016 March 31: Bank 20,550 Cash 900 Discount allowed 1,938 Balance c/d 270 20,550 |