Financial Accounting Help

USA Discussion in 'Exams and Studying' started by Sarah Lovely, Oct 31, 2016.

  1. Sarah Lovely

    Sarah Lovely

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    1) Discounts allowed by trade creditors amounted to $5000 and those allowed to trade debtors $2000

    2) Cheques drawn payable to trade creditors, but not presented at December 31, 2012 amounted to $4000 and at December 31, 2015 $6000

    How would you record the above two using t-accounts or the appropriate accounts. Please help me !!
     
    Sarah Lovely, Oct 31, 2016
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  2. Sarah Lovely

    Sarah Lovely

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    This is what i have so far not sure if it is correct
    Discount Allowed - Debit 2000
    Discount received - Credit 5000

    for #2 i am clueless
     
    Sarah Lovely, Oct 31, 2016
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  3. Sarah Lovely

    ghaffar795

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    Yes, Your Creditor allowed you $5000 discount, it means you have received the Discount and Your debtor Discount $2000 that means, Discount Allowed.

    2nd transaction belong to Bank Reconciliation. Both checks issued but not presented or cashed. So we will add back in the cash book. Because these are not presented in Pass Book. We can just made changes in our side. We can do any thing in Pass Book
     
    ghaffar795, Nov 4, 2016
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  4. Sarah Lovely

    Sarah Lovely

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    Thank you very much
     
    Sarah Lovely, Nov 4, 2016
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    ghaffar795 likes this.
  5. Sarah Lovely

    ghaffar795

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    You are always welcome. If you need assistance in any account problem, I am here to help you.

    Thanks
     
    ghaffar795, Nov 4, 2016
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