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Question 5.4.5: Credit transactions Recorded in the sales day book and the p...

Credit transactions

Recorded in the sales day book and the purchase day book are the following transactions.

(a) The business sells goods on credit to a customer Mr A for $2,000.

(b) The business buys goods on credit from a supplier B Inc for $100.

How and where are these transactions posted in the ledger accounts?

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(a)

TRADE ACCOUNTS RECEIVABLE

$

Sales a/c                                            2,000

$

 

SALES ACCOUNT

$

 

$

Trade accounts receivable a/c         2,000

(b)

TRADE ACCOUNTS PAYABLE

$

$

Purchases a/c                                       100

PURCHASES ACCOUNT

$

Trade accounts payable a/c         100

 $

 

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