2020 BGSS 3E POA EOY P1 Q3

3 The following transactions took place in Vicky Trading for the month of May 2020.

May 4

The business purchased $3 200 worth of goods from Red Provider on credit.

May 10

The business sold goods at $1 230 to Super Shop on credit. The cost price of the goods sold was $720.

May 15

Vicky Trading returned damaged goods worth $350 to Red Provider 

May 18

The business received a cheque from Super Shop for full settlement of amount outstanding. 

Complete the following table by stating the accounts to be debited and credited, followed by the amount, for each transaction. The first transaction has been shown as an example.

[8]

Date

Account Debited

Account Credited

May  4

Inventory $3 200

Trade Payable, Red Provider $3 200

May 10

  

May 15

  

May 18

  

[TOTAL 8]

SOLUTION
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a)

 

Date

Account Debited

Account Credited

May  4

Inventory $32000

Trade Payable, Red Provider $3 200

May 10

Trade receivable, Super Shop  $1230


Cost of sales   $720

Sales revenue   $1230


Inventory $720

May 15

Trade payables, Red Provider         $350

Inventory  $350

May 18

Cash at bank $1 230

Trade receivable

Super Shop  $1 230