2020 PHS 3N POA EOY P1 Q3

3 Nathania Nuggets provided the following ledger account for the month of December 2019.

Trade receivable – Syarifah account

2019

Particulars

Dr ($)

Cr ($)

Balance ($)

Dec 1

Balance b/d

  

3 600 Dr

9

Sales revenue

1 300

 

4 900 Dr

12

Cash in hand

 

2 800

2 100 Dr

16

Sales returns

 

200

1 900 Dr

 

Additional information

1. The owner took out an office computer costing $2 100 for his son. This has not been recorded yet.

2. The net realisable value of the inventory was $47 930.

3. Interest expense of $200 was unpaid.

REQUIRED

a. Describe the transactions that took place on the following dates:

[6]

i. 9 December 2019

ii. 12 December 2019

iii. 16 December 2019

b. State the source document used in the transaction on 16 December 2019.

[1]

c. State the effect sales returns has on the profit for the year.

[1]

[TOTAL 8]

SOLUTION
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a)

(i) Nathania Nuggets sold goods on credit to Syarifah for $1 300.

 

(ii) Nathania Nuggets received cash,$2 800, from Syarifah.


(iii) Syarifah returned of goods of $200 to Nathania Nuggets.

c)

Profit for the year will decrease