N Robert, who owed the business R340, absconded (disappeared) and his debt must be written off as bad.
Bad Debts' Recovered, R340
N Robert/Creditors' Control, R340
N Robert/Debtors' Control, R340
Bad Debts, R340
Account Debit
Account Credit
The owner, L Draycott donated goods with a cost price of R200 to the SPCA.
Drawings, R200
Trading Stock, R200
Sales, R200
Donations, R200
Account Debit
Account Credit
Stationery bought for R760 cash was incorrectly recorded under “Equipment” in the CPJ. This error needs to be corrected.
Creditors' Control, R760
Bank, R760
Stationery, R760
Equipment, R760
Account Debit
Account Credit
Charged J Alexander interest at 16% p.a. on his account of R240 which was 5 months overdue.
Interest on overdue accounts, R38.40
J Alexander/Debtors' Control, R38.40
Interest on overdue accounts, R16
J Alexander/Debtors' Control, R16
Account Debit
Account Credit
The owner, L Draycott, took trading stock with a selling price of R750 for personal use. The business operates on a strict mark-up of 25% on cost.
Drawings, R600
Trading Stock, R750
Drawings, R750
Trading Stock, R600
Account Debit
Account Credit
Stationery, R500 bought on account from CNA was intended for resale, but was incorrectly recorded in the Stationery expense account.
Cost of Sales, R500
Trading Stock, R500
Stationery, R500
CNA/Creditors' Control, R500
Account Debit
Account Credit
B Murphy’s cheque of R785 received in settlement of his debt of R800 was dishonoured by the bank due to insufficient funds. The cheque has already been cancelled in the CPJ. The discount must be reversed.
B Murphy/Debtors' Control, R15
Bank, R800
Discount Allowed, R15
Discount Received, R15
Account Debit
Account Credit
S Smith, who owed Draycott Retailers R850, was declared insolvent. His estate will pay out 30 cents in the rand; the remaining debt must be writen off.
Bad Debts, R595
S Smith/Debtors' Control, R595
S Smith/Debtors' Control, R255
Bad Debts, R255
Account Debit
Account Credit
An invoice for equipment costing R12 000 bought on account from Torres Traders was incorrectly recorded in the account of Thurston Traders. This error needs to be corrected.
Bank, R12 000
Torres Traders/Creditors' Control, R12 000
Equipment, R12 000
Thurston Traders/Creditors' Control, R12 000
Account Debit
Account Credit
Issued a credit note to S Naidoo for goods returned, R400. This was correctly recorded in the DAJ but was posted to the account of M Owen in the Debtors' Ledger. This error needs to be corrected.