Question

Provide JOURNAL ENTRIES FOR THE FOLLOWING

($ million)

CASH

Non Cash

TOTAL

7	Receivables - Cash Receipts from Customers [A]
			Cash Receipts	.
	Receipts, prior year		300
	Receipts, current year		800
	TOTAL CASH RECEIPTS		1100	0	1100
	[A] See transaction [2] for the accrual of Credit Sales
8	Vendors - Cash Payments to Vendors [B] - CASH OUTFLOWS
	Cash paid on prior year		300
	Cash paid in current		100
		Subtotal	400	0	400
	[B] See transaction [1} for the purchase on credit in current year.

						OUtFLOW
25	50 in Debt carried as a Liability is repurchased for Cash					50	50
	This represents its Fair Value and its Carrying Amount

Answer 1

transaction 7

cash received from customer A.

Particular	Debit	Credit
Cash account (Dr.)	1100
Accounts receivable account ~ customer A (Cr.)		1100
(To record cash received from customer A)

transaction 8

cash paid to vendor.

Particular	Debit	Credit
Accounts Payable account ~ vendor B (Dr.)	400
Cash account (Cr.)		400
(To record cash paid to vendor B)

transaction 25

Particular	Debit	Credit
Cash account (Dr.)	50
Bad debts recovered (Cr.)		50
(To record bad debts collected)