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Why sales including cash and credit and returns from debtors are entered in the stock account on actual sales prices?
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Prepare Debtors control account and Creditors control account?
The financial year of Ali & Co is closed on June 30, 2007. Data regarding Ali & Co isgiven below:Rs.Opening balanceDebtors 75,000Creditors 125,000Closing balanceDebtors 100,000Creditors 150,000SalesCash 100,000Credit 130,000PurchasesCash 80,000Credit 100,000Purchase returns (From credit purchases) 5,000Receipts from debtors ? 88500Payments to creditors ? 65000Discount allowed 2,000Discount received 5,000Bad debts written off 13,000Increase in provision for doubtful debts 2,500Required:Prepare Debtors control account and Creditors control account.
What type of account is Purchases returns and allowances?
A contra purchase account
What do you debit and credit for purchase returns?
Debit the supplier Credit the Purchases Returns account
Does sales returns and allowances have a normal debit balance?
That is correct. Sales and returns allowances is what is called a "Contra" account because it exists to reduce the net balance of an account. Sales is a credit account, so you debit sales returns and allowances in order to reduce your net sales.
Account type of purchase returns and allowances?
debit
Can sundry creditors make sale to sundry debtors?
yep its returns
Prepare Debtors control account and Creditors control account?
The financial year of Ali & Co is closed on June 30, 2007. Data regarding Ali & Co isgiven below:Rs.Opening balanceDebtors 75,000Creditors 125,000Closing balanceDebtors 100,000Creditors 150,000SalesCash 100,000Credit 130,000PurchasesCash 80,000Credit 100,000Purchase returns (From credit purchases) 5,000Receipts from debtors ? 88500Payments to creditors ? 65000Discount allowed 2,000Discount received 5,000Bad debts written off 13,000Increase in provision for doubtful debts 2,500Required:Prepare Debtors control account and Creditors control account.
What type of account is Purchases returns and allowances?
A contra purchase account
What do you debit and credit for purchase returns?
Debit the supplier Credit the Purchases Returns account
What is sales returns and allowances classified as?
An income account. Debit Returns & Allowances, Credit Cash.
Does sales returns and allowances have a normal debit balance?
That is correct. Sales and returns allowances is what is called a "Contra" account because it exists to reduce the net balance of an account. Sales is a credit account, so you debit sales returns and allowances in order to reduce your net sales.
What type of account is purchase returns?
credit card
Account type of purchase returns and allowances?
debit
What kind of an account are sales return and allowances?
Sales Returns and Allowances is a contra income account.
What are the job duties for a tax accoutant?
the job duties for a tax account is assits taxpayer,provides data for tax returns the job duties for a tax account is assits taxpayer,provides data for tax returns the job duties for a tax account is assits taxpayer,provides data for tax returns
Does sales returns and allowances have normal credit balance?
No sales returns and allowances has debit balance as a normal balance because these accounts are contra to actual sales account and that's why account balance is reverse of actual sales account.
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
