Entering Accounts Receivables into in the respective ledger account and balance the accounts
Your co. Ltd provided you with the following accounts receivable related information for three years as follows;
Amt. $
31/12/2014 Accounts Receivables 100,000
31/12/2015 Accounts Receivables 125,000
31/12/2016 Accounts Receivables 110,000
The management set a discount allowable policy effect from 1/1/2014 of 5% of the good accounts receivables in each financial period.
Required
Enter the following transactions in the respective ledger account and balance the accounts where applicable, prepare profit and loss account (i.e. comprehensive income statement) and extract the respective balance sheet (i.e. statement of financial position) for the three years, 2014, 2015 and 2016
SOLUTION



About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.