O-LevelAccountingSources and recording of data7707/12 · May/June 2014 · Q51 Mark
On 1 April Jane sold goods on credit to Martha subject to a trade discount of 25%. Martha returned goods, list price $200, to Jane on 7 April. How will Martha record the transaction of 7 April? book of prime (original) entry account to be debited account to be credited $ $ A purchases returns journal Jane 150 purchases returns 150 B purchases returns journal Jane 200 purchases returns 200 C sales returns journal sales returns 150 Martha 150 D sales returns journal sales returns 200 Martha 200
Apurchases returns journal Jane 150 purchases returns 150
Bpurchases returns journal Jane 200 purchases returns 200
Csales returns journal sales returns 150 Martha 150
Dsales returns journal sales returns 200 Martha 200
✓ Correct answer
A: purchases returns journal Jane 150 purchases returns 150
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