Journal Practice question 2

11.When supplier make sales on Credit

Debit	Receivable (Increase current Asset)
Credit	Sales Revenue (Increase income)

12.When customer return goods to supplier,the supplier record the following entry

Debit	Sales Return (decrease in income)
Credit	Receivable (decrease in asset)

13.When supplier make sales on Credit & later cash received from supplier

Debit	Cash (Increase current asset)
Credit	Receivable  (decrease current  asset)

14.When supplier sales goods on Credit cost $115 including sales tax rate 15%.

Debit	Cash / Receivable (Gross Amount) 115
Credit	Sales (Net Amount)     100
Credit	Sales (Tax Amount)      15

Breakdown:sales tax  = $15   (115*15/115)

                     net sales  =$100  (115-15)

                     gross
                     amount    =115

15.When customer purchases goods on Credit cost $100 excluding sales tax rate 15%.

credit	payable accounts (Gross Amount)  115
debit	purchase (Net Amount)     100
debit	sales Tax ( Amount)            15

Breakdown:salestax       =$15   (100*15/100)

                     netpurchase =$100  (given question)

                     gross amount=$115

16.When supplier will give discount to customer,supplier record the following entry 

Debit	discount allow (increase expense)
Credit	receivable (decrease asset)

17.When customer receive discount from supplier,customer record the following entry 

Debit	payable (decrease liability)
Credit	discount received (increase income)

18.When supplier make sales on Credit & later cash receive from customer.

Debit	cash (Increase current Asset)
Credit	receivable (decrease current asset)

19.ABC company paid stationary expense for office purpose 

Debit	stationary expense (Increase expense)
Credit	cash (decrease asset)

20.ABC company paid repair expense for office purpose 

Debit	reapir expense (Increase expense)
Credit	cash (decrease asset)