Chibwe and sons supplied the following to vadia wholesale shop and the following is a summary of what…

Question

Chibwe and sons supplied the following to vadia wholesale shop and the following is a summary of what happened between the two A prepare a statement of account

ScanSolve AI Tutor · Accepted Answer

To prepare the Statement of Account for Nadia Wholesale Shop from Chibwe and Sons' perspective, we will track the balance owed.

Start with the opening balance.
The opening balance of K22,500 represents the amount Nadia Wholesale Shop owed at the beginning, so it's a debit balance.
Record the invoice.
An invoice increases the amount owed by the customer, so it is a debit of K63,550.
Current Balance = K22,500 (Opening Balance) + K63,550 (Invoice) = K86,050.
Record the credit note.
A credit note reduces the amount owed by the customer, so it is a credit of K2,800.
Current Balance = K86,050 - K2,800 (Credit Note) = K83,250.
Record the receipt.
A receipt is a payment received from the customer, which reduces the amount owed, so it is a credit of K11,000.
Current Balance = K83,250 - K11,000 (Receipt) = K72,250.
Prepare the Statement of Account.
$\begin{array}{|l|l|r|r|r|} \hline \textbf{Date} & \textbf{Details} & \textbf{Debit (K)} & \textbf{Credit (K)} & \textbf{Balance (K)} \\ \hline & \text{Balance b/f} & & & 22,500 \\ & \text{Invoice} & 63,550 & & 86,050 \\ & \text{Credit Note} & & 2,800 & 83,250 \\ & \text{Receipt} & & 11,000 & 72,250 \\ \hline & \text{Closing Balance} & & & \boxed{\textbf{72,250}} \\ \hline \end{array}$
The calculated closing balance is K72,250. Please note that this does not match the closing balance of K119,300 provided in the problem statement.

Chibwe and sons supplied the following to vadia wholesale shop and the following is a summary of what happened between the two A prepare a statement of account

Answer

Step-by-step solution

Start with the opening balance.

Record the invoice.

Record the credit note.

Record the receipt.

Prepare the Statement of Account.

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