This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
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You're on a roll — Here are the credit transactions recorded in the Creditors Journal for Polly's Traders for February 20.2. Step 1: Analyze each transaction to identify the creditor, renumbered invoice number, total amount, and the accounts to be debited. February 1: Creditor: Office World Ltd Invoice No.: 001 (from A214) Creditors Control (Cr): R2 460 (show case) + R870 (desk) + R1 430 (cash register) = R4 760 Sundry Accounts (Dr): Equipment, R4 760 February 14: Creditor: General Distributors Invoice No.: 002 (assumed, as none given) Creditors Control (Cr): R490 (packing material) + R195 (stationery) = R685 Packing Material (Dr): R490 Stationery (Dr): R195 February 20: Creditor: Office World Ltd Invoice No.: 003 (from A291) Creditors Control (Cr): R4 760 (merchandise) + R978 (stationery) + R5 445 (repairs) = R11 183 Trading Inventory (Dr): R4 760 Stationery (Dr): R978 Sundry Accounts (Dr): Repairs Expense, R5 445 February 22: Creditor: General Distributors Invoice No.: 004 (from 1032) Creditors Control (Cr): R1 350 (trading inventory) Trading Inventory (Dr): R1 350 February 25: Creditor: M&M Motors Invoice No.: 005 (assumed, as none given) Creditors Control (Cr): R40 000 (second-hand vehicle) Sundry Accounts (Dr): Vehicles, R40 000 Step 2: Record the transactions in the Creditors Journal and calculate the column totals. |l|l|l|r|r|r|r|l|r| 9|c|Creditors Journal of Polly's Traders \\ Date & Creditor's Name & Invoice No. & Creditors Control (Cr) & Trading Inventory (Dr) & Stationery (Dr) & Packing Material (Dr) & 2|c|Sundry Accounts (Dr) \\ 8-9 & & & & & & & Account & Amount \\ Feb & & & & & & & & \\ 01 & Office World Ltd & 001 & R4760 & & & & Equipment & R4760 \\ 14 & General Distributors & 002 & R685 & & R195 & R490 & & \\ 20 & Office World Ltd & 003 & R11183 & R4760 & R978 & & Repairs Expense & R5445 \\ 22 & General Distributors & 004 & R1350 & R1350 & & & & \\ 25 & M\&M Motors & 005 & R40000 & & & & Vehicles & R40000 \\ Total & & & R57978 & R6110 & R1173 & R490 & & R50205 \\ Got more? Send 'em!