Ava maintains a full set of books of prime entry.
a. State one advantage of maintaining purchases and sales journals.
b. Complete the following table to name the business documents which Ava will use to make entries in her books of prime entry):
c. State how Ava would enter the monthly totals of the following books of prime entry in her ledger. The first one has been completed as an example.
d. Name two other books of prime entry which Ava may use.
e. Name the ledger in which Ava will maintain the following accounts:
i. sales account
ii. purchases returns account
iii. Charles (a credit customer)
Ava provided the following information about Charles, one of her credit customers:
20–1 June 1 Charles owed $450
5 Charles purchased goods, list price $580, less 20% trade discount
13 Charles returned goods, list price $300, purchased on 5 June
23 Charles purchased goods, list price $200 (no trade discount was granted)
28 Charles paid the balance of his account on 1 June by cheque and deducted 2% cash discount
f. Write up the account of Charles in the ledger of Ava. Balance the account and bring down the balance on 1 July 20–1.
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