January 1,07 S.Henry sales ledger appear D Fung $200 and C Manley $120.On february 1 Henry accept $150 from D.Fung and march 10, C.Manley was declared bankrupt.a payment of 30cent in $ was receive in full settlement. Show how these would appear in Henrys ledger assuming that the financial year ends june 30
To reflect these transactions in Henry's sales ledger, you will need to follow these steps:
Step 1: Create the Sales Ledger Account for D. Fung
On January 1, record D. Fung's outstanding payment of $200.
Debit Accounts Receivable (D. Fung) with $200.
Credit Sales Revenue with $200.
Step 2: Create the Sales Ledger Account for C. Manley
On January 1, record C. Manley's outstanding payment of $120.
Debit Accounts Receivable (C. Manley) with $120.
Credit Sales Revenue with $120.
Step 3: Update the Sales Ledger Accounts for D. Fung and C. Manley
On February 1, when Henry accepts $150 from D. Fung, update their Sales Ledger Account accordingly:
Debit Cash/Bank with $150.
Credit Accounts Receivable (D. Fung) with $150.
Step 4: Update the Sales Ledger Account for C. Manley
On March 10, when C. Manley is declared bankrupt and makes a payment of $0.30 (30 cents) in $, update their Sales Ledger Account accordingly:
Debit Cash/Bank with $0.30.
Credit Accounts Receivable (C. Manley) with $0.30.
Step 5: Prepare the Financial Statements
Assuming the financial year ends on June 30, you will need to reconcile the sales ledger accounts and prepare financial statements based on the remaining balances in the accounts.
To get a complete picture of Henry's sales ledger by the end of the financial year, you should also consider additional transactions, if any, that may have occurred during this period and adjust the accounts accordingly. Additionally, it is important to note that further information about purchases, expenses, and other relevant accounts is needed to prepare comprehensive financial statements.