Question
ansations of Packets would be used to record each of the following 3.3.1
Pocket's Full returned stationery to a creditor as it was damaged
3.3.2
A debtor paid directly into the bank account of Pocket's Full to settle the outstanding amount due f
3.3.3
Rent received was incorrectly posted to the commission received account. The error needs to be corrected.
Pocket's Full returned stationery to a creditor as it was damaged
3.3.2
A debtor paid directly into the bank account of Pocket's Full to settle the outstanding amount due f
3.3.3
Rent received was incorrectly posted to the commission received account. The error needs to be corrected.
Answers
GPT-4o mini
To record the transactions mentioned for Pocket's Full, we would typically make journal entries. Below are the suggested journal entries for each situation:
### 3.3.1 Return of Damaged Stationery
**Transaction:** Pocket's Full returned stationery to a creditor because it was damaged.
**Journal Entry:**
```
Debit: Purchases Returns (or Inventory/Stationery Inventory) [Amount]
Credit: Accounts Payable (Creditor) [Amount]
```
*This entry reduces the inventory or purchases and also reduces the amount owed to the creditor.*
---
### 3.3.2 Debtor Payment Directly into Bank Account
**Transaction:** A debtor paid directly into the bank account of Pocket's Full to settle an outstanding amount due.
**Journal Entry:**
```
Debit: Bank Account [Amount]
Credit: Accounts Receivable (Debtor) [Amount]
```
*This entry increases the bank balance (asset) and decreases the accounts receivable, reflecting that the debtor's payment has been received.*
---
### 3.3.3 Correction of Rent Received Posted to Wrong Account
**Transaction:** Rent received was incorrectly posted to the commission received account. The error needs to be corrected.
**Journal Entry:**
```
Debit: Commission Received [Amount]
Credit: Rent Received [Amount]
```
*This entry reverses the incorrect posting by decreasing the commission income and correctly recognizing the rent received.*
---
### Notes:
1. The actual amounts for the journal entries should be filled in based on the specific values involved in each transaction.
2. It is a good practice to include a brief description of each transaction in the journal entries for clarity.
3. Depending on the accounting software or system used, the terminology and structure might slightly vary.
### 3.3.1 Return of Damaged Stationery
**Transaction:** Pocket's Full returned stationery to a creditor because it was damaged.
**Journal Entry:**
```
Debit: Purchases Returns (or Inventory/Stationery Inventory) [Amount]
Credit: Accounts Payable (Creditor) [Amount]
```
*This entry reduces the inventory or purchases and also reduces the amount owed to the creditor.*
---
### 3.3.2 Debtor Payment Directly into Bank Account
**Transaction:** A debtor paid directly into the bank account of Pocket's Full to settle an outstanding amount due.
**Journal Entry:**
```
Debit: Bank Account [Amount]
Credit: Accounts Receivable (Debtor) [Amount]
```
*This entry increases the bank balance (asset) and decreases the accounts receivable, reflecting that the debtor's payment has been received.*
---
### 3.3.3 Correction of Rent Received Posted to Wrong Account
**Transaction:** Rent received was incorrectly posted to the commission received account. The error needs to be corrected.
**Journal Entry:**
```
Debit: Commission Received [Amount]
Credit: Rent Received [Amount]
```
*This entry reverses the incorrect posting by decreasing the commission income and correctly recognizing the rent received.*
---
### Notes:
1. The actual amounts for the journal entries should be filled in based on the specific values involved in each transaction.
2. It is a good practice to include a brief description of each transaction in the journal entries for clarity.
3. Depending on the accounting software or system used, the terminology and structure might slightly vary.