Question
ansations of Packets would be used to record each of the following (Subsidiary journals)
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.
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.
Answers
GPT-4o mini
In accounting, subsidiary journals are used to record specific types of transactions. Based on the scenarios provided, here are the appropriate subsidiary journals that would be utilized for each situation described for "Pocket's Full":
### 3.3.1: Pocket's Full returned stationery to a creditor as it was damaged.
**Journal Type**: **Purchase Returns Journal** (or **Purchase Returns and Allowances Journal**)
Reason: This journal records returns of purchased goods to suppliers. In this case, Pocket's Full is returning damaged stationery to a creditor, which is a reversal of a purchase transaction.
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### 3.3.2: A debtor paid directly into the bank account of Pocket's Full to settle the outstanding amount due.
**Journal Type**: **Cash Receipts Journal**
Reason: This journal is used to record all cash and bank receipts. Since a debtor has paid directly into the bank account, this transaction will be recorded in the Cash Receipts Journal, reflecting the increase in cash or bank balance due to the payment received.
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### 3.3.3: Rent received was incorrectly posted to the commission received account. The error needs to be corrected.
**Journal Type**: **General Journal**
Reason: When correcting errors, the General Journal is typically used to make adjusting entries. In this case, since an error has occurred in posting rent received to the wrong account (commission received), you would use the General Journal to adjust the entries accordingly. This could involve debiting the Commission Received account and crediting the Rent Received account to correct the mistake.
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These journals help maintain organized records for transactions and ensure that financial statements accurately reflect the business’s activities.
### 3.3.1: Pocket's Full returned stationery to a creditor as it was damaged.
**Journal Type**: **Purchase Returns Journal** (or **Purchase Returns and Allowances Journal**)
Reason: This journal records returns of purchased goods to suppliers. In this case, Pocket's Full is returning damaged stationery to a creditor, which is a reversal of a purchase transaction.
---
### 3.3.2: A debtor paid directly into the bank account of Pocket's Full to settle the outstanding amount due.
**Journal Type**: **Cash Receipts Journal**
Reason: This journal is used to record all cash and bank receipts. Since a debtor has paid directly into the bank account, this transaction will be recorded in the Cash Receipts Journal, reflecting the increase in cash or bank balance due to the payment received.
---
### 3.3.3: Rent received was incorrectly posted to the commission received account. The error needs to be corrected.
**Journal Type**: **General Journal**
Reason: When correcting errors, the General Journal is typically used to make adjusting entries. In this case, since an error has occurred in posting rent received to the wrong account (commission received), you would use the General Journal to adjust the entries accordingly. This could involve debiting the Commission Received account and crediting the Rent Received account to correct the mistake.
---
These journals help maintain organized records for transactions and ensure that financial statements accurately reflect the business’s activities.