Describe Preparation accounts receivable and accounts payable ledger postings

We can prepare accounts receivable and accounts payable ledger postings by using triple column cash book entries. Refer the data given below −

454 – Discount allowed ledger number (expense account)

480 – Discount received Léger number (revenue account)

Solution

The solution is as follows −

Accounts receivable ledger

M&CO            no. 28
Date
Description
PR
Amount($)
Date
Description
PR
Amount($)








April 5th
Cash
31
1350








April 5th
Discount allowed
31
18


H&CO            no. 18
Date
Description
PR
Amount($)
Date
Description
PR
Amount($)








April 24
Cash
31
2200








April 24
Discount allowed
31
16


Accounts payable ledger

S&CO            no. 42
Date
Description
PR
Amount($)
Date
Description
PR
Amount($)
April 3
Bank
31
1800








April 3
Discount Received
31
15








April 19
Bank
31
2100








April 19
Discount Received
31
12









XY Inc            no. 59
Date
Description
PR
Amount($)
Date
Description
PR
Amount($)
April 25
Bank
31
630








April 25
Discount Received
31
14








Updated on: 09-Jul-2021

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