Accounting and Financial Management - Desklib

Running head: ACCOUNTIGN AND FINANCIAL MANAGEMENT
Accounting and Financial Management
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTIGN AND FINANCIAL MANAGEMENT
Table of Contents
Answer to question 1..................................................................................................................2
Answer to question 2:.................................................................................................................3
Bibliography:..............................................................................................................................5

2ACCOUNTIGN AND FINANCIAL MANAGEMENT
Answer to question 1:
Journal Entries
In the Books of Lilly Heating and Air Company
Date Particulars Amount Amount
A Purchase A/c ................Dr
$
36,000
To Schell Co.........................A/c
$
35,640
To Discount Received .......A/c
$
360
(Being merchandise purchased on account from
Schell Co and received trade discount of 1%)
B Schell Co A/c.............................Dr
$
35,640
To Cash .................................A/c
$
35,640
(Being sum owed to Schell Co paid)
C Accounts Payable Schell Co A/c...............Dr
$
9,000
To Purchase Return
$
9,000
(Being return of merchandise purchased from
Schell Co)
D Purchase A/c.......................................Dr
$
5,000
To Schell Co ..........................A/c
$
5,000
(Being merchandise purchased from Schell Co)
E Cash A/c...........................................Dr
$
9,000
To Schell Co----------------------A/c
$
9,000
(Being the receipt of purchase return from Schell
Co)
Answer to question 2
Fifo Method
Date Purchase Issued Balance Total
02-Apr 1 units @ 100 1 units @ 100 100