Hi, I am just finishing me level 1 and come across a question whereby items are returned to a suppler as faulty, he paid cash and the faulty items total is £x, he paid cash postage on the returned items costing £y.
Now I know to cr purchase rtns £x and open account for suppler and dr £x.
What I am unsure of is where to post the £y to, as a later question says he receives replacement goods which is straight forward enough dr purchase rtns £x cr supplier account £x, but for the postage he paid he receives a postal order which he cashes and puts in his till.
My confusion is where to post the postal charges he paid and the postal order he receives, any help will be much appreciated so I can understand where I am going.
I thought I solved it but when I have come to do my trial balance I have an £8 difference, my assignment doesn't ask for this but I did it just to check my work, I have spent all morning trying to figure it out and re-done the assignment 3 times sigh
SJ
Just spoke with my tutor and woohoo I sorted it, was giving me a very bad head, glad to have balanced it in the end!!
-- Edited by sjp on Wednesday 2nd of March 2011 01:59:04 PM
