Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first three months of business. What do transactions (6A) and (6B) represent?

Question

Brownlee Ltd is a newly established retail store selling plumbing hardware. Shown below are ledger accounts in T-account form, with entries made for the first three months of business.  What do transactions (6A) and (6B) represent?

Quizplus · Accepted Answer

Transactions (6A) and (6B) are both related to the sale of goods, but specifically, they represent sale of goods on credit and for cash, respectively. (6A) involves the issuance of an invoice to a customer, indicating that they owe money for purchased goods, while (6B) involves the immediate payment for goods at the time of purchase.

Brownlee Ltd Is a Newly Established Retail Store Selling Plumbing