1.

XYZ phones need to create sub ledgers for their own office use but don't need to create
accounts receivable accounts because all the sales transactions were made to individual
customers not to any companies also all the payments were received on cash on the same
date when the transactions took place so there's no need for creating accounts receivable
accounts for the XYZ phone company.
The ledgers are given below:
XYZ Phones
Cash Account
General ledger
Dr. Cr.
Date Amount Date Amount
2020
Dec-5 Sales revenue 54000 Dec-31 Balance C/D 54000

2021
Jan-1 Balance B/D 54000

XYZ Phones
Sales Revenue Account
Sub ledger
Dr. Cr.
Date Amount Date Amount
2020
Dec-31 Balance C/D- 54000 Dec-5 Cash 54000

2021
Jan-1 Balance B/D 54000
 2. XYZ phones need to create sub ledgers & accounts receivable accounts because all the
sales transactions were made to a company also all the payments weren’t received on
cash on the same date when the transactions took place. Accounting uses revenue
recognition model which refers that whenever there's e transaction was made that
transactions must be recorded on that particular date whether it is on cash or due.
The ledgers are given below:
XYZ Phones
Accounts Receivable Account
General ledger
Dr. Cr.
Date Amount Date Amount
2020 2020
Dec-5 Sales revenue 54000 Dec-6 Cash 54000

XYZ Phones
Sales Revenue Account
Sub ledger
Dr. Cr.
Date Amount Date Amount
2020
Dec-31 Balance C/D 54000 Dec-5 Accounts Receivable 54000

2021
Jan-1 Balance B/D 54000
 XYZ Phones
Cash Account
Sub ledger
Dr. Cr.
Date Amount Date Amount
2020
Dec-6 Accounts Receivable 54000 Dec-31 Balance C/D 54000

2021
Jan-1 Balance B/D 54000