$

FORMULA TO CALCULATE CREDIT SALES :

Cash received + dis allowed + irrecoverable debts + sales returns [return
inwards] + closing debtors – opening debtors = CREDIT SALES

FORMULA TO CALCULATE PURCHASES SALES :

Cash paid + dis received + return outward [purchase return ] + closing trade
payables -opening trade payables = CREDIT PURCHASES
Dissolution of partnership

Ordinary share account

BAl 150000
Bal c/f 220000 rights 30000
Bonus 40000

220000 220000

Share premium
Bal 25000
Bal c/f 37000
New share 12000

37000 37000
 Retained earnings.
Bal b/ d 28700
Bonus 3000 Profit 76520
Dividends 7200
Bal 95020
105220 105220