Recording of transaction

Martel store completed the following merchandising transaction in the month of April 2010. At the beginning of April, the ledger of the said store showed cash of P75,000 and Martel, Capital of P75,000.

April 1- Purchased merchandise on account from Daffy Co. amounting to P50,000, terms:2/10,n/30.
April 2- Sold merchandise on account P8,000, terms:2/10, n/30.

Recording for April 1 transaction
Purchase a/c p50000 DR
Daffy co. a/c P50000 CR

Recording for April 2 transaction
Cash or bank A/c p8000 Dr
Sales a/c p8000 Cr
At the end of the month,
Cash balance will be p33000(p75000-50000+8000)

April 1)
Debit Purcahses or Merchandise Inventory for the amount
Credit Accounts Payable for the amount.

April 2)
Debit Accounts Receivable for the amount
Credit Sales Revenue for the amount.