Question

The following transactions took place for Penny Ltd in July: 12 July Sold goods on account to Huff Ltd for $1 200, terms 2/10, n/30. The cost of the goods sold was $800. 19 July Forwarded a credit note for $90 to Huff Ltd covering part of the goods sold on 12 July, which cost $60. The goods returned were not defective. 21 July Received from Huff Ltd a cheque in full settlement of the above transactions. Both Penny Ltd and Huff Ltd use the perpetual inventory system. Ignore GST. Required: Journalise all the above transactions in the general journal of: a) Penny Ltd, and b) HuffLtod Narrations are not required.