1. **Problem Statement:** Prepare the Sales Account and Sales Returns Account for the year ended 31 March 2025 using the given transactions and balances. 2. **Given Data:** - Opening balance Sales Account (1 March 2025): $71,730 - Opening balance Sales Returns Account (1 March 2025): $410 - Sales to Ben (25 March): $570 less 10% trade discount = $570 \times (1 - 0.10) = $513 - Goods returned by Ben (29 March): $85 less 10% trade discount = $85 \times (1 - 0.10) = $76.50 - Sales to Clara (30 March): $316 (no discount) - Cash sales (31 March): $50 (included in total sales) - Total sales for March: $829 (513 + 316) - Total sales returns for March: $76.50 3. **Sales Account Preparation:** - Debit side: Sales Returns and Balance c/d (closing balance) - Credit side: Opening balance and Sales for the month 4. **Sales Returns Account Preparation:** - Debit side: Opening balance and Returns for the month - Credit side: Balance c/d (closing balance) 5. **Calculations:** - Total sales for March = $829 + $50 (cash sales) = $879 - Total sales returns for March = $76.50 6. **Sales Account:** \begin{align*} \text{Debit side} & \quad \text{Credit side} \\ \text{Date} & \text{Details} & \text{Amount} & \text{Date} & \text{Details} & \text{Amount} \\ \text{31 Mar} & \text{Sales Returns} & 76.50 & \text{1 Mar} & \text{Balance b/d} & 71730 \\ \text{31 Mar} & \text{Balance c/d} & x & \text{31 Mar} & \text{Sales} & 879 \\ \end{align*} Balance c/d $x$ is calculated by balancing the account: $$71730 + 879 = 76.50 + x \implies x = 71730 + 879 - 76.50 = 72532.50$$ 7. **Sales Returns Account:** \begin{align*} \text{Debit side} & \quad \text{Credit side} \\ \text{Date} & \text{Details} & \text{Amount} & \text{Date} & \text{Details} & \text{Amount} \\ \text{1 Mar} & \text{Balance b/d} & 410 & \text{31 Mar} & \text{Balance c/d} & y \\ \text{31 Mar} & \text{Returns} & 76.50 & \\ \end{align*} Balance c/d $y$ is calculated by balancing the account: $$410 + 76.50 = y \implies y = 486.50$$ 8. **Final Answer:** **Sales Account** \begin{tabular}{l l r l l r} Date & Details & $ & Date & Details & $ \\ 1 Mar & Balance b/d & 71730 & 31 Mar & Sales & 879 \\ 31 Mar & Sales Returns & 76.50 & 31 Mar & Balance c/d & 72532.50 \\ \end{tabular} **Sales Returns Account** \begin{tabular}{l l r l l r} Date & Details & $ & Date & Details & $ \\ 1 Mar & Balance b/d & 410 & 31 Mar & Balance c/d & 486.50 \\ 31 Mar & Returns & 76.50 & & & \\ \end{tabular} These accounts show the updated balances after recording the transactions for March 2025.