1. **Problem Statement:** We are given sales transactions for March 2025 with trade discounts and returns. We need to complete the Sales Day Book and Sales Returns Day Book, then prepare the Sales Account and Sales Returns Account for the year ended 31 March 2025. 2. **Trade Discount Calculation:** Ben receives a 10% trade discount on sales. So, for Ben's sales on March 25: $$570 \times (1 - 0.10) = 570 \times 0.90 = 513$$ 3. **Sales Day Book Completion:** - March 25: Ben's discounted sale = $513 - March 30: Clara's sale = $316 (no discount) - March 31: Total sales for the month = $513 + 316 = $829 4. **Sales Returns Day Book Completion:** - March 29: Ben returned goods worth $85 before discount, so after 10% discount: $$85 \times 0.90 = 76.50$$ - March 31: Total returns = $76.50 5. **Prepare Sales Account:** - Opening balance (credit) on 1 March 2025 = $71,730 - Add sales for March (credit) = $829 - Deduct sales returns (debit) = $76.50 - Calculate closing balance (credit) transferred to income statement: $$\text{Closing balance} = 71730 + 829 - 76.50 = 72582.50$$ 6. **Prepare Sales Returns Account:** - Opening balance (debit) on 1 March 2025 = $410 - Add returns for March (debit) = $76.50 - Calculate closing balance (debit) transferred to income statement: $$\text{Closing balance} = 410 + 76.50 = 486.50$$ --- ### Final answers: **Sales Day Book:** | Date | Customer | $ | |---|---|---| | Mar 25 | Ben | 513 | | Mar 30 | Clara | 316 | | Mar 31 | Total | 829 | **Sales Returns Day Book:** | Date | Customer | $ | |---|---|---| | Mar 29 | Ben | 76.50 | | Mar 31 | Total | 76.50 | **Sales Account:** | Date | Details | $ | Date | Details | $ | |---|---|---|---|---|---| | 1 Mar | Balance b/d | 71730 | 25 Mar | Sales Day Book | 513 | | 30 Mar | Sales Day Book | 316 | 29 Mar | Sales Returns Day Book | 76.50 | | 31 Mar | Income Statement (bal. c/d) | 72582.50 | | | | **Sales Returns Account:** | Date | Details | $ | Date | Details | $ | |---|---|---|---|---|---| | 1 Mar | Balance b/d | 410 | 29 Mar | Sales Returns Day Book | 76.50 | | 31 Mar | Income Statement (bal. c/d) | 486.50 | | | |