To facilitate payments for drinks and to reduce the risks of misappropriation of cash by waiters, the Wonderboom Walkers Club sells books of coupons to members at a discount of 5% of their face value.

Each book contains coupons of varying denominations with a total face value of R2.

Books of coupons are in the custody of, and are sold by, the club secretary who perforates the year of issue on each book sold.

In terms of the club’s rules, the coupons are valid only in the financial year of issue and in the financial year immediately following.

These transactions relate to coupons during the years up to 31 December 20x3:

Value of coupons surrendered by members for drinks:

You are required to:

1. Record all entries (including closing entries) relating to coupons in the general journal of the Wonderboom Walkers Club for the years ending 31 December 20x1, 20x2 and 20x3.

2. Post the journal entries to the ledger accounts and balance the real accounts at the end of each year.

Transcribed Image Text:

Coupons issued to members 20x1 20x2 20x3 No. of R2 books 3 300 5 200 4 800 Value R6 600 R10 400 R9 600 Discount R330 R520 R480 Cash received R6 270 R9 880 R9 120