BOOK KEEPING FORM TWO – BOOK OF PRIME ENTRY

JOURNALS

Journal is French word meaning “Daily Record”.
              It is used to record transactions at first before the businessman forget the exact details to post into respective ledger.

Journal sometimes maybe called Books of prime entry or subsidiary books or books of original entry where entries are made prior to their posting to the respective ledger.

TYPES OF JOURNAL
Types of books of prime entry are as follows;

(i)                Purchases journal/Day book.

(ii)             Purchases return journal.

(iii)            Sales Journal.

(iv)           Sales return journal.
(v) Cash Book.

(vi)              Journal proper.

Types of ledger:
There are main three kinds/types of ledger where entries/transactions are posted from the books of prime entries such as;
   (a) Purchases ledger.
   (b) Sales ledger.
   (c) General ledger.

PURCHASES JOURNAL

 Is the book which used to record daily purchases on credit only before posted to the ledger.

When goods are purchased on credit, the seller will send an invoice to the buyer.

Invoice: Is the document issued by the seller contain all  informations concerned to the goods purchased/sold.

The individual entries in the purchase day book are immediately posted to the credit of the supplies or creditors account in the bought ledgers while the total of the purchased journal is posted to debit of the purchases account in the general ledger usually on last day of the month.

                                                     
                                            PURCHASES JOURNAL

 
 

    EXAMPLE

Record the following business transaction in the purchases journal.

1^st July                 bought on credit from Ketena Ltd

                              20 bags of sugar each                      15,000

                              15 bags of wheat flour each              8,000

10^th July               brought credit from Salehe

                              20 dozen exercise books each       1,600

                              2 cartons of duplicating paper       24,000

14^th July               bought goods on credit from Jengua worth  27,000

25^th July               bought on credit from Kiharusi

                            10 pairs of  shoes each              12,000

                            14 boxes of shoes polish             7,000

Solution

 
 

                                               PURCHASES JOURNAL

 
 

EXERCISE 1

Record the following business transaction in a purchases journal. Show the total credit purchases at the end of the month.

1^st April                bought on credit from WAZO HILI LTD.

                              50 bags of cement each 7,000

                              25 sheets of asbestos each 4,600

11^th April bought from Aluminium African Ltd.

                              250 coecoqetid icon sheet each 2,500

                              160 icon beans each 1,800

20^th April             bought from YEMEN ENTERPRISES goods worth 189,000

24^th April             bought on credit from KANUTI  goods worth  320,000

30^th April             bought on credit from MNANDI

                              50 copies of civics books each 1,400

                              20 dozen of writing pad each 150

EXERCISE 2

Enter the following transaction in MLA WATU purchases day book and post to the ledger.

1^st Nov                      bought from Shah Stores

                                   5 dining tables with chair @  Tshs. 600

                                   5 side table @ Tshs. 300                                      

5^th Nov                       purchases from Mzigo store

                                    100 pairs of kanga @ Tshs.107

                                    50 pairs of Vitenge @ Tshs. 107

10^th Nov                     bought from wajamaa traders

                                    10 bags of white sugar @ Tshs 575

                                    25 bags of yellow beans @ Tshs 600

15^th Nov                     bought from Lipangila traders

                                    30 beds  @ Tshs 450.

                                    40 spring mattresses @  Tshs. 500

20^th Nov                     bought from Kuleana traders

                                    3 boxes of juice flavour @ Tshs.640

                                    6 boxes of straw @ Tshs.190

                                    40 boxes of glasses @ Tshs.1600
Solution.QN2

                                                        MLAWATU’S
                                           PURCHASES DAY BOOK 

 
 

 

 

 

 

 

 

 

 

 

 

 

                           

                                       PURCHASES LEDGERS

      DR                                 SHAH STORES A/C                                   CR

 
 

     DR                                      MZIGO STORES A/C                                CR

 
 

 
 

     DR                                     WAJAMAA TRADERS A/C                         CR

 
 

     DR                                LIPANGILA TRADERS   A/C                            CR

 
 

     DR                                   KULEANA TRADERS   A/C                             CR

 
 

EXERCISE.3

Enter the following business transaction in the purchases journal of Kasime then post to the ledger accounts.

7^th Sept           bought from KITUNGUU

                        6 dozen of shoes each 2100

                        10 dozen of socks each 500

18^th Sept         bought goods on credit from KANYAMA TRADERS worth 6000

28^th Sept         bought on credit from BABAJE TRADERS

                        10 dozen of mathematical set each 3000

                        36 mathematics books each 2000

EXERCISE 4

 
 

Kabila enterprises made the following purchases during the month of January 2000.

 1^st Jan bought from Kilombero

     100 bags of sugar 50kg   of tshs. 8,000 each

     50 bags of sugar 25kg of Tshs. 4000 each

 5^th Jan bought from Matatu shop

     100 boxes of cooking fat @ Tshs 650

    20 boxes of cooking fat @ Tshs 700

 10^th Jan bought from Moshi traders

 100 pairs of raincoat at 120 each

 60 pairs of rain boot of 430 each

 15^th Jan bought from Mombasa Stores

 99 bags of salt 100kg at 450 each

 25 bags of maize flour 10kg at 550 each

 20^th Jan purchases from Vijana enterprises

 69 bags of sulphate ammonium 50kg at 850 each

 102 bags of urea 10kg at 102 each

 25^th Jan   bought from Bahari beach Hotel

 25 used record player of 1500 each

 50 used television of 6,000 each

Enter the above transaction to Kabila purchases day book and open the respective ledgers as well as General ledger.

Solution.QN3
                                                              KASIME’S

                                            PURCHASES JOURNAL

 
 

 
 

                                                    PURCHASES LEDGER

      DR                                                KITUNGUU ^A/_C                                           CR

 
 

    DR                                         KINYAMA TRADERS ^A/_C                                   CR

 
 

 
 

    DR                                            BABAJE TRADERS ^A/_C                                    CR

 
 

 

 

Solution.QN4             
                                                                      KABILA’S

                                                        PURCHASES JOURNAL

 
 

                                                 PURCHASES LEDGERS
    DR                                        KILOMBERO A/C                                                     CR

 
 

      DR                                            MATATU SHOP A/C                                               CR

 
 

     DR                                               MOSHI A/C                                                     CR

 
 

     DR                                MOMBASA STORES A/C                                             CR

 
 

     DR                               VIJANA ENTERPRISES A/C                                      CR

 
 

     DR                                BAHARI BEACH HOTEL A/C               
                                                                                                                             CR

 
 

                             

 

SALES DAY BOOK

When a sale taken place on credit, the seller send an invoice to the buyer. The invoice is made out in duplicate and the sellers retains a copy – This copy is the source document from which a sales journal is written up.

POSTING THE SALES JOURNAL TO THE LEDGER

When the sales day book is posted to the ledger each customer is debited with the goods which has been received and the firm whose books are being kept is credited with the sales figure. Every customers has been debited with the good invoiced to him or her, and then,becoming a debtor for that amount.

EXAMPLE.1

Malingumu traders made the following sales during the month of April, record in the sales journal and then post to the ledgers.

1^st April          sold to Jaluo stores

                        100 bags of salt @ 5500

                        50 bags of sugar @ 7,500

10^th April       sold to Majambozi

                        15 boxes  of cooking fats @ 1700

                        12 pairs of sandals @ 650

16^th April       sold to Salome

                        20 pairs of bed sheet @ 3000

                        50 T. Shirts @ 3500

20^th April       sold goods to Kalimanzira worth 36,000 on credit

30^th April       sold to Baraka

                        12 bunches of banana @ 2500

                        10 bags of potatoes @ 6000
Solution1
                                                  MALINGUMU TRADER’S

                                                  SALES JOURNAL

 
 

      DR                                 JALUO TRADERS A/C                                              CR

 
 

       DR                                          MAJAMBOZI A/C                                                    CR

 
 

      DR                                             SALOME A/C                                                           CR

 
 

        DR                                       KALIMANZIRA A/C                                                  CR

                     
       DR                                              BARAKA A/C                                                         CR

 
 

 
 

                                                     GENERAL LEDGER

      DR                                            SALES ACCOUNT                                             CR

 
 

EXERCISE.1

Enter the following transaction into the sales journal of Mpangala and post to the ledgers.

1^st Jan                sales to P. Mpali

                           16 national radio @ 3500

                           25 record players @ 5200

7^th Jan            sold some equipment to Uyonga formed associates worth 19650

10^th Jan          sales to N. Sambamba

                        60 footballs @ 1760

                        100 pairs sport shoes @ 6000

                        90 packets of socks @ 90

15^th Jan             sold music instruments to Tunsume Ben Band 17,000

19^th Jan             sold various music instruments to pay Demas month 16,200

25^th Jan             sold to Madinda Sec School

                           65 account books @ 500

                           10 dozen ball paint pencil @ 1200

                           40 dozen staff ledger @ 80

27^th Jan             sold  forms tools to Hopetended and sons worth 9200

 
 

EXERCISE.2

 
 

Record the following transaction in the sales day book of Minani and then post to the ledgers .

 
 

4^th Feb.                            sales to H. Alindogo

                                         25 boxes of biscuits @ 950

                                         8 cases of beer @ 300

                                         150 bottles of double cola @ 450

9^th Feb                             sold to M. Salub

                                         500kg milk powder worth @ 6

                                         60 cartons soap @ 200

12^th Feb                           sold food worth 1700 to Mr. Chuwa

19^th Feb                           sold goods to:

 
 

1.     Idiasas   shs. 7,500
   

edu.uptymez.com

            L. Luka shs. 1,200

25^th Feb                           sales to P. Sufiani

                                         5 dozen table knives at T.shs. 8 each knife

                                         200 frying pans set @ T.shs. 70

                                         100 sufuria  at @ T.shs 65

27^th Feb                           sold Sandy goods to M. Mchafu ta T.shs. 18,000

28^th Feb                           sold to K. Kijiko

                                         700 bags cement of 50kg at @ T.shs. 85

                                         120 garden Focks @ T.shs. 25

                                         50 shoes valued of T.shs.  30

29^th Feb                           sold summary articles to S. Haruna worth T.shs. 1,660

                                             
Solution.QN1
                                          MPANGALA’S

                                                    SALES JOURNAL

 
 

 

 

 

 

 

 

 

 

 

 

 

                                                                   SALES LEDGER 

       DR                                                       P. MPALI A/C                                                 CR

 
 

      DR                                                UYONGA  A/C                                                          CR

 
 

      DR                                               N. SAMBAMBA A/C                                               CR

 
 

       DR                                       VARIOUS MUSIC A/C                                                   CR

 
 

      DR                                   MADINDA SCHOOL A/C                                                  CR

        DR                                HOPITENDED & SONS A/C                                               CR

 

 
 

PURCHASES  RETURN DAY BOOK  OR  RETURN OUTWARD JOURNAL

1.      What are the reasons which may make you to return goods,

While you had purchased from supplies?

(i)                Damaged of goods in transits

(ii)             Expired of goods

(iii)           Over supplies.

(iv)           Low quality.

(v)              Not of the sample ordered.

(vi)           Not of the color ordered.

 
 

2.      Goods sold and bought on credit may be return due to the following reasons.

(i)                Wrong types

(ii)             Wrong color

(iii)           Not the sample ordered

(iv)           Incomplete of goods

(v)              Damaged in transit

(vi)           Expired of goods

 
 

When goods are returned to the supplies prepared a document called CREDIT NOTE to inform the buyer that the half credit his account.
It is a reduction of the debit (claim) or it rectifies/ adjusts on over changed amount.

A record of the return of goods / purchases on credit is kept in a returns outwards journal (or purchased returns journal).

 
 

EXAMPLE.1

Enter the following items in Manjani’s purchases returns day book and post to the ledger.

   7^th Jan              return one bag of rice of R.T.C

                             Kilimanjaro Tshs. 500 not suitable for consumption.

10^th Jan          returns two boxes cooking fat @ Tshs 320 to Manji Xsons

                        & Lxd, not of the type ordered.

                        2 bags of beans at Tshs. 1000 was out of use

11^th Jan          returns one pair bed sheets Tshs. 170 and two shift @ Tshs. 350 to Moshi Traders poor qualities

 
 

                                                MANJANI’S

                                    PURCHASES RETURNS DAY BOOK

 
 

                                                PURCHASES RETURN LEDGERS.

      DR                                      R. T. C. KILIMANJARO SHOP A/C                          CR

 
 

     DR                                            MANJI AND SONS LTD  A/C                                 CR

     DR                                               MOSHI TRADERS  A/C                                           CR

                                                      

 

 
 

EXERCISE.1

Enter the following transaction in the purchases returns day book and post to the ledgers.

3^rd Mach                          returns to Wale wetu

                                         5 pairs of boots of @ T.shs. 200 not of the type orderd

                                         10 pair of sandals of @ T.shs 35 wrong size

5^th March                        Return to Mkwanda

                                         12 sponje mattress @ Tshs. 600, poor quality

                                         2 safari beds @ Tshs. 800, damaged in transit

12^th March                      return to Sangura

  250 metres  vitenge material @ T.shs 35, not up to started ordered

22^nd March                     Return to  Morogoro Shops Company

                                         300 pair of shoes @ T.shs 450, not of the size ordered

150 pairs children shoes @ T.shs. 250, a pair not of type ordered

200 dozen baby nephis at @ T.shs. 200, not of the colour order.

Solution

 
 

                              PURCHASES RETURNS DAY BOOK

 
 

POSTING TO THE LEDGERS.

 
 

        DR                                    WALE WETU A/C                                                             CR

 
 

        DR                                          MKWANDA  A/C                                                        CR

 
 

        DR                                           SUNGURA A/C                                                          CR

 
 

 
 

       DR                                   MOROGORO SHOP COMPANY  A/C                         CR

 
 

                                     GENERAL LEDGER

        DR                            PURCHASES RETURNS A/C                                             CR

 
 

EXERCISE.2

Enter the following transaction in NAMSHITUS purchases day book, purchases returns day book and post to the ledgers.

1^st May          Bought 10 bags of beans @ T.shs. 600 from National Distributors Ltd.

4^th May          purchase 2 dozen of cooking oil of @ T.shs. 50 from GEFCO

5^th May          return one bag of beans to National Distributors Ltd

8^th May          Bought 10 dozen of bed sheet from Kilimanjaro Text Tile @ T.shs. 2,200

10^th May        Returned  to GEFCO half a dozen cooking oil as they were not the quality ordered

15^th May        purchased from GEFCO 100 dozen of baby milk @ T.shs 600

20^th May        returned one dozen bed sheet to Kilimanjaro Text tiles as they were poor quality

25^th May        returned 5 dozen of baby milk to GEFCO spoilt in transit

26^th May        Purchased 20 dozen bed sheet from Kilimanjaro Text Tiles @ T.shs. 2,200

28^th May        reformed 5 dozen bed sheets as they were not of the size ordered from Kilimanjaro Textiles