BOOK KEEPING FORM TWO – BOOK OF PRIME ENTRY-2

Solution.QN2 

PURCHASES DAY BOOK/ PURCHASES JOURNAL                                                                                                                                                          

 
 

 
 

                                               MSTITU’S 
PURCHASES RETURNS DAY BOOK / RETURNS OUTWARDS

 

 

 

 

 

 

 

 

 

 

 

                                                   PURCHASES LEDGERS

      DR                                 NATIONAL DISTRIBUTORS LTD                                  CR

       DR                                            GEFCO A/C                                                          CR

 
 

     DR                               KILIMANJARO TEXTILES A/C                                    CR

 
     DR                                                  GEFCO A/C                                                       CR

 
 

        DR                                       KILIMANJARO TEXTILES A/C                               CR

 
 

                                                         GENERAL LEDGERS

   

    

 RETURN INWARDS JOURNAL  OR  SALES RETURN DAY BOOK

When goods are returned by the customer to the supplier a CREDIT NOTE Is issued  by the supplier to the customers informs the customer that his account has been dully CREDITED  .

A record of the returns of goods sold or credit is kept in returns inwards journal. They are immediately posted to the credit side of the customer’s account in the sales ledger and the total at returns- inwards is debited in the returns inwards account in the general ledger.

NOTE

A customer send a debit note to the supplies when the returned goods and the supplies issued a credit note  to indicate that the customers account has been credited by the supplier.

EXAMPLES

The following are the returns inwards.

3^rd Apr           Mvita returned 2 dozen vitenge @ T.shs. 800, a dozen point  by rain.

11^th Apr         issued a credit note to Said Ltd  for goods retuned

                        5 bag ammonium sulphate @ T.shs. 680 under weight

                        30 gallon bags @ T.shs 12, wrong size

14^th April       Mkali returned

                        10 dozen stencil @ 300 wrong size

12 reams duplicating paper @ 150 wrong size

25^th Apr          return from Said Ltd

                        200 bags of maize @ T.shs 1,000 dully expired

                        40 bags of grand nuts @ T.shs. 140, dully expired

            SALES RETURNS JOURNAL

                                          (RETURNS INWARD BOOKS)
 

             

                                                        SALES LEDGERS.

       DR                                                MVITA A/C                                                            CR

 
 

 

                                               

EXERCISE.1

Records the following transaction in sales returns day book and then opened the necessary ledger Accounts.

2^nd May         A credit note was sent to S. Sandala for goods returned by him @ T.shs.12.50, wrong types.

3^rd May          returns at goods by H. Hasan Tshs. 91.5 hot according to order on the sasesh date a credit note was sent to L. Lowe for goods returns by him T.shs. 105 damaged in transist.

9^th May          B. Mlowe  received a credit note for goods returns by him worth Tshs. 1,200 not of the sample

13^th May        A credit note was sent to C. Chande for goods returned by him 2100 wrong size.

15^th May        M. Pili was given a credit note for good value @ T.shs. 1,600 returned due to bad condition.

21^st May        returns of goods by C. Changula T.shs. 1,100 these were received in bad condition.

31^st May        N. Titto get a credit note for returns of goods by him worth Tshs. 3,000 not on the sample.

Solution.QN1

                                      SALES RETURNS JOURNAL

 
 

                                                             SALES LEDGER
            DR                                          S. SANDARA A/C                                      CR

                                             
                                                 GENERAL LEDGER

  DR                                             H. HASAN ACCOUNT                                CR

 
 

    DR                                               B. MLOWE ACCOUNT                                        CR

 
 

      DR                                            C. CHANDE ACCOUNT                                        CR

 
 

      DR                                                M. PILI ACCOUNT                                             CR

 
 

           
 

       DR                                     C. CHANGULA ACCOUNT                                          CR

 
 

      DR                                          N.TITTO ACCOUNT                                                 CR

 
 

EXAMPLE.1

A Raw land has the following purchases and sales for the March 1995

1^st Mar           Bought from Smith store silk  40, cotton  80 and less 25 percent trade discount.

8^th March       Sold to C. KELLY they him goods  28 woollen item  44 No trade discount

15^th Mar         Sold to  A. HENRY silk T.shs. 33 linen  44, cotton goods  120 all less 20% Trade discount

23^rd Mar        Bought from C. Kelly cotton shs. 88, linen shs. 52 all less 25% trade discount.

24^th Mar         Sold to D. SANCRESTER linen goods . 42, cotton 48 less 10 percent trade discount

31^st Mar         Bought from J. Hamitton linen goods 270 less 23 ½ percent trade discount

 
 

Required :

(a)  Prepare purchases and sales journal of Raw land from above

(b)  Post the item to personal Account

(c)  Post the total of the journal to the sales and purchases Account.
Solution

                                                            RAW LAND’S

                                                 PURCHASES DAY BOOK

 
 

                                                                    RAW LAND
                                                            SALES DAY BOOK

 
 

                                      

EXERCISE.1

C . Philips has the following purchases for the month of June 2002

June 2 from C. Lee 2 sets of golf clubs @ T.shs. 250

                        5 football @ T.shs. 20

                        Less 25 percent trade discount

June 11          From M. Elliot 6 ericket bats @ 20

                        6 ice skates @30

                        4 rugby bales @ 25

                        Less 25 percent trade discount

June 18          from wood

                        6 set of golf trophics @ 100 

                        4 set of gulf club @ 300

                        Less 33 ¹/₃  percent trade discount

June 25          From B. Parksons. 5 criekit bats @ 40

                        Less 25 percent trade discount

June 30          From fromeis 8 goal gasts @ 70

                        Less 25 percent trade discount

Required;

(a)  Enter of the purchases journal for the month

(b)  post the item to the supplier Account

(c)  transfer the total to the purchases Accounts.
Solution.QN1

                                                     
     
       
     
                                                   PURCHASES LEDGERS.

        DR                                             C. LEE ACCOUNT                                               CR

 
 

      DR                                               M. ELLIOF ACCOUNT                                      CR

          DR                                      WOOD ACCOUNT                                                       CR

 
 

        DR                                         B. PARKSON ACCOUNT                                        CR

 
 

        DR                                            FROMCIS ACCOUNT                                         CR

 
                                         
                                                     GENERAL LEDGER.
  DR                                               PURCHASES A/C                                            CR