CHAPTER 8

BOOKS OF PRIME ENTRY: THE PURCHASES AND SALES

JOURNALS
Question 1

Purchases Journal
Date Details Invoice No. $
May 3 Whiteford Ltd 2730 1 230
11 P Sackley 9702 2 720
24 A Hereton 1818 990
27 Whiteford Ltd 2823 2 440
Total purchases 7 380

PURCHASES LEDGER

Dr Whiteford Ltd account Cr

May 3 Purchases 1 230
27 Purchases 2 440

Dr P Sackley account Cr
May 11 Purchases 2 720

Dr A Hereton account Cr
May 27 Purchases 990

GENERAL LEDGER

Dr Purchases account Cr
May 31 Purchases journal 7 380

Question 2

Purchases Journal
Date Details Invoice No. $
Jan 6 Disley Ltd 3372 630
11 P Harlew 4941 1 080
21 Disley Ltd 3418 1 250
27 P Harlew 5053 1 640
Total purchases 4 600

PURCHASES LEDGER

Dr Disley Ltd account Cr

Jan 6 Purchases 630
21 Purchases 1 250

Dr P Harlew account Cr
Jan 11 Purchases 1 080
27 Purchases 1 640
 GENERAL LEDGER

Dr Purchases account Cr
Jan 31 Purchases journal 4 600

Question 3

Sales Journal
Date Details Invoice No. $
Aug 5 Dartford Ltd T339 1 480
10 J Williams T340 920
23 Dartford Ltd T341 2 840
28 J Williams T342 1 550
Total sales 6 790

SALES LEDGER

Dr Dartford Ltd account Cr

Aug 5 Sales 1 480
23 Sales 2 840

Dr J Williams account Cr
Aug 10 Sales 920
28 Sales 1 550

GENERAL LEDGER

Dr Sales account Cr
Aug 31 Sales journal 6 790

Question 4

Sales Journal
Date Details Invoice No. $
June 2 Hopford Kitchens Ltd W1131 3 740
12 A Bandle W1132 2 670
15 Hopford Kitchens Ltd W1133 5 090
29 A Bandle W1134 1 480
Total sales 12 980

SALES LEDGER

Dr Hopford Kitchens Ltd account Cr

June 2 Sales 3 740
15 Sales 5 090

Dr A Bandle account Cr
June 12 Sales 2 670
29 Sales 1 480
 GENERAL LEDGER

Dr Sales account Cr
June 30 Sales journal 12 980

Question 5

Purchase invoices

Full price Trade discount Net amount

charged
Jan 12 Polonix Ltd 24 @ $25 = $600 10%; $60 $540
Jan 19 Quelta plc 18 @ $267 = $4 806 331/3%; $1 602 $3 204

Sales invoices

Full price Trade discount Net amount

charged
Jan 9 Alto Cuisines 16 @ $140 = $2 240 15%; $336 $1 904
Jan 18 Prozel Restaurants 8 @ $295 = $2 360 20%; $472 $1 888
Jan 27 Alto Cuisines 24 @$115 = $2 760 12.5%; $345 $2 415

Question 6

Purchase invoices

Full price Trade discount Net amount

charged
Oct 13 Inbell Ltd 25 @ $750 = $18 750 20%; $3 750 $15 000
Oct 19 Albi Supplies Ltd 30 @ $120 = $3 600 331/3%; $1 200 $2 400
Oct 29 Albi Supplies Ltd 22 @$90 = $1 980 12.5%; $247.50 $1 732.50

Sales invoices

Full price Trade discount Net amount

charged
Oct 4 Arbri Ltd 18 @ $54 = $972 25%; $243 $729
Oct 19 Telcaz Stores 24 @ $105 =$2 520 10%; $252 $2 268

Question 7

Purchases Journal
Date Details Invoice No. $
Jan 12 Polonix Ltd 540
19 Quelta plc 3 204
Total purchases 3 744

Sales Journal
Date Details Invoice No. $
Jan 9 Alto Cuisines 1 904
18 Prozel Restaurants 1 888
27 Alto Cuisines 2 415
Total sales 6 207
Question 8

Purchases Journal
Date Details Invoice No. $
Oct 13 Inbell Ltd 15 000.00
19 Albi Supplies Ltd 2 400.00
29 Albi Supplies Ltd 1 732.50
Total purchases 19 132.50

Sales Journal
Date Details Invoice No. $
Oct 4 Arbri Ltd 729
19 Telcaz Stores 2 268
Total sales 2 997

Question 9

Purchase invoices

Full price Trade discount Net amount

charged
Oct 12 Melfin Ltd 20 @ $160 = $3 200 25%; $800 $2 400
Oct 18 Harvey Bikes 15 @ $430 = $6 450 331/3%; $2 150 $4 300

Sales invoices

Full price Trade discount Net amount

charged
Oct 7 W Gifford 6 @ $400 = $2 400 20%; $480 $1 920
Oct 26 T Perry 8 @ $330 = $2 640 15%; $396 $2 244

Purchases Journal
Date Details Invoice No. $
Oct 12 Melfin Ltd 449 2 400
28 Harvey Bikes 223 4 300
Total purchases 6 700

Sales Journal
Date Details Invoice No. $
Oct 7 W Gifford 811 1 920
26 T Perry 812 2 244
Total sales 4 164

PURCHASES LEDGER

Dr Melfin Ltd account Cr

Oct 12 Purchases 2 400

Dr Harvey Bikes account Cr

Oct 28 Purchases 4 300
 SALES LEDGER

Dr W Gifford account Cr
Oct 7 Sales 1 920

Dr T Perry account Cr
Oct 26 Sales 2 244

GENERAL LEDGER

Dr Purchases account Cr
Oct 31 Purchases journal 6 700

Dr Sales account Cr
Oct 31 Sales journal 4 164

Question 10

Purchase invoices

Full price Trade discount Net amount

charged
June 5 Seaspray & Co. Ltd $8 400 25%; $2 100 $6 300
June 19 Angling Supplies Ltd $5 800 20%; $1 160 $4 640

Sales invoices

Full price Trade discount Net amount

charged
June 8 McEwan & Sons $1 200 15%; $180 $1 080
June 23 Jarel Fishing Supplies $1 830 331/3%; $610 $1 220

Purchases Journal
Invoice
Date Details No. $
June 5 Seaspray & Co. Ltd 5823 6 300
19 Angling Supplies Ltd 1072 4 640
Total purchases 10 940

Sales Journal
Invoice
Date Details No. $
June 8 McEwan & Sons 418 1 080
23 Jarel Fishing Supplies 419 1 220
Total sales 2 300

PURCHASES LEDGER

Dr Seaspray & Co. Ltd account Cr

June 5 Purchases 6 300

Dr Angling Supplies account Cr

June 19 Purchases 4 640
 SALES LEDGER

Dr McEwan & Sons account Cr

June 8 Sales 1 080

Dr Jarel Fishing Supplies account Cr

June 23 Sales 1 220

GENERAL LEDGER

Dr Purchases account Cr
June 30 Purchases journal 10 940

Dr Sales account Cr
June 30 Sales journal 2 300

Question 11

Purchases Journal
Invoice
Date Details No. $
May 14 TBX Manufacturing Ltd 3251 4 650
25 Universal Supplies Ltd 4481 6 400
Total purchases 11 050

Sales Journal
Invoice
Date Details No. $
May 7 Shivan Retail Unit 1082 3 060
17 Williams Retail Chain 1083 4 400
Total sales 7 460

PURCHASES LEDGER

Dr TBX Manufacturing Ltd account Cr

May 1 Balance 8 300
14 Purchases 4 650

Dr Universal Supplies Ltd account Cr

May 16 Bank 10 100 May 1 Balance 10 100
26 Purchases 6 400

SALES LEDGER

Dr Shivan Retail Unit account Cr

May 1 Balance 11 300 May 13 Bank 8 400
7 Sales 3 060

Dr Williams Retail Chain account Cr

May 1 Balance 5 780
17 Sales 4 400
 GENERAL LEDGER

Dr Bank account Cr
May 1 Balance 12 580 May 9 General
13 Shivan 8 400 expenses 1 700
Retail 16 Universal
Supplies 10 100
20 Purchases 4 900
28 Drawings 800

Dr Capital account Cr
May 1 Balance 166 000

Dr Cash account Cr
May 1 Balance 2 180 May 25 Wages 3 900
4 Sales 2 800

Dr Drawings account Cr
May 1 Balance 38 600
28 Bank 800

Dr Furniture and fittings account Cr

May 1 Balance 37 300

Dr General expenses account Cr

May 1 Balance 28 900
9 Bank 1 700

Dr Purchases account Cr
May 1 Balance 147 200
20 Bank 4 900
31 Purchases journal 11 050

Dr Sales account Cr
232
May 1 Balance 440
4 Cash 2 800
31 Sales journal 7 460

Dr Vehicles account Cr
May 1 Balance 44 800

Dr Wages account Cr
May 1 Balance 88 200
25 Cash 3 900
 Trial Balance at 31 May 2014
Dr Cr
$ $
Bank 3 480
Capital 166 000
Cash 1 080
Drawings 39 400
Furniture and fittings 37 300
General expenses 30 600
Purchases 163 150
Sales (i.e. Revenue) 242 700
Trade payables
TBX Manufacturing Ltd 12 950
Universal Supplies Ltd 6 400
Trade receivables
Shivan Retail Unit 5 960
Williams Retail Chain 10 180
Vehicles 44 800
Wages 92 100
428 050 428 050

Question 12

Purchases Journal
Invoice
Date Details No. $
Aug 5 Kingbridge Manufacturing Co. 384 17 800
21 Leon Products Ltd 8630 11 700
Total purchases 29 500

Sales Journal
Date Details Invoice No. $
Aug 9 Latoya Retail Unit 2293 6 640
23 Murray Stationery 2294 3 740
Total sales 10 380

PURCHASES LEDGER

Dr Kingbridge Manufacturing Co. account Cr

Aug 1 Balance 36 380
5 Purchases 17 800

Dr Leon Products Ltd account Cr

Aug 17 Bank 22 410 Aug 1 Balance 22 410
21 Purchases 11 700
 SALES LEDGER

Dr Latoya Retail Unit account Cr

Aug 1 Balance 12 320 Aug 27 Bank 18 960
9 Sales 6 640

Dr Murray Stationery account Cr

Aug 1 Balance 5 440
23 Sales 3 740

GENERAL LEDGER

Dr Bank account Cr
Aug 1 Balance 14 850 Aug 6 Drawings 700
27 Latoya 8 Purchases 5 400
Retail 18 960 11 Loan
interest 380
17 Leon
Products 22 410
29 General
expenses 2 150

Dr Bank loan account Cr

Aug 1 Balance 50 000

Dr Bank loan Interest account Cr

Aug 1 Balance 3 360
11 Bank 380

Dr Capital account Cr
Aug 1 Balance 426 000

Dr Cash account Cr
Aug 1 Balance 4 970 Aug 24 Wages 5 580
22 Sales 6 860

Dr Drawings account Cr
Aug 1 Balance 38 450
6 Bank 700

Dr General expenses account Cr

Aug 1 Balance 31 375
29 Bank 2 150

Dr Premises account Cr
Aug 1 Balance 600 000

Dr Purchases account Cr
Aug 1 Balance 535 280
8 Bank 5 400
31 Purchases journal 29 500
Dr Sales account Cr
Aug 1 Balance 847 685
22 Cash 6 860
31 Sales journal 10 380

Dr Vehicles account Cr
Aug 1 Balance 68 000

Dr Wages account Cr
Aug 1 Balance 68 430
24 Cash 5 580

Trial Balance at 31 August 2014

Dr Cr
$ $
Bank 2 770
Bank loan 50 000
Bank loan interest 3 740
Capital 426 000
Cash 6 250
Drawings 39 150
General expenses 33 525
Premises 600 000
Purchases 570 180
Sales (i.e. Revenue) 864 925
Trade payables
Kingbridge Manufacturing Co. 54 180
Leon Products Ltd 11 700
Trade receivables
Latoya Retail Unit --
Murray Stationery 9 180
Vehicles 68 000
Wages 74 010
1 406 805 1 406 805