C hapter 13: The purchases journal and

the purchases ledger

Contents of chapter
This chapter looks at the entry of purchases invoices into the purchases journal and their entry into double entry
accounts.

Notes for teachers

A purchases invoice received by us is the sales invoice sent to us by our supplier.
1

The steps for posting credit purchases to the purchases ledger and the general ledger are shown on
2
p. 132.

Students should be able to distinguish between trade creditors and non-trade creditors because different
3
books are used for recording transactions with them.

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 Answers to MCQs and exercises
13.1 C 13.2 A 13.3 D 13.4 D 13.5 B

13.6
Workings for purchases invoices:
20X6 $ $ $
Jul 1 D Siu 4 walkmans × $100 = 400
6 cameras × $200 = 1,200 1,600
Less Trade discount 25% 400 1,200

" 3 A Yeung 2 washing machines × $200 = 400

5 microwave ovens × $80 = 400
10 fridges × $150 = 1,500 2,300
Less Trade discount 20% 460 1,840

" 12 J Kwok 8 plasma TVs × $1,000 = 8,000

2 washing machines × $250 = 500 8,500
Less Trade discount 20% 1,700 6,800

" 20 B Pak 10 Discmans × $300 = 3,000

1
Less Trade discount 33 3
% 1,000 2,000

" 31 S Chu 4 dishwashers × $150 = 600

Less Trade discount 25% 150 450

(a) Purchases Journal

20X6 $
Jul 1 D Siu 1,200
" 3 A Yeung 1,840
" 12 J Kwok 6,800
" 20 B Pak 2,000
" 31 S Chu 450
" 31 Transferred to purchases account 12,290

(b) Purchases Ledger

D Siu
20X6 $
Jul 1 Purchases 1,200

A Yeung
20X6 $
Jul 3 Purchases 1,840

J Kwok
20X6 $
Jul 12 Purchases 6,800

B Pak
20X6 $
Jul 20 Purchases 2,000

S Chu
20X6 $
Jul 31 Purchases 450

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(c) General Ledger
Purchases
20X6 $
Jul 31 Total for the month 12,290

13.7X
(a) Purchases Journal
20X9 $
Oct 2 J Wong [($250 × 2 + $30 × 10) × 0.7] 560
" 11 R Chan [($150 × 6 + $80 × 6 + $25 × 4) × 0.75] 1,110
" 15 B Woo [($100 × 6 + $60 × 4) × 0.66] 560
" 22 Y Tam ($120 × 5 × 0.8) 480
" 30 N Fong ($40 × 8 × 0.75) 240
" 31 Transferred to purchases account 2,950

(b) Purchases Ledger

J Wong
20X9 $
Oct 2 Purchases 560

R Chan
20X9 $
Oct 11 Purchases 1,110

B Woo
20X9 $
Oct 15 Purchases 560

Y Tam
20X9 $
Oct 22 Purchases 480

N Fong
20X9 $
Oct 30 Purchases 240

(c) General Ledger

Purchases
20X9 $
Oct 31 Total for the month 2,950

13.8
(a) Purchases Journal
20X5 $
Mar 1 E Law [($800 + $280) × 0.75] 810
" 19 K Yu [($220 + $400) × 0.75] 465
" 31 J Hong ($270 × 0.666) 180
" 31 Transferred to purchases account 1,455

Sales Journal
20X5 $
Mar 8 W Fan ($460 + $550) 1,010
" 13 A Ho [($450 + $180 + $120) × 0.8] 600
" 24 P Sun [($170 + $250) × 0.9] 378
" 31 Transferred to sales account 1,988

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 (b) Purchases Ledger
E Law
20X5 $
Mar 1 Purchases 810

K Yu
20X5 $
Mar 19 Purchases 465

J Hong
20X5 $
Mar 31 Purchases 180

Sales Ledger
W Fan
20X5 $
Mar 8 Sales 1,010

A Ho
20X5 $
Mar 13 Sales 600

P Sun
20X5 $
Mar 24 Sales 378

(c) General Ledger

Sales
20X5 $
Mar 31 Total for the month 1,988

Purchases
20X5 $
Mar 31 Total for the month 1,455

13.9X
(a) Purchases Journal
20X7 $
Jan 1 K Chin [($360 + $440) × 0.75] 600
" 14 C Chow ($650 × 0.6) 390
" 31 L Pang ($880 × 0.5) 440
" 31 Transferred to purchases account 1,430

Sales Journal
20X6 $
Jan 5 S Ko [($250 + $550) × 0.7] 560
" 21 G Tung ($320 × 0.75) 240
" 26 T Yu [($410 + $170 + $330) × 0.9] 819
" 31 Transferred to sales account 1,619

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(b) Purchases Ledger
K Chin
20X7 $
Jan 1 Purchases 600

C Chow
20X7 $
Jan 4 Purchases 390

L Pang
20X7 $
Jan 31 Purchases 440

Sales Ledger
S Ko
20X7 $
Jan 5 Sales 560

G Tung
20X7 $
Jan 21 Sales 240

T Yu
20X7 $
Jan 26 Sales 819

(c) General Ledger

Purchases
20X7 $
Jan 31 Total for the month 1,430

Sales
20X7 $
Jan 31 Total for the month 1,619

13.10
Purchases Analysis Book
Invoice No. Total A–G H–M N–Z
20X7 $ $ $
May 1 C Au 21 960 960
" 2 K Poon 22 360 360
" 3 T Hung 23 575 575
" 4 D Chuen 24 106 106
" 5 K Sin 25 91 91
" 6 P Lee 26 450 450
2,542 1,066 1,025 451

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 13.11X
Purchases Analysis Book
Computer Household
Date Details Total equipment Camera Appliances
20X6 $ $ $ $
Jun 1 D Lai 50,000 50,000
" 4 W Pun 38,000 38,000
" 8 E Tam 15,000 15,000
" 11 Universal Ltd 24,500 24,500
" 16 Tech Ltd 17,000 17,000
" 20 C Li 43,500 43,500
" 23 Y Chu 31,000 31,000
" 24 H Chan 8,000 8,000
" 27 Tech Ltd 26,500 26,500
" 29 W Pun 43,000 43,000
296,500 91,500 124,500 80,500

13.12X
Sales Journal
Total Televisions Videos Games
20X7 $ $ $ $
May 11 P Tiu 960 960
" 13 N Mun 7,500 6,600 900
" 17 R Ng 750 750
" 26 W Shun 5,200 1,800 3,400
14,410 8,400 4,300 1,710

Returns Inwards Journal

Total Televisions Videos Games
20X7 $ $ $ $
May 14 W Mau 1,280 800 480
" 21 P Tiu 480 240 240
1,760 1,040 480 240

Purchases Journal
Total Televisions Videos Games
20X7 $ $ $ $
May 3 D C & Co 900 900
" 8 A Ho 6,800 3,200 3,600
" 20 W Ming 6,750 6,750
" 31 A Ho 3,150 3,150
17,600 13,100 3,600 900

Returns Outwards Journal

Total Televisions Videos Games
20X7 $ $ $ $
May 17 D C & Co 72 72
" 24 T T Ltd 525 525
597 – 525 72

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