Chapter 3 Accounting for Inventories

3.1
Transactions Account to be debited Account to be credited
Bought goods paying by cheque Purchases Bank
Bought goods on credit from L Collins Purchases L Collins
Bought Vehicle on credit from M Hayden Vehicle M Hayden
Sold goods on credit to L Marshall L Marshall Sales
Cash sales Cash Sales
Cash sales directly paid in the bank Bank Sales
Retuned goods to L Collins L Collins Return Outwards
L Marshall returned goods back to us Return Inwards L Marshall
Returned vehicle to M Hayden M Hayden Vehicle

3.2
Transactions Account to be debited Account to be credited
Cash purchases Purchases Cash
Bought goods on credit from L Hanson Purchases L Hanson
Purchased goods for cash from M McGraw Purchases Cash
Bought machinery on credit from R Ponting Machinery R Ponting
Sold goods on credit to L Marshall L Marshall Sales
Goods sold to K. Anderson and amount was collected by cheque Bank Sales
Goods sold to P. Thorpe for cash Cash Sales
Retuned goods to L Hanson L Hanson Return Outwards
Goods returned by L Marshall back to us Return Inwards L Marshall
Returned machinery to R Ponting R Ponting Machinery

3.3
Transactions Account to be debited Account to be credited
Oct. 01 Cash $5 000
Started business with cash $5 000, bank $16 000 Capital $21 000
Bank $16 000
02 Bought goods paying by cheque $1 800 Purchases $1 800 Bank $1 800
04 Bought goods on credit from W. Hinds $2 700 Purchases $2 700 W Hinds $2 700
05 Bought Machinery on credit from G. Hopper $2 500, Machine $2 500 G Hopper $2 500
Cash sales $1 500 Cash $ 1500 Sales $1 500
09 Retuned goods to W. Hinds $200, sold goods on credit W Hinds $200 Return out $200
to J. Brown $3 600 J Brown $3 600 Sales $3 600
14 Bought goods on credit from R. Peter $1 300 Purchases $1 300 R. Peter $1 300
18 J. Brown returned goods back to us $700 Return In $700 J Brown $700
22 Cheque received from J Brown $600 Bank $600 J Brown $600
23 Cash paid to R. Peter in full settlement of his account R Peter $1 300 Cash $1 300
28 Bought goods from W. Hinds $3 400 out of which $1 400 Cash $1 400
Purchases $3 400
has been paid in cash W Hinds $2 000
29 Goods sold to J. Brown for $3 400 J Brown $3 400 Sales $3 400
31 Cheque given to W. Hinds $800. W. Hinds $800 Bank $800
3.4
Transactions Account to be debited Account to be credited
Jan 01 Owner started business with cash $7 000, Bank $8 000 Cash $7 000
Capital $15 000
Bank $8 000
Jan 01 Cash purchases $5 000 Purchases $5 000 Cash $5 000
Jan 02 Purchased goods on credit from R. David $3 000 Purchases $3 000 R. David $3 000
Jan 02 Sold goods for cash to M. Johnson $2 000 Cash $2 000 Sales $2 000
Jan 03 Sold goods to K. George for $2 500 out of which $1 000 Cash $ 1 000
Sales $2 500
has been received in cash K. George $1 500
Jan 04 Goods returned to R. David $400 R. David $400 Return out $400
Jan 05 Sold goods on credit to M. Johnson $1 500, Cash M. Johnson $1 500 Sales $1 500
received from K. George $300 Cash $300 K. George $300
Jan 06 Goods returned from M. Johnson $200 Returns In $200 M. Johnson $200
Jan 07 Goods taken away by the owner for his personal use
Drawings $400 Purchases $400
$400