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BOOK OF PRIME ENTRY-2

Solution.QN2


PURCHASES DAY BOOK/ PURCHASES JOURNAL
DATE
PARTICULARS
F
INVOICE DETAILS
INVOICE TOTAL
1st May
4th May
8th May
15th May
26th May
30th May
NATIONAL DISTRIBUTORS LTD
10 bags of beans @ T.shs. 600
GEFCO
2 dozen of cooking oil of @ T.shs. 50
KILIMANJARO TEXTILES
10 dozen of bed sheet @T.shs. 2,200
GEFCO
100 dozen of baby milk @ T.shs 600
KILIMANJARO TEXTILES
20 dozen bed sheet @ T.shs. 2,200


Transfer purchases a/c by Dr in General ledger
6,000
100
22,000
60,000
44,000
132,100
MSTITU’S
PURCHASES RETURNS DAY BOOK / RETURNS OUTWARDS
DATE
PARTICULARS
F
INVOICE DETAILS
INVOICE TOTAL

5th May
10th May
20th May
25th May
28th May



30th May
NATIONAL DISTRIBUTORS LTD
1 bags of beans @ T.shs. 600
GEFCO
½ dozen of cooking oil of @ T.shs. 50
KILIMANJARO TEXTILES
1 dozen of bed sheet @T.shs. 2,200
GEFCO
5 dozen of baby milk @ T.shs 600
KILIMANJARO TEXTILES
5 dozen bed sheet @ T.shs. 2,200

Transfer purchases returns by Cr. in General ledger
G.L

600

25
2,200

3,000

11,000

16,825


PURCHASES LEDGERS
DR NATIONAL DISTRIBUTORS LTD CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
1st May
Purchases returns
6000

1st May
purchases
6,000
DR GEFCO A/C CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
10th May
Purchases returns
25
4th May
purchases
100
DR KILIMANJARO TEXTILES A/C CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
20th May
Purchases returns
2,200
8th May
purchases
22,000

DR GEFCO A/C CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
25th May
Purchases returns
3,000
1st May
purchases
60,000

DR KILIMANJARO TEXTILES A/C CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
28th May
Purchases returns
11,000
26th May
purchases
44,000
GENERAL LEDGERS
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
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.
3rd Apr Mvita returned 2 dozen vitenge @ T.shs. 800, a dozen point by rain.
11th 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
14th April Mkali returned
10 dozen stencil @ 300 wrong size
12 reams duplicating paper @ 150 wrong size
25th 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)
DATE
PARTICULARS
F
INVOICE DETAILS
INVOICE TOTAL
3rd Apr
11th Apr
14th Apr

25th Apr
30th Apr
MVITA
2 dozen vitenge @ T.shs. 800
SAID LTD
5 bag ammonium sulphate @ T.shs. 680
30 gallon bags @ T.shs 12
MKOLI
10 dozen stencil @ 300
12 reams duplicating paper @ 150
SAID LTD
200 bags of maize @ T.shs 1,000
40 bags of grand nuts @ T.shs. 140

Transferred total to sales return a/c by debit in the General Ledger.

3,400
360

3,000
1,800

200,000
5,600
1,600
3,760



4,800



205,600
215,760


SALES LEDGERS.
DR MVITA A/C CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT

Trading a/c
1,600
3rd Apr
Sales returns
1,600
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
EXERCISE.1
Records the following transaction in sales returns day book and then opened the necessary ledger Accounts.
2nd May A credit note was sent to S. Sandala for goods returned by him @ T.shs.12.50, wrong types.
3rd 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.
9th May B. Mlowe received a credit note for goods returns by him worth Tshs. 1,200 not of the sample
13th May A credit note was sent to C. Chande for goods returned by him 2100 wrong size.
15th May M. Pili was given a credit note for g
ood value @ T.shs. 1,600 returned due to bad condition.
21st May returns of goods by C. Changula T.shs. 1,100 these were received in bad condition.
31st 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
DATE
Particulars
F
Invoice details
Invoice Total
2nd May

3rd May
9th May
13th May
15th May


21st May
31st May
S. SANDARA
goods returned by him @ T.shs.12.50
H. HASAN
– According to order on the sasesh 915
L. Lowe for goods by Tshs. 105
B. MLOWE
Goods returns by him worth T.shs.1,200
C. CHANDE
– for goods returned by him 2,100

M. PILI
– was given a credit note for good value @ T.shs. 1,600
C. CHANGULA
Goods in received in bad condition. T.shs. 1,100
N. TITTO
credit note for returns of goods by him worth T.shs. 3,000


transfer the total to sale returns a/c
OR
Return inward a/c in the General Ledger.
12.50
1,020
1,200
2,100



1,600
1,100


3,000

10,032.50
SALES LEDGER
DR S. SANDARA A/C CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
2nd May
Sales returns
12.50

GENERAL LEDGER

EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
DR H. HASAN ACCOUNT CR

DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
3rdMay
Sales returns
1,020

DR B. MLOWE ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT

9th May
Sales returns
1,200
DR C. CHANDE ACCOUNT CR
DR M. PILI ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
13th May
Sales returns
1,600
DR C. CHANGULA ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
21th May
Sales returns
1,100
DR N.TITTO ACCOUNT CR
DATE
DETAILS

F
AMOUNT
DATE
DETAILS
F
AMOUNT
31st May
Sales returns
3,000

EXAMPLE.1
A Raw land has the following purchases and sales for the March 1995
1st Mar Bought from Smith store silk 40, cotton 80 and less 25 percent trade discount.
8th March Sold to C. KELLY they him goods 28 woollen item 44 No trade discount
15th Mar Sold to A. HENRY silk T.shs. 33 linen 44, cotton goods 120 all less 20% Trade discount
23rd Mar Bought from C. Kelly cotton shs. 88, linen shs. 52 all less 25% trade discount.
24th Mar Sold to D. SANCRESTER linen goods . 42, cotton 48 less 10 percent trade discount
31st 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
DATE
Particulars
F
Invoice details
Invoice Total
1st Mar
2nd Mar
31st Mar
SMITH STORE
Silk……………….40
Cotton……………80
Less 25% 120 trade discount
C KELLY
Cotton 88
Linen 52
Less 25% 140 trade discount
J. HAMILTON
Liner goods……..270
Less: 33 1/3 % of 270 trade discount.


Transfer the total to purchases A/c by Dr in General ledger
40
80
120
30
88
52
140
35
270
90

90

105
180
375
RAW LAND
SALES DAY BOOK
DATE
Particulars
F
Invoice details
Invoice Total
8th Mar
15th Mar
24th Mar
31st Mar
GRANTLEY
Line goods 28
woollen item 44
A. HENRY
Silk goods 36
Linen goods 44
Cotton goods 120
Less 20% of 200 trade discount.
D. SANGSTER
Linen goods 42
Cotton good 48
Less 10% of 90 trade discount
Transfer the total to sales A/c by Cr in crv Ledger

G.R
28
44
36
44
120200
40
42
48
90
-9
72
160


81
313
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
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 th
e month
(b) post the item to the supplier Account
(c) transfer the total to the purchases Accounts.
Solution.QN1

EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2
EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2

PURCHASES LEDGERS.
DR C. LEE ACCOUNT CR
DATE
DETAILS

F
AMOUNT
DATE
DETAILS
F
AMOUNT
2nd Jul
purchases
450
DR M. ELLIOF ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
11th Jul
purchases
450
DR WOOD ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
18th Jul
purchases
525
DR B. PARKSON ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE

DETAILS
F
AMOUNT
25th Jul
purchases
450

DR FROMCIS ACCOUNT CR
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
30th Jul
purchases
420


GENERAL LEDGER.
DR PURCHASES A/C CR

ecolebooks.com
DATE
DETAILS
F
AMOUNT
DATE
DETAILS
F
AMOUNT
31thJul
Sundry creditors
2,290
31thJul
Trading a/c

2,290





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EcoleBooks | BOOK KEEPING O LEVEL(FORM TWO) NOTES - BOOK OF PRIME ENTRY-2

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