Purchases Journal and Purchases Ledger example

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Purchases Journal and Purchases Ledger example

Purchases Day Book example. Image credit Frank Wood's Business Accounting 1.

Purchases Day Book example. Image credit Frank Wood’s Business Accounting 1.

ZIMSEC O Level Principles of Accounts Notes: Purchases Journal and Purchases Ledger example

  • J Dzungu has the following purchases for the month of May 2015:
  • May 1 From D Muti: 4 DVDs at $60 each, 3 mini hi-fi units at $240 each. Less 25 per cent trade
    discount.
  • 3 From F Rugare: 2 washing machines at $280 each, 5 vacuum cleaners at $80 each, 2 dishwashers
    at $200 each. Less 20 per cent trade discount.
  • 15 From B Sakarombe: 1 hi-fi unit at $600, 2 washing machines at $320 each. Less 25 per cent
    trade discount.
  • 20 From J Dube: 6 CD/radios at $45 each. Less 331/3 per cent trade discount.
  • 30 From R Feruka: 4 dishwashers at $240 each. Less 20 per cent trade discount.
    Required:
    (a) Enter up the purchases day book for the month.
    (b) Post the transactions to the suppliers’ accounts.
    (c) Transfer the total to the purchases account.

Solution
First you need to deduct trade discount as it is not part of the double entry system.

Purchases Day Book     
Date: May 2015DetailsInvoiceFolioAmountGross
1D MutiD9393PL45720960
3F RugareR4774PL4610881360
15B SakarombeT78PL479301240
20J DubeK123PL48180270
30R FerukaG134PL49768960
Total36864790
    Purchase Ledger    
D Muti
DateDetailsFolioAmountDateDetailsFolioAmount
1 MayPurchasesPL45720
F Rugare
DateDetailsFolioAmountDateDetailsFolioAmount
3 MayPurchasesPL461088
B Sakarombe
DateDetailsFolioAmountDateDetailsFolioAmount
15 MayPurchasesPL47930
J Dube
DateDetailsFolioAmountDateDetailsFolioAmount
20 MayPurchasesPL48180
R Feruka
DateDetailsFolioAmountDateDetailsFolioAmount
30 MayPurchasesPL49768
    General Ledger    
Purchases Account
DateDetailsFolioAmountDateDetailsFolioAmount
31 MayCredit Purchases (May)3686

To access more topics go to the Principles of Accounts Notes page.

 

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By | 2017-01-17T11:17:02+00:00 October 7th, 2015|Notes, Ordinary Level Notes, Principles of Accounts Notes|0 Comments

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today’s world.

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