ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

Books of prime entry

1 Purchase journal (Purchase day book) – when goods/ items bought on credit
2 Sales journal (sales day book) – when goods/ items sold on credit
3 Purchase returns journal (Purchase returns day book) – when goods/ items returned
back to supplier
4 Sales returns journal (sales returns day book) – when goods/ items returned by
customer
5 Cash book – For recording cash/ bank transactions
6 Journal – For all other transactions

Ledgers (A set of T – accounts)

1. Sales ledger (Trade receivables ledger) – all customers individual accounts

2. Purchase ledger (Trade payables ledger) – all suppliers individual accounts
3. General / Nominal ledger - All other T accounts

Page 1
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

1. The following invoices, in respect of purchases of goods for resale, have been received:

2020 $
2 Jan F. Day 850
10 Jan G. Moon 1 225
14 Jan S. Cox 915
18 Jan F. Day 1100
25 Jan G. Moon 460
28 Jan F. Day 230
30 Jan S. Cox 1 015

Required:

(a) Open up the purchases day book and enter the above invoices in it. Total the purchases day
book for the month.

(b) Open the suppliers’ accounts and the purchases account. Post the necessary entries from
the day book to these accounts

Purchase Journal or Purchase day book

Date Details $
2020
Jan 2 F. Day 850
10 Jan G. Moon 1225
14 Jan S. Cox 915
18 Jan F. Day 1100
25 Jan G. Moon 460
28 Jan F. Day 230
30 Jan S. Cox 1015
31 Jan Transfer to purchase account in nominal ledger 5795

Purchase Ledger
F. Day
$ $
Jan 2 Purchases 850
18 Purchases 1100
28 Purchases 230

Page 2
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

G. Moon
$ $
Jan 10 Purchases 1225
25 Purchases 460

S. Cox
$ $
Jan 14 Purchases 915
30 Purchases 1015

Nominal ledger

Purchases account
2020 $ $
Jan 31 Total credit 5795

Page 3
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

2. The book-keeper of Priory Printers Limited has the following purchases invoices (PI) and sales
invoices (SI) to enter into the accounts for the week commencing 10 June 2017.

2020 $
10 Jun PI 2472 Paper Supplies Ltd 480
10 Jun SI 1347 Wyvern Publishing 625
11 Jun PI 8771 Severn Traders 170
12 Jun PI X244 Computer Services Ltd 196
12 Jun SI 1348 House of Cards Ltd 298
13 Jun PI 2491 Paper Supplies Ltd 560
13 Jun SI 1349 Lennox Publishers 738
14 Jun SI 1350 House of Cards Ltd 255
14 Jun SI 1351 Wyvern Publishing 565

Required:

(a) Write up and total Priory Printers Limited's purchases day book and sales day book for the
week commencing 10 June 2020.

(b) Record the transactions in Priory Printers Limited's purchases ledger, sales ledger, and
nominal ledger.

Purchase Journal (Purchase day book)

Date Details $
2020

Sales Journal (Sales day book)

Date Details $
2020

Page 4
ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

Purchase Ledger

Paper supplies limited

$ $

Severn Traders
$ $

Computer Services Ltd

$ $

Sales Ledger

Wyvern Publishing
$ $

House of Cards Ltd

$ $

Lennox Publishers
$ $

Page 5
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

Nominal ledger

Purchases account
2020 $ 2020 $

Sales account
2020 $ 2020 $

Page 6
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

3. You are required to enter up the following items in the books, post to the personal accounts and
show the transfers to the nominal Ledger.

2020
January 1 Credit purchases from M Mann $450 and C Wilkie $980.
January 4 Credit sales to E Palmer $280
January 8 Goods retuned by us to Wilkie worth $132
January 11 Credit sales to L Jasmine $450
January 14 Goods retuned to us by E. Palmer worth $110
January 16 Credit purchases from A Bali $750
January 19 Goods retuned by us to A. Bali $125
January 21 Credit sales to E Palmer $1050
January 26 Credit purchases from M Mann for $870
January 31 Goods retuned to us by L Jasmine worth $50

Purchase Journal (Purchase day book)

Date Details $
2020

Sales Journal (Sales day book)

Date Details $
2020

Purchase returns Journal (returns outwards day book)

Date Details $
2020

Page 7
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

Sales returns Journal (returns inwards day book)

Date Details $
2020

Purchase Ledger
M Mann
$ $

C Wilkie
$ $

A Bali
$ $

Sales Ledger

L. Jasmine
$ $

E. Palmer
$ $

Page 8
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

Nominal ledger

Purchases account
2020 $ 2020 $

Sales account
2020 $ 2020 $

Purchases returns account

2020 $ 2020 $

Sales returns account

2020 $ 2020 $

Page 9
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

4. R Miller, a sole trader, has the following transactions for the month of June 2020.

2020 $
June 1 Purchased goods on credit to M Stanhope 42
June 5 Sold goods on credit to J Forbes 65
June 9 Bought goods on credit from T Fox 24
June 12 Returned goods to Stanhope 12
June 15 Sold goods to K Lesley 81
June 21 Goods retuned by Forbes 24
June 25 Goods returned by Lesley 33

You are required to do the following:

(a) Prepare the relevant Daybooks for R Miller for June.

(b) Post the items to the personal accounts.
(c) Transfer the totals the relevant accounts in the general ledger.

Purchase Journal (Purchase day book)

Date Details $
2020

Sales Journal (Sales day book)

Date Details $
2020

Purchase returns Journal (returns outwards day book)

Date Details $
2020

Sales returns Journal (returns inwards day book)

Date Details $
2020

Page 10
 ALWADI INTERNATIONAL SCHOOL ACCOUNTING GRADE 10

Purchase Ledger
M Stanhope
$ $

T Fox
$ $

Sales Ledger
J Forbes
$ $

K Lesley
$ $

Nominal ledger
Purchases account
2020 $ 2020 $

Sales account
2020 $ 2020 $

Purchases returns account

2020 $ 2020 $

Sales returns account

2020 $ 2020 $

Page 11