Books of Original Entry
Purchases Book Purchases Day Book Date Particulars Amounts Jul 1 6 10 18 30 31 X Co Y Co Z Co X Co (Less 10% trade discount) Total purchases account $ 165 22 225 60 482 Purchases Day Book
Posting the Purchases Book 1) Individual purchases amounts in the purchases book are posted to the credit side of the respective creditors’ personal accounts in the purchases ledger 2) Total purchases is posted to the debit side of the purchases account in the general ledger
Purchases Ledger X Co $ Jul 1 Purchases 165 18 Purchases 225 Y Co $ Jul 6 Purchases 22
Z Co $ Jul 10 Purchases 10 30 Purchases 60 General Ledger Purchases $ Jul 31 Total Credit Purchases for the month 482
Sales Book Sales Day Book Date Particulars Amounts Aug 2 10 15 18 31 A Co B Co Total sales account $ 200 550 1,215 500 2,465 Sales Day Book
Sales Ledger A Co $ Aug 2 Sales 200 15 Sales 1,215 B Co $ Aug 10 Sales 550 28 Sales 500
General Ledger Sales $ Aug 31 Total Credit Sales for the month 2,465
Returns Inwards and Outwards Books Date Particulars Amounts Aug 10 15 31 X Co Z Co Total returns outwards account $ 5 Returns Outwards Book
Returns Inwards Book Date Particulars Amounts Aug 19 25 31 A Co Total returns inwards account $ 20 95 115 Returns Inwards Book
Purchases Ledger X Co $ Jul 1 Purchases 165 18 Purchases 225 Aug 10 Returns outwards 10 Z Co $ Jul 1 Purchases 20 18 Purchases 60 Aug 10 Returns outwards 5
Sales Ledger A Co $ Aug 2 Sales 200 15 Sales 1,215 Aug 19 Returns inwards 20 25 Returns inwards 95
Returns Outwards $ Aug 31 Total returns outwards for the month 15 Returns Inwards $ Jul 31 Total returns inwards for the month 115
Cash Book Date Receipts Cash Bank Payments Apr 1 3 8 18 20 30 Bal b/f Discount Cash Bank Payments Apr 1 3 8 18 20 30 Bal b/f Mr. Wong Sales Mr. Cheung $ 150 (20) 1,500 5,000 5,850 980 5,500 12 22 29 Mr. Ho Mr. Lo Salaries Bal c/d 60 1,000 6,500 12,330 Bal b/d 2,355 Cash Book Bank $ 4,000 2,250 985 1,940 800 2,355 May 1 12,330
Example Record the following transactions in a three-column cash book Apr 1 Balance b/f: cash $1,500, bank overdraft $4,000. 3 Received from Mr. Wong a cheque being in full settlement of his debt of $6,000; less 2.5% cash discount. 8 Cash sales $5,000 12 Paid to Mr. Ho a cheque for goods purchased in the previous month amounting to $3,000; less 25% trade discount. 18 Received a cheque from Mr. Cheung for goods sold at $1,000 deducting 2% cash discount. 20 The cheque received from Mr. Cheung was returned by the bank as ‘unpaid’ with charges of $5 22 Paid by cheque the amount due to Mr. Lo for the debt of $2,000 being allowed 3% cash discount. 29 Paid salaries by cheque $800 30 Banked all the cash except for $1,000
Petty Cash Book Receipts Date Particulars Payments Stationery Wages Postage Ledger $ 51.70 348.30 Apr 1 6 7 14 16 21 23 27 Bal b/f Cash Notepaper Stamps Mr. Tong Envelopes 32.80 91.40 37.50 53.60 92.80 43.70 21.00 372.80 76.50 184.20 58.50 Bal c/d 30 27.20 400.00 Bal b/d May 2
Example Mr. Yip is a sole trader who keeps his petty cash on the imprest system – the imprest amount being $400. The petty cash transactions for the month of April are as follows: Apr 1 Petty cash in hand $51.70. 1 Petty cash restore to the imprest amount. 6 Bought notepaper for $32.80. 7 Paid wages $91.40. 14 Bought postage stamps for $37.50. 16 Paid to Mr. Tong, a creditor, $53.60. 21 Paid wages $92.80. 23 Bought envelopes for $43.70. 27 Bought postage stamps for $21.00 Required: Draw up the petty cash book for the month of April, recording the above transactions. You should also give the entry on 2 May, restoring the petty cash to the imprest amount.