1. Journal
and
Ledger DR CR

2. Format of Journal Date Particulars L/F Debit Amount Credit
Transaction date
Name of Account to be Debited Dr
Name of Account to be Credited Cr
(Narration )
Activity #17-20

3. a) Purchased goods at $6000 on credit
from ABC Ltd on 26 November 2000.
Debit
Credit
Date
Particulars $
Journal Entry
2000
Nov 26
6000
Purchases DR
6000
Creditors-ABC CR
(Purchases on Credit worth $6000 from ABC Ltd.)

4. b) Sold goods at $9000 on credit to PCK Ltd on 8 July 2000.
Debit
Credit
Date
Particulars $
Journal Entry
2000
July 8
9000
Debtors-PCK DR
9000
Sales CR
(Sales on credit worth $9000 to PCK Ltd.)

5. c) The firm incurred the following expenses: 19 March - Rent $2000
8 May - Wages $10,000
Journal Entry
Debit
Credit
Date
Particulars $
2000
Mar 19
2000
Rent expense DR
2000
Cash CR
(Rent paid of $2,000.)
10000
May 8
Wage expense DR
10000
Cash
(Wages paid of $10,000.)

6. d) The firm received the following revenues: 27 March - Rent $3000
19 June - Interest $500
Journal Entry
Debit
Credit
Date
Particulars $
2000
Mar 27
3000
Cash DR
3000
Rent received CR
(Received rent of $3,000.)
500
June 19
Cash DR
500
Interest revenue CR
(Record interest revenue of $500.)

7. e) The firm returned some damaged goods to supplier (ABC) worth $2000 on 10 July.
Journal Entry
Debit
Credit
Date
Particulars $
2000
July 10
2000
Creditors-ABC DR
2000
Returns Outwards CR
(Record returns outwards of $2,000.)

8. f) A customer, XYZ returned some damaged goods to the firm worth $1500 on 8 August.
Journal Entry
Debit
Credit
Date
Particulars $
2000
Aug 8
1500
Returns Inwards DR
1500
Debtors-XYZ CR
(Goods returns inwards of $1,500.)

9. It is common for the owner to draw money or goods from the firm for personal use anytime.
According to the Accounting Entity Concept, we must record the event even though he is the owner of the firm.
What do you call this?
Click me!
Drawings

10. The owner withdrew goods worth $2000 for his personal use on 10 April 2000.
Debit
Credit
Date
Particulars $
Journal Entry
2000
April 10
2000
Drawings DR
2000
Purchases CR
(Drawings of goods worth $2000 for personal use )

11. h) Discount Allowed to customer XYZ $50 on 1st September 2000
Journal Entry
Debit
Credit
Date
Particulars $
2000
Sept. 1
Discount Allowed Dr 50 50
Debtor- XYZ Cr
(Discount allowed to customer)

12. i) Discount received from supplier ABC $20 on 1st July 2000
Journal Entry
Debit
Credit
Date
Particulars $
2000
July. 1
Creditor- ABC Dr 20
Discount Received Cr 20
(Discount received from creditor)

13. j) Depreciation charged on furniture $ 45 on 30th. September 2000
Journal Entry
Debit
Credit
Date
Particulars $
2000
Sept. 30
Depreciation Dr 45
Furniture Cr 45
(Depreciation charged on furniture)

14. Journal General Journal Subsidiary Books
Record general transactions only: other than Purchase /Sales of goods, Returns Inward/outward, Cash/Bank
General Transactions include: Assets purchase or sale on credit, adjustments for :Discounts, Depreciation, Rectifications of errors, accruals etc.
It is in Journal format only
Record specific transactions in specific subsidiary Book
Sales Day Book
Purchase Day Book
Sales Return Day Book
Purchase Return Day Book
Cash Book
Bank Book
Each Subsidiary Book has different format

15. Formats of Subsidiary Books
Format of Purchase Book (Day Book)
Date
Suppliers Name
Invoice No.
L/f.
Gross Amount
Total
Activity# 15 pg
Format of Sales Book (Day Book)
Date
Customers Name
Invoice No.
L/f.
Gross Amount
Total
Activity# 14 pg

17. Formats of Subsidiary Books
Format of Purchase Return Book (Day Book)
Date
Suppliers Name
Debit Note No.
L/f.
Gross Amount
Total
Activity# 16 pg
Format of Sales Return Book (Day Book)
Date
Customers Name
Credit Note No
L/f.
Gross Amount
Total
Activity# 16 pg

18. Pg. 178 of Text Book

19. Purchase Day Book Date Supplier’s Name Invoice No Folio £
Gross Amount
Folio
20X7
May
F. Bean
324
May
A. Clerk
216
B. Lock
322 64
F. Turner
130
G. Grill
140
May
B. Lock
230
May
J. Top
310
I. Grey
405
F. Low
180
P. Able
174
May
F. Turner
230
T. Burns
Total transferred to Purchase Account
2725

20. Return Outward Day Book
Debit Note No
Date
Folio
Gross Amount
Supplier’s Name
20X7
May
F. Bean 56 28
May 25
A. Clerk
140
I. Grey 34
B. Lock
Total transferred to Return Outward Account
258

21. Sales Day Book Date Customer’s Name Invoice No Folio £
Gross Amount
20X8
June
B. Dock
240
M. Ryan
126
G. Soul 94
F. Trip
107
June
P. Coats
182
L. Job
203 99
T. Mann
June
B. Uphill
1,790
302
June 30
T. Kane
Total transferred to Sales Account
3,143
Pg. 178 R. Question #16.2A

22. Return Inward Day Book Credit Note No Date Customer’s Name Folio £
Gross Amount
Customer’s Name
Folio
20X8
June
B. Dock 19 32
F. Trip
June
L. Job 16
Total transferred to Return Inward Account 67
Pg. #178 R. Question #16.2A

23. Cash Book (Single Column)
Dr Cash book Cr
Date
Receipts Details
Folio
Amount
Payments Details
Activity #22-26

24. Cash Book (Double Column)
Dr Cash book Cr
Date
Receipts Details
Folio
Cash
Bank
Payments Details
Activity #13.5 pg
Review Questions pg. 150 (13.1 &13.2)

26. Cash Book Dr Cr C C C C £ £ £ £ Capital Rent 135 M. Boon 315Dr Cr
Date
Receipts Details
Cash
Bank
Payments Details
Cash
Bank
Folio
Date
Folio
20X8
20X8
Capital
10,940
Sept
Rent
Sept
135
Sept
M. Boon
315
Sept
Cash Sales
802
Cash C 50
Bank C 50
Sept
Sept
Cash Sales
S. Wills
Sept
490
Sept
277
Cash
Bank C
Sept C
120
120
Sept
Wages
Sept
518
Balance C/d
Sept
219
11,398
Total
922
11,795
Total
922
11,795
Oct
Balance C/d
219
11,398

28. III CLASSIFYING Classifying Business Transactions :
Postings in Ledger from the Books of prime entries:
All Transactions which are recorded in the Books of Primary Entries in chronological order are then classified in different Accounts in a Book called Ledger which is a Book of Secondary Entry
The transactions are posted (transferred) from Books of Prime Entries to Book of Secondary Entry –Ledger.
Each transaction is posted in the respective accounts opened in the Ledger.

29. Balancing of Ledger:
Find out balance in the ledger Account after posting all the transactions in the ledger accounts.
Balancing can be done yearly/half yearly/ quarterly/ monthly/ weekly/ daily and now with computerization on every transaction posted in ledger.

30. Format of Ledger Account
Dr Cr
Date
Particulars F.
Amount
Activity#5.1 and 5.2 page #55-56

31. G. Flynn Dr Cr _________________________A/C £ Activity#5.1 page #55
Date
Particulars F.
Amount
20X6
20X6
May 1
Sales
810
May 10
Return Inward 93
May 4
Sales
134
May 24
Cash
500
May 31
Balance C/d
341
Total
944
Total
944
June 1
Balance B/d
Activity#5.1 page #55

32. B. Goh Dr Cr _________________________A/C £ Activity#5.1 page #55 Date
Particulars F.
Amount
20X6
20X6
May 1
Sales
763
May 18
Bank
763
Total
763
Total
763
Activity#5.1 page #55

33. T. Fey Dr Cr _________________________A/C £ Activity#5.1 page #55 Date
Particulars F.
Amount
20X6
20X6
May 1
Sales
392
May 10
Return Inward 41
May 20
Bank
351
Total
392
Total
392
Activity#5.1 page #55

34. F. Start Dr Cr _________________________A/C £ Activity#5.1 page #55
Date
Particulars F.
Amount
20X6
20X6
May 4
Sales
480
May 31
Balance C/d
720
May 31
Sales
240
Total
720
Total
720
June
Balance B/d
720
Activity#5.1 page #55

35. Sales Dr Cr _________________________A/C £ Activity#5.1 page #55 Date
Particulars F.
Amount
20X6
20X6
May 1
1965
Debtors
914
May 4
Debtors
May 31
Debtors
240
May 31
Balance C/d
3119
Total
3119
3119
Total
June
Balance B/d
3119
Activity#5.1 page #55

36. Return Inward Dr Cr _________________________A/C £
Date
Particulars F.
Amount
20X6
20X6
May 10
Debtors
134
May 31
Balance C/d
134
Total
134
134
Total
June
Balance B/d
134
Activity#5.1 page #55

37. Purchase Dr Cr _________________________A/C £ Activity# 5.2 page #56
Date
Particulars F.
Amount
20X8
20X6
June 1
Creditors
1440
June 30
Balance C/d
3570
June 3
Creditors
1920
June 15
Creditors
210
Total
3570
Total
3570
July 1
Balance B/d
3570
Activity# 5.2 page #56

38. J.Saville Dr Cr _________________________A/C £ Activity# 5.2 page #56
Date
Particulars F.
Amount
20X8
20X6
June 3
Return Outward 65
June 1
Purchase
240
June 28
Cash
300
June 15
Purchase
210
June 30
Balance C/d 85
Total
450
Total
450
July 1
Balance B/d 85
Activity# 5.2 page #56

39. P.Todd Dr Cr _________________________A/C £ Activity# 5.2 page #56
Date
Particulars F.
Amount
20X8
20X6
June 30
Return Outward 39
June 1
Purchase
390
June 30
Balance C/d
821
June 15
Purchase
470
Total
860
Total
860
July 1
Balance B/d
821
Activity# 5.2 page #56

40. J.Fray Dr Cr _________________________A/C £ Activity# 5.2 page #56
Date
Particulars F.
Amount
20X8
20X6
June 10
June 1
Purchase
810
Return Outward 82
June 30
Balance C/d
728
Total
810
Total
810
July 1
Balance B/d
728
Activity# 5.2 page #56

41. J.Mehan Dr Cr _________________________A/C £ Activity# 5.2 page #56
Date
Particulars F.
Amount
20X8
20X6
June 19
1450
Bank
1450
June 3
Purchase
Total
1450
Total
1450
Activity# 5.2 page #56

42. Returned Outward Dr Cr _________________________A/C £
Date
Particulars F.
Amount
20X8
20X6
June 30
147
Balance C/d
186
June 10
Creditors
June 10
Creditors 39
Total
186
Total
186
July 1
Balance B/d
186
Activity# 5.2 page #56

43. Format of Ledger Account (Three Columns)
Sales
Date
Particulars F.
Debit
Amount
Credit
Balance
Activity#5.1 and 5.2 page #55-56