Page 157 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

The books of prime entry, discounts and sales tax

The double-entry to the nominal ledger for the total from the purchases day book
(excluding tax) would be as follows:

Debit Purchases $8,615

Debit Sales tax $1,625
Credit Payables $10,240

As well as the double-entry to the nominal ledger as above, each of the individual
purchases would also be recorded within the purchase ledger, to each suppliers
individual memorandum account.

Credit Harry $3,240
Credit Ron $145

Credit Hermione $5,610
Credit Neville $900

Credit Draco $345

Note that as the memorandum accounts are not part of the nominal ledger the
double-entry concept does not apply, and as such, there is no opposing debit entry
required within the purchase ledger.

151