Page 373 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Answers to questions

Example 3

ABC had the following transactions during the first week of July 20X2:

1 Jul Bought goods on credit from JB cost $1000
Sold goods on credit to JSA for $800
2 Jul Sold goods on credit to PB for $80
Returned goods to JB because they were faulty $80
3 Jul Bought goods on credit from AL cost $600
4 Jul JSA returned unwanted goods $200
5 Jul Returned goods to AL $120
6 Jul Sold goods on credit to CAL for $400
7 Jul CAL returned goods as unsuitable $120
Sold goods on credit to BC for $240

Required:

Prepare the day books to record these transactions (You can ignore the
memorandum accounts).

Example 3: Solution

Purchases day book

Personal Net Sales Tax Gross
Date Doc. no details $ $ $
1 Jul 001 JB 1,000 1,000
3 Jul 002 AL 600 600
——— ——— ———

1,600 1,600
——— ——— ———

367