Cambrige Notes: Purchases Journal and Purchases Ledger example

Purchases Day Book example. Image credit Frank Wood’s Business Accounting 1.

• J Dzungu has the following purchases for the month of May 2015:
• May 1 From D Muti: 4 DVDs at $60 each, 3 mini hi-fi units at $240 each. Less 25 per cent trade
  discount.
• 3 From F Rugare: 2 washing machines at $280 each, 5 vacuum cleaners at $80 each, 2 dishwashers
  at $200 each. Less 20 per cent trade discount.
• 15 From B Sakarombe: 1 hi-fi unit at $600, 2 washing machines at $320 each. Less 25 per cent
  trade discount.
• 20 From J Dube: 6 CD/radios at $45 each. Less 331/3 per cent trade discount.
• 30 From R Feruka: 4 dishwashers at $240 each. Less 20 per cent trade discount.
  Required:
  (a) Enter up the purchases day book for the month.
  (b) Post the transactions to the suppliers’ accounts.
  (c) Transfer the total to the purchases account.

Solution
First you need to deduct trade discount as it is not part of the double entry system.

To access more topics go to the Principles of Accounts Notes page.