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BOOK OF PRIME ENTRY
JOURNALS
Journal is French word meaning “Daily Record”.
It is used to record transactions at first before the businessman forget the exact details to post into respective ledger.
It is used to record transactions at first before the businessman forget the exact details to post into respective ledger.
Journal sometimes maybe called Books of prime entry or subsidiary books or books of original entry where entries are made prior to their posting to the respective ledger.
TYPES OF JOURNAL
Types of books of prime entry are as follows;
Types of books of prime entry are as follows;
(i) Purchases journal/Day book.
(ii) Purchases return journal.
(iii) Sales Journal.
(iv) Sales return journal.
(v) Cash Book.
(v) Cash Book.
(vi) Journal proper.
Types of ledger:
There are main three kinds/types of ledger where entries/transactions are posted from the books of prime entries such as;
(a) Purchases ledger.
(b) Sales ledger.
(c) General ledger.
PURCHASES JOURNAL
Types of ledger:
There are main three kinds/types of ledger where entries/transactions are posted from the books of prime entries such as;
(a) Purchases ledger.
(b) Sales ledger.
(c) General ledger.
PURCHASES JOURNAL
Is the book which used to record daily purchases on credit only before posted to the ledger.
When goods are purchased on credit, the seller will send an invoice to the buyer.
Invoice: Is the document issued by the seller contain all informations concerned to the goods purchased/sold.
The individual entries in the purchase day book are immediately posted to the credit of the supplies or creditors account in the bought ledgers while the total of the purchased journal is posted to debit of the purchases account in the general ledger usually on last day of the month.
When goods are purchased on credit, the seller will send an invoice to the buyer.
Invoice: Is the document issued by the seller contain all informations concerned to the goods purchased/sold.
The individual entries in the purchase day book are immediately posted to the credit of the supplies or creditors account in the bought ledgers while the total of the purchased journal is posted to debit of the purchases account in the general ledger usually on last day of the month.
PURCHASES JOURNAL
DATE | PARTICULAR | F | INVOICE DETAIL | INVOICE TOTAL |
EXAMPLE
Record the following business transaction in the purchases journal.
1st July bought on credit from Ketena Ltd
20 bags of sugar each 15,000
15 bags of wheat flour each 8,000
10th July brought credit from Salehe
20 dozen exercise books each 1,600
2 cartons of duplicating paper 24,000
14th July bought goods on credit from Jengua worth 27,000
25th July bought on credit from Kiharusi
10 pairs of shoes each 12,000
14 boxes of shoes polish 7,000
Solution
Solution
PURCHASES JOURNAL
DATE | PARTICULARS | F | INVOICE DETAILS | INVOICE TOTAL |
1st July 10th July 14th July 25th July 31st July | KATEME LTD 20 bags of sugar @ 15,000 15 bags of wheat flour @ 8,000 SALEHE 12 dozen of exercise book @ 1,600 2 cartons of duplicating paper @ 24,000 JENGUA Goods KIHARUSI 10 pairs of shoes each @12,000 14 boxes shoes polish @ 7,000 Transferred to purchases A/C Dr. in the general ledger. | 300,000 120,000 19,200 48,000 120,000 98,000 | 420,000 67,200 27,000 218,000 732,200 |
EXERCISE 1
Record the following business transaction in a purchases journal. Show the total credit purchases at the end of the month.
1st April bought on credit from WAZO HILI LTD.
50 bags of cement each 7,000
25 sheets of asbestos each 4,600
11th April bought from Aluminium African Ltd.
250 coecoqetid icon sheet each 2,500
160 icon beans each 1,800
20th April bought from YEMEN ENTERPRISES goods worth 189,000
24th April bought on credit from KANUTI goods worth 320,000
30th April bought on credit from MNANDI
50 copies of civics books each 1,400
20 dozen of writing pad each 150
EXERCISE 2
Enter the following transaction in MLA WATU purchases day book and post to the ledger.
1st Nov bought from Shah Stores
5 dining tables with chair @ Tshs. 600
5 side table @ Tshs. 300
5th Nov purchases from Mzigo store
100 pairs of kanga @ Tshs.107
50 pairs of Vitenge @ Tshs. 107
10th Nov bought from wajamaa traders
10 bags of white sugar @ Tshs 575
25 bags of yellow beans @ Tshs 600
15th Nov bought from Lipangila traders
30 beds @ Tshs 450.
40 spring mattresses @ Tshs. 500
20th Nov bought from Kuleana traders
3 boxes of juice flavour @ Tshs.640
6 boxes of straw @ Tshs.190
40 boxes of glasses @ Tshs.1600
Solution.QN2
Solution.QN2
MLAWATU’S
PURCHASES DAY BOOK
PURCHASES DAY BOOK
DATE | PARTICULARS | F | INVOICE DETAILS | INVOICE TOTAL |
1st Nov 5th Nov 10th Nov 15th Nov 20th Nov 31st Nov | SHAH STORE – 5 dining tables with chair @ 600 – 5 side table at shs. @ 300 MZIGO STORES – 100 pairs of kanga at shs. @107 – 50 pairs of Vitenge at shs @ 107 WAJAMAA TRADERS – 10 bags of white sugar ata shs @ 575 – 25 bags of yellow beans of shs @600 LIPANGIRA TRADERS – 30 beds at shs@ 450 – 40 spring mattresses at shs. @500 KULEANA TRADERS – 3 boxes of juice flavour @ 640 – 6 boxes of straw @ 190 – 40 boxes of glasses of shs. @1,600 Transferred to purchases A/C Dr. in the General ledger | 4500 16050 20750 33500 67060 141860 |
PURCHASES LEDGERS
DR SHAH STORES A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
1stNov | Purchases | 4,500 | |||||
DR MZIGO STORES A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
5thNov | Purchases | 16,050 | |||||
DR WAJAMAA TRADERS A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
10thNov | Purchases | 20750 | |||||
DR LIPANGILA TRADERS A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
15thNov | Purchases | 33,500 | |||||
DR KULEANA TRADERS A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
20thNov | Purchases | 67,060 | |||||
EXERCISE.3
Enter the following business transaction in the purchases journal of Kasime then post to the ledger accounts.
7th Sept bought from KITUNGUU
6 dozen of shoes each 2100
10 dozen of socks each 500
18th Sept bought goods on credit from KANYAMA TRADERS worth 6000
28th Sept bought on credit from BABAJE TRADERS
10 dozen of mathematical set each 3000
36 mathematics books each 2000
EXERCISE 4
Kabila enterprises made the following purchases during the month of January 2000.
1st Jan bought from Kilombero
100 bags of sugar 50kg of tshs. 8,000 each
50 bags of sugar 25kg of Tshs. 4000 each
5th Jan bought from Matatu shop
100 boxes of cooking fat @ Tshs 650
20 boxes of cooking fat @ Tshs 700
10th Jan bought from Moshi traders
100 pairs of raincoat at 120 each
60 pairs of rain boot of 430 each
15th Jan bought from Mombasa Stores
99 bags of salt 100kg at 450 each
25 bags of maize flour 10kg at 550 each
20th Jan purchases from Vijana enterprises
69 bags of sulphate ammonium 50kg at 850 each
102 bags of urea 10kg at 102 each
25th Jan bought from Bahari beach Hotel
25 used record player of 1500 each
50 used television of 6,000 each
Enter the above transaction to Kabila purchases day book and open the respective ledgers as well as General ledger.
Solution.QN3
KASIME’S
Solution.QN3
KASIME’S
PURCHASES JOURNAL
DATE | Particulars | F | Invoice details | Invoice Total |
7th Sept 18th Sept 28th Sept 30th Sept | KITUNGUU – 6 dozen of shoes @ 2100 – 10 dozen of socks @ 500 KANYAMA TRADERS – Goods BABAJE TRADERS – 10 dozen of mathematical set @ 3,000 – 36 mathematics books @ 2,000 Transferred to purchases a/c Dr. General ledger | 12,600 5,000 30,000 72,000 | 17,600 6,000 102,000 125,600 |
PURCHASES LEDGER
DR KITUNGUU A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
7th Sept | Purchases | 17600 | |||||
DR KINYAMA TRADERS A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
18th Sept | Purchases | 6000 | |||||
DR BABAJE TRADERS A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
28th Sept | Purchases | 102000 | |||||
Solution.QN4
KABILA’S
KABILA’S
PURCHASES JOURNAL
DATE | PARTICULARS | F | INVOICE DETAILS | INVOICE TOTAL |
1st Jan 5th Jan 10th Jan 15th Jan 20th Jan 25th Jan 31thJan | KILOMBERO – 100 bags of sugar 50kg of tshs. @ 8,000 – 50 bags of sugar 25kg of Tshs. @ 4000 MATATU SHOPS – 100 boxes of cooking fat @ 650 – 20 boxes of cooking fat @ 700 MOSHI TRADER – 100 pairs of raincoat at @ 120 – 60 pairs of rain boot of @ 430 MOMBASA STORES – 99 bags of salt 100kg at @ 450 – 25 bags of maize flour 10kg at @ 550 VIJANA ENTERPRICES – 69 bags of sulphate ammonium 50kg at @ 850 – 102 bags of urea 10kg at @102 BAHARI BEACH HOTEL – 25 used record played of @ 1500 – 50 used television of @ 6,000 Transferred to purchases A/C Dr in the general ledger | 800,000 20,000 65,000 14,000 12,000 25,800 44,550 13,750 58,650 10,404 37,500 300,000 | 820,000 79,000 37,800 58,300 69,054 337,500 1,401,654 |
PURCHASES LEDGERS
DR KILOMBERO A/C CR
DR KILOMBERO A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
1st Jan | Purchases | 820,000 | |||||
DR MATATU SHOP A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
5th Jan | Purchases | 79,000 | |||||
DR MOSHI A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
10th Jan | Purchases | 37,800 | |||||
DR
MOMBASA STORES A/C CR
MOMBASA STORES A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
15th Jan | Purchases | 58,300 | |||||
DR VIJANA ENTERPRISES A/C CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
20th Jan | Purchases | 69,054 | |||||
DR BAHARI BEACH HOTEL A/C
CR
CR
DATE | DETAILS | F | AMOUNT | DATE | DETAILS | F | AMOUNT |
25th Jan | Purchases | 337,500 | |||||
SALES DAY BOOK
When a sale taken place on credit, th
e seller send an invoice to the buyer. The invoice is made out in duplicate and the sellers retains a copy – This copy is the source document from which a sales journal is written up.
e seller send an invoice to the buyer. The invoice is made out in duplicate and the sellers retains a copy – This copy is the source document from which a sales journal is written up.
