Books of Original Entry

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Books of Original Entry
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Purchases Book
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Posting the Purchases Book

• 1) Individual purchases amounts in the purchases
  book are posted to the credit side of the
  respective creditors personal accounts in the
  purchases ledger
• 2) Total purchases is posted to the debit side of
  the purchases account in the general ledger

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Purchases Ledger
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General Ledger
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Sales Book
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Sales Ledger
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General Ledger
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Returns Inwards and Outwards Books
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(No Transcript)
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Purchases Ledger
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Sales Ledger
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Returns Inwards

Jul 31 Total returns inwards
for the month 115
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Cash Book
Bank
4,000 2,250 985 1,940 800 2,355
12,330
May 1
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Example

• Record the following transactions in a
  three-column cash book

Apr 1 Balance b/f cash 1,500, bank overdraft
4,000. 3 Received from Mr. Wong a cheque
being in full settlement of his debt of
6,000 less 2.5 cash discount. 8 Cash
sales 5,000 12 Paid to Mr. Ho a cheque for
goods purchased in the previous month amounting
to 3,000 less 25 trade discount. 18
Received a cheque from Mr. Cheung for goods sold
at 1,000 deducting 2 cash discount. 20
The cheque received from Mr. Cheung was returned
by the bank as unpaid with charges of 5
22 Paid by cheque the amount due to Mr. Lo for
the debt of 2,000 being allowed 3 cash
discount. 29 Paid salaries by cheque 800
30 Banked all the cash except for 1,000
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Petty Cash Book
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Example
Mr. Yip is a sole trader who keeps his petty cash
on the imprest system the imprest amount being
400. The petty cash transactions for the month
of April are as follows Apr 1 Petty cash in
hand 51.70. 1 Petty cash restore to the
imprest amount. 6 Bought notepaper for
32.80. 7 Paid wages 91.40. 14
Bought postage stamps for 37.50. 16 Paid
to Mr. Tong, a creditor, 53.60. 21 Paid
wages 92.80. 23 Bought envelopes for
43.70. 27 Bought postage stamps for
21.00 Required Draw up the petty cash book for
the month of April, recording the above
transactions. You should also give the entry on 2
May, restoring the petty cash to the imprest
amount.