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BA 100 BUSINESS ACCOUNTING

TUTORIAL 7: BOOKS OF PRIME ENTRY

1. Describe the contents, and state which documents are used to write up each of the following:
a. The sales day book
b. The purchases day book
c. The sales returns day book
d. The purchases returns day book
2. Brown buys and sells soft furnishings and office equipment. During August 2008 he had the
following credit transactions:

1 Aug Bought goods on credit from Desks Trading which had retail price of RM 1,500 and trade
discount on 25 per cent
3 Aug Purchased goods with retail price of RM 1,000 from Chairs Enterprise who allowed 30
per cent trade discount
6 Aug Sold goods on credit to British Cars for RM 1,200 less 10 per cent trade discount
10 Aug Received a credit note from Desks Trading in respect of goods returned which had a
retail price of RM 800 and trade discount of 25 per cent
13 Aug Sold goods to London Beds Trading on credit. These had a retail value of RM 1,300 and
trade discount of 15 per cent
16 Aug Sent British Cars a credit note in respect of goods returned that were invoiced at a retail
price of RM 800 less 10 per cent trade discount
18 Aug Purchased goods on credit from Cabinets Enterprise that had a retail value of RM 1,400
and trade discount of 20 per cent
21 Aug Received a credit note from Chairs Enterprise for goods returned that had a retail price of
RM 700 and 30 per cent trade discount
23 Aug Sold goods on credit to English Carpet for RM 1,800 less 10 per cent trade discount
25 Aug Sent London Beds Trading a credit note relating to an overcharge of RM600 in the retail
value of those goods delivered on 13 August which carried trade discount of 15 per cent

You are required to make the necessary entries in the books of prime entry and the ledger.
3. Show the journal entries to record the following items:

2016
Apr 1 Bought furniture on credit from Bell & Co. RM1,153.
Apr 4 Took goods costing RM340 out of the business inventory without paying.
Apr 9 RM68 of the goods taken on 4 April was returned back into the inventory. No repayment was
made for the return of goods.
Apr 12 Cowes owed us RM640 and he was unable to pay his debt. Thus, we agreed to take some
computer equipment from him at the value of the amount owing in order to cancel the debt.
Apr 18 Some of the furniture bought from Bell & Co. RM42 worth, were found to be damaged and
were returned to her for full refund.
Apr 24 A debt owing to us by Lees of RM124 is written off as a bad debt.
Apr 30 Office equipment bought on credit from Furniture Today Ltd. for RM 1,710.