PROBLEMS ON BOOKS OF PRIME ENTRY AND LEDGERS

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Problem 01: Enter the following transaction in the general journal for the month of May 2007.

May 01: Johnson started business with $10,000 in the bank.

02: purchased goods $290 on credit from D James.
03: bought furniture for $1,150 paying by cheque.
04: withdrew cash $500 from bank for using in business.
05: sold goods for cash $140.
06: bought goods on credit $325 from C Monty.
10: paid rent by cash $200.
12: bought stationary $45 paying in cash.
18: goods returned to D James $41.
21: received rent of $100 by cheque for sublet of corner space.
23: sold goods on credit to G Cross for $845.
24: bought a Van paying by cheque $4,100.
25: deposited into bank, the cheque received on May 21.
30: paid the month’s wages by cash $360.
31: proprietor took cash for his own personal use $80.

Problem 02: Enter the following transactions in the general journal of P Hewitt for March 2008.
March 01: started in business with cash $8,500.
02: bought goods on credit from W Young $420.
03: paid rent by cash $210.
04: paid $6,000 of the cash into a business bank account.
05: sold goods on credit to D Unbar of $192.
07: bought stationary $25 paying by cheque.
11: cash sales $81.
14: goods returned by us to W Young $54.
17: sold goods on credit to J Harper $212.
20: paid for repairs to the building by cash $78.
22: D Unbar returned goods to us $22.
27: paid W Young by cheque $366.
28: cash purchases $470.
29: bought a Van paying by cheque $3,850.
30: paid Motor expenses in cash $62.
31: bought furniture $840 on credit from B Coal.

Problem 03: Write up the following transactions in the T-accounts of F Fernandes for February 2009.
Feb 01: started in business with $11,000 in the bank and $1,600 cash.
02: bought goods on credit from: J Biggs $1,440, D Martin $610
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03: bought goods for cash $370.
05: paid rent in cash $75.
06: sold goods on credit to B Hogan $660.
08: paid wages in cash $160.
10: we returned goods to J Biggs $195.
13: B Hogan returns goods to us $60.
15: sold goods on credit to: T Lee $400, G Rae $480.
18: paid insurance in cash $280.
19: paid rent by cheque $75.
20: bought Machinery on credit from B Black $6,100.
22: paid motor expenses in cash $45.
23: received part of the payment $100 from T Lee.
28: paid D Martin by cheque $610.

Problem 04: You are to enter up the following transactions of a printing company in the ledgers for
the month of May 2006 and balance off the accounts.
May 01: started in business with capital in cash of $800 and $2,200 in the bank.
02: bought goods on credit from the following persons: J Ward $610; P Green $214; M Taylor $174.
04: sold goods on credit to: J Sharpe $340; G Boycott $720.
05: bought goods from: P Green $550 and P Tone $540.
06: paid rent by cash $180.
09: J Sharpe paid us his account by cheque $340.
12: we paid the following by cheque: J Ward $610 and M Taylor $174.
15: paid transportation-in by cash $38
18: bought goods on credit from: P Green $295 and M Taylor $940.
22: sold goods on credit to G Boycott $810.
31: paid salaries by cheque $230.

Problem 05: From the following transactions prepare sales journal and purchase journal of P George
& Co. Also prepare the sales ledger and purchase ledger and Schedule of Debtors and Creditors.
2009
June 01: sales on credit to B Flyn $810; G Goh $765 and T Fey $392.
04: sales on credit to F Start $480 and B Flyn $134
10: purchased goods on credit from: P Todd $390 and J Fry $810.
11: return inwards (sales) from B Flyn $93.
14: G Goh paid us by cheque $765.
15: we returned goods to J Fry $82.
16: bought goods on credit from: P Todd $470 and J Mehan $1,450.
17: T Fay paid us $250 by cheque.
18: purchased goods on credit from G Boss $450.
22: B Flyn paid us $500 by cash.

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23: sales on credit to F Start $240.
26: paid to J Mehan by cash $300.
29: returned goods to P Todd $39.

Problem 06: Enter the following transactions in sales day book (sales journal) for March 2008.
March 01: sold goods to: F Gray $620; I Hood $450 and S Bell $780 after 25% trade discount offer.
04: goods sold on credit to: A Gray $550; J Smart $230 and K Byers $480, after the deductions of 20%
trade discount.
08: sold goods to E Hines $950. Trade discount of 20% is offered.
10: goods returned from: S Bell $45 and K Byers $30.
20: sold goods on credit to: M Allen $680 and I Hood $420.
30: sold goods on credit to: F Lock $1,040 after 10% trade discount.

Problem 07: Enter the following transactions of A Jack in purchases day book (purchases journal) for
the month of May 2007.
May 01: purchased goods on credit from D Pope $560 less 10% trade discount.
04: goods purchased from: F Lloyd $900; C Kelly $850 and A Henry $460 after the deductions 20%
trade discount.
07: purchased goods on credit from: G Smith $1,250 and D Pope $765 less 12.5% trade discount.
10: goods returned to C Kelly $28.
15: bought goods on credit from B Sankey $950 less 25% trade discount.
18: goods returned to D Pope $60.
27: purchased goods on credit from F Lloyd $620 and J Wilson $560. Deducted 20% trade discount.

Problem 08: Following are the transactions of KK Company for the month of August 2009.
Aug 01: credit purchases from F Bean $324.
04: credit purchases from the following: A Clerk $216; B Lock $322 and G Rill $130.
07: sold goods on credit to: B Dock $240; M Ryan $126 and G Soul $107.
09: goods returned to: F Bean $56 and A Clerk $28.
12: credit sales to: P Coates $182; L Job $203 and T Mann $100.
13: goods returned to us by: B Dock $19 and G Soul $12.
16: goods purchased from B Lock $140.
20: sold goods on credit to B Uphill$1,790.
21: goods returned to us by L Job $16.
23: purchased goods on credit from: G Rill 180; I Gray $310 and A Clerk $140.
24: credit sales to T Kane $302.
26: goods returned by us to I Gray $40.
Required:
a. Prepare Sales journal and Purchases journal.
b. Prepare sales return and purchases return journal.
c. Prepare Purchases ledger and sales ledger. And schedules of debtors and credit

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 CASH BOOK PROBLEMS___________________________
Problem 01: Write up a two-column cash book for a pine furniture shop from the following details,
and balance it off as at the end of the month:
2008
May 1: Started in business with capital in cash $1,000.
2: Paid rent by cash $230.
3: G Broad lent us $2,000 by cheque, that was deposited into bank on the same day.
4: We paid J Fine by cheque $860.
5: Cash sales $190.
7: F Love paid us by cheque $34.
9: We paid A Moore in cash $92.
11: Cash sales paid directly into the bank $151.
15: P Hood paid us in cash $96.
16: We took $100 out of cash till and paid into the bank account.
19: We repaid G Broad $500 by cheque.
22: Cash sales paid directly into the bank $122.
26: Paid motor expenses by cheque $75.
30: Withdrew $200 cash from the bank for business use.
31: Paid wages in cash $320.
Problem 02: Write up a two-column cash book for a second-hand bookshop from the following:
2009
Nov 1: Balance brought forward from last month: Cash $295; Bank $4,240.
2: Cash sales $310.
3: Took $200 out of the cash till and paid it into the bank.
4: F Bell paid us by cheque $194.
5: Bought office equipment by cheque $310.
6: Deposited into the bank the cheque received from F Bell.
7: We paid L Root by cheque $94.
11: Withdrew $150 from the bank for business use.
12: Paid wages in cash $400.
13: Cash sales $430.
14: Paid motor expenses by cheque $174.
16: J Bull lent us $1,500 in cash.
20: K Brown paid us by cheque $174.
28: We paid general expenses in cash $35.
30: Paid insurance by cheque $320.
Problem 03: A three-column cash book for a soft drink wholesaler is to be written up from the
following details, balanced off, and the relevant discount accounts in the general ledger shown.
2008
Mar 1: Balance brought forward: cash $620; bank $7,142.
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2: The following paid their accounts by cheque, in each case deducting 5% cash discounts: G Slick
$260; P Fish $320; T Old $420 (all amounts are pre discount).
3: Deposited cheques received on March 2 into bank.
4: Paid rent by cheque $430.
6: F Black lent us $5,000 paying by cheque.
8: We paid the following accounts by cheque in each case deducting 2.5% cash discount: R White
$720;
G Green $960; L Flip $1,600 (all amounts are pre discount).
10: Paid motor expenses in cash $181.
12: J Pie pays his account of $90, by cheque $88, deducting $2 cash discount
15: Paid wages in cash $580.
21: Cash withdrawn from the bank $400 for business use.
24: Cash drawings $200 for personal use
25: Paid W Peat his account of $ 160, by cash $155, having deducted $5 cash discount.
29: Bought fixtures paying by cheque $720.
31: Received commission by cheque $120.
Problem 04: A three-column cash book of an office supply shop is to be written up from the
following details, balanced off, and the relevant discount accounts in the general ledger shown.
2008
June 1: Balances brought forward: Cash $420; Bank $4,940.
2: The following paid us by cheque, in each case deducting 5% cash discount: S Braga $820; L Pine
$320; G Hood $440; M Rae $1,040.
3: Cash sales paid directly into the bank $740.
4: Cheques received on June 2 into bank.
5: Paid rent by cash $340.
6: We paid the following accounts by cheque, in each case deducting 2.5% cash discount: M Peters
$360;
G Graham $960; F Bell $400.
8: Withdrew cash from the bank for business use $400.
10: Cash sales $1.260.
12: B Age paid us his account of $280 by cheque less $4 cash discount.
14: Paid wages by cash $540.
16: We paid the following accounts by cheque: R Todd $310 less cash discount $15; F Dury $412 less
cash discount $12.
20: Bought fixtures by cheque $4,320.
24: Bought a van paying by cheque $14,300.
29: Received $329 from A Line.
30: Cash sales $980.
30: Bought stationary paying by cash $56.

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