Question

PURCHASE LEDGER                      
                      
You have been appointed as a Purchase Ledger Control Manager for Dynasty Limited. During the month you came across the following transactions:                      
                      
                      
                      
                      
                      
                      
Date                      
                      
01/01/2018   Bought goods on credit from the following entities:                  
                      
   Entity Name   "Amount
£"              
   Ellis    8,100               
   Mendez Trading   13,050               
   Gibson   3,750               
   Liners Limited   9,600               
                      
                      
01/10/2018   A payment of £ 7,000 was made to Ellis                   
                      
                      
15/01/2018   Following is the detail of the payments made to the entities on this date:                  
                      
   Entity Name   "Amount
£"   "Discount
£"          
   Gibson   3,500    250          
                      
   The above discount is received for the early payment                  
                      
18/01/2018   Purchases valuing £ 400 returned to Liners Limited. And a payment of 9,000 made through cheque receiving a discount of £200                  
                      
                      
20/01/2018   Following purchases were made on credit from the following entities:                  
                      
   Entity Name   "Amount
£"              
   Fastshop   16,500               
   Mendez Trading   7,530               
Required:                      
                      
a)   Dynasty Limited maintains control accounts for payables in the main ledger, and accounts for individual suppliers / creditors in a payable ledgers.                  
                      
                      
   You are required to record journa entries for the above transactions and post them to the Purchases Ledgers, Control Accounts and payables ledgers                  
                      

Answer 1

CR. (f) DATE 01/01/2018 3,100 13,050 3,750 9,600 01/10/2018 7,000 PARTICULER IPURCHASE A/C DR. 34, 5oo. TO ELLIS TO MENDEZ TRADING To GIBSON TO LINERS LIMITED (BEING CREDIT GOODS PURCHASE FROM ELLIS, MENDEZ TRADING CHIBSON LINERS LIMITED) ELLIS AIC DRIL TO CASH A/C (Being cash paid to EILIS) GIBSON AIC DR 3,750 TO CASH Ale TO DISCOUNT (Being cash paid to Gibson. & discount received on carly payment LINERS LIMITED DR. 9 600 TO BANK Ale TO PURCHASE RETURN TO DISCOUNT ICBEING MADE PAYMENT TO LINERS UIMITED, BORETURN CHOOS. DISCOUNT RECEIVED 15/01/2018 3500 2.50 18/01/2018 9,000 400 200 24,030 20/01/2018 PURCHASE ALC DR TO FATSHOP TO MENDEZ TRADING (BEING CREDIT PURCHASE FROM FANSHOP a MENDEZ TRADING) 16,500 7.530 PURCHASE LEDGER OR: PARTICULARS TA PATE 1 PARTICOLARS 01/01/2018 To ELLIS TO MENDEZ TRAD TO GIBSON TO LINERS LIMITED 20f0f2018 TO FATSHOP TO MENDES TRADING E DATS 8100 13,050 3,750 9,600 16500 7,530 58,530