Question

PURCHASE LEDGER                      
                      
You have been appointed as a Purchase Ledger Control Manager for Aurora Limited. The core business activities of the company is to sale baby care products to various cities of United Kigdom. Following transactions have took place during the month of January 2018 regarding purchasing of stock items.                      
                      
                      
                      
                      
                      
                      
Date                      
                      
01/01/2018   Purchased baby toys on credit from the following entities, the credit limit is 30 days and if the payment is made within 30 days, a discount of 3% of the purchase value will be offered:                  
                      
                      
   Entity Name   "Amount
£"              
   Smile Limited   2,000               
   Benz Limited   1,500               
                      
                      
01/10/2018   Good worth £ 200 and £ 100 returned to Smile Limited and Bez Limited respectively.                  
                      
                      
15/01/2018   Made a partial payment of £ 800 and £ 700 to Smile Limited and Benz Limited resprectively.                  
                      
                      
18/01/2018   Purchased Baby Diapers and Baby Skin care stock for £ 5,000 on credi and for £ 2,000 on cash                   
                      
                      
20/01/2018   Paid Smile Limited in full and received an agreed discount.The payment made through bank transfer.                  
                      
                      
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

Date	Particulars	Debit	Credit
0101/2018	General ledger adjustment account	£ 3,500.00
	To Creditors ledger adjustment account(Smile ltd)		£ 2,000.00
	To Creditors ledger adjustment account(Benz ltd)		£ 1,500.00
	(Being purchased baby toys from Smile ltd and Benz ltd)
1/10/2018	Creditors ledger adjustment account(Smile ltd)	£     200.00
	Creditors ledger adjustment account(Benz ltd)	£     100.00
	To General ledger adjustment account		£     350.00
	(Being purchase returns from Smile and Benz lts)
1/15/2018	Creditors Ledger account	£ 1,500.00
	To General Ledger adjustment account(Smile ltd)		£     776.00
	To General Ledger adjustment account (Benz ltd)		£     679.00
	To General Ledger adjustment account (Discount receivable)		£        24.00
	To General Ledger adjustment account (Discount receivable)		£        21.00
	(Being partial payment made )
1/18/2018	General ledger adjustment account	£ 7,000.00
	To Creditors ledger adjustment account (Credit)		£ 5,000.00
	To Creditors ledger adjustment account (Cash)		£     200.00
	(Being 18/01/2018   Purchased Baby Diapers and Baby Skin care stock for £ 5,000 on credit and for £ 2,000 on cash )
1/20/2018	Creditors ledger adjustment account(Smile ltd)	£ 1,200.00
	To General Ledger adjustment account		£ 1,164.00
	To General Ledger adjustment account (Discount receivable)		£        36.00
	(20/01/2018   Paid Smile Limited in full and received an agreed discount.The payment made through bank transfer.)

		in the books of Aurora Ltd
		Smile Ltd account
Date	Particulars	Amount	Date	Particulars	Amount
	To General ledger adjustment account			By General ledger adjustment account
1/10/2018	to Purchase returns	£                      200.00	1/1/2018	Purchases	£         2,000.00
1/15/2018	to Bank	£                      776.00
1/15/2018	to discount	£                         24.00
1/20/2018	To Bank	£                   1,164.00
1/20/2018	to discount	£                         36.00	1/20/2018	By Balance c/d	200
		£                   2,200.00			£         2,200.00
		in the books of Aurora Ltd
		Benz Ltd account
Date	Particulars	Amount	Date	Particulars	Amount
	To General ledger adjustment account			By General ledger adjustment account
1/10/2018	Purchase returns	100	1/1/2018	Purchases	1500
1/15/2018	to Bank	679
1/15/2018	to discount	21
1/20/2018	to Balance c/d	700
		1500			1500