Chapter 5 Books of Original Entry and Ledgers (III)

Question 7
Record the following transactions into the books of original entry including the journal, return outwards
journal and cash book.
2009
May 1 Bought office equipment on credit from Hugo Co for $22,330.
" 3 The proprietor took furniture costing $500 from the business for his personal use.
" 5 The proprietor took goods totalling $300 as a gift for his wife and $300 cash for his personal use.
" 8 Bought goods for $3,000 in cash.
" 10 A sum of $230 owed by a customer, Brooke Lam, was settled by cheque.
" 16 Settled Hugo Co’s account by cheque.
" 18 Bought a motor vehicle for $30,000 by cheque from Cooper Motors Ltd.
" 22 Returned an item of office equipment costing $1,200 to Hugo Co and received a cheque of the
same amount from Hugo Co.
" 27 Goods costing $250 were returned to the supplier, Wilson Ltd. The refund would be made next
month.
" 28 Withdrew cash $1,300 from the bank for business use.
" 30 Insurance premiums of $4,560 on the proprietor's apartment were paid from the business bank
account.

Answer:
The Journal
Date Details Dr Cr
2009 $ $

Cash Book
Date Details Cash Bank Date Details Cash Bank
2009 $ $ 2009 $ $

Returns Outwards Journal

Date Details Amount
2009 $
Question 8
Record the following transactions in the books of original entry including the journal, cash book and
purchases journal.
2009
Jun 1 Dominic So, the owner, deposited a sum of $75,000 into the business bank account.
" 2 Paid rent of $1,700 in cash.
" 5 Bought office furniture on credit from Ace Furniture Co for $3,000.
" 10 Bought goods on credit from Ian Lai for $660.
" 13 Dominic took office furniture costing $6,500 from the business for his personal use.
" 18 Bought fixtures on credit from Zoe Ltd for $12,300.
" 22 A trade debtor, Jessica Chan, settled her account of $4,550 in cash.
" 26 Deposited $800 cash into the bank.
" 28 A trade debtor, Maria Kwan, owed the business $2,000. She was unable to repay and Dominic
agreed to accept a photocopier from her to settle the debt.
" 30 Bought goods on credit from Cynthia Ltd for $1,900, less a 10% trade discount.

Answer:

Cash Book
Date Details Cash Bank Date Details Cash Bank
2009 $ $ 2009 $ $

The Journal
Date Details Dr Cr
2009 $ $

Purchases Journal
Date Details Amount
2009 $
Chapter 5 Books of Original Entry and Ledgers (III)
Question 17
Use the journal to open a set of books for Justin Yim, the owner of a boutique, to record assets, liabilities and capital. Then record
the daily transactions for September 2008 in the books of original entry and cash book.
2008
Sept 1 Assets: Shop premises $550,000; Motor vehicles $76,000; Shop equipment $60,000; Inventory $126,800; Accounts
receivable: Adrian Tam $6,000, Lily Ng $5,000; Bank $94,600; Cash in hand $23,100.
Liabilities: Accounts payable: Julia Lam $6,000, Victoria Ho $2,000.
" 1 Paid $3,500 by cheque for water and electricity.
" 2 Paid $12,000 in cash for rent.
" 6 Goods bought on credit from: Victoria Ho $3,000
Julia Lam $7,920
Henry Lui $5,640
Sofia Cheung $4,680 (10% trade discount to be deducted)
" 7 Cash drawings of $3,000 were made by Justin Yim.
" 8 Goods sold on credit to: Adrian Tam $7,920
Louis Pang $10,560 (10% trade discount to be deducted)
Carlos Ho $10,440
Jasmine Lam $6,000
" 10 Paid $5,200 in cash for motor vehicle repairs.
" 13 Goods sold on credit to: Bryan Tse $3,840
Alex Lau $6,960
" 16 Goods returned to: Julia Lam $1,560
Henry Lui $2,100
" 17 Goods returned from: Lily Ng $1,400
Adrian Tam $1,680
" 18 Bought a lorry from Destiny Motors Ltd for $34,000 by cheque.
" 19 The following trade debtors settled their accounts by cheque, less a 5% cash discount: Adrian Tam, Lily Ng, Jasmine Lam.
" 19 Goods of $1,000 were returned to Victoria Ho.
" 20 Goods bought on credit from: Parker Pang $4,608
Sofia Cheung $8,352
" 21 The following trade creditors’ accounts were settled by cheque, less a 5% cash discount: Julia Lam, Henry Lui, Victoria Ho.
" 23 Bought a photocopier on credit from Carson Co for $22,000 for use in the shop.
" 24 Justin took shop equipment costing $1,500 for his personal use.
" 25 Paid $2,500 by cheque for rates.
" 29 Paid $1,540 by cheque for salaries.
" 30 Settled Carson Co’s outstanding balance by cheque.

Answer:
The Journal
Date Details Dr Cr
2008 $ $
 Purchases Journal
Date Details Amount
2008 $

Sales Journal
Date Details Amount
2008 $

Returns Inwards Journal

Date Details Amount
2008 $

Returns Outwards Journal

Date Details Amount
2008 $

Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank
2008 $ $ $ 2008 $ $ $
Question 18
Use the journal to open a set the books for Bobbie Yu, a sole trader, to record assets, liabilities and capital. Then record the daily
transactions for September 2009 in the books of original entry and cash book.
2009
Sept 1 Assets: Premises $150,000; Motor vehicles $60,000; Office equipment $50,000; Inventory $26,800; Accounts
receivable: Tiger Hung $5,000, Kitty Ng $8,000; Bank $224,500; Cash in hand $47,000.
Liabilities: Accounts payable: Wolfson Yiu $5,000, Yobie Ho $20,000.
" 1 Paid $1,500 by cheque for rent.
" 2 Goods bought on credit from: Wolfson Yiu $2,500
Toby Lee $6,600
Henry Ho $47,000 (5% trade discount to be deducted)
Amy Wong $3,900
" 5 Goods sold on credit to: Kenneth Ho $6,600
Tony Sun $88,000 (5% trade discount to be deducted)
Sunny Cheung $8,700
Kitty Ng $5,000
" 7 Paid $7,300 in cash for motor expenses.
" 9 Cash drawings of $4,320 were made by Bobbie Yu.
" 10 Goods sold on credit to: Tony Sun $3,200
Logan Ping $5,800
" 11 Goods returned from: Kenneth Ho $1,300
Sunny Cheung $1,700
" 15 Bought a delivery van on credit from Samuel Motors for $26,000.
" 17 The following trade debtors settled their accounts by cheque, less a 5% cash discount: Tiger Hung, Kitty Ng, Sunny
Cheung.
" 18 Goods of $900 were returned to Amy Wong.
" 19 Goods bought on credit from: Jordan Wan $7,720
Isaac Chan $8,550
" 21 The following trade creditors’ accounts were settled by cheque, less a 5% cash discount: Wolfson Yiu, Yobie Ho,
Amy Wong.
" 22 Salaries of $3,440 were paid by cheque.
" 24 Paid $3,500 by cheque for electricity.
" 28 Settled Samuel Motors’ outstanding balance by cheque.
" 29 Bought two computers for $11,000 each on credit from Billy Co.

Answer:
The Journal
Date Details Dr Cr
2009 $ $
 Purchases Journal
Date Details Amount
2009 $

Sales Journal
Date Details Amount
2009 $

Returns Inwards Journal

Date Details Amount
2009 $

Returns Outwards Journal

Date Details Amount
2009 $

Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank
2009 $ $ $ 2009 $ $ $