Question

Question 7, 2008 WAEC. Kofi is a dealer in general merchandise. The following are his transactions for the month of June, 2002. June 1: Sold goods to Mensah Le 20,000 less 10% trade discount. June 4: Purchases from Kwesi the following: 200 iron rods at Le20 each 100 fillers at Le30 each June 6: June 7: June 9: Invoice subject to 10% trade discount. Purchased from Asante Ltd., 10 bottles of gin at Le 30 each. Returned 60 iron rods purchased on 4th June, to kwesi. Sold the following to Kojo: 300 bags of cement at Le15 each, Less 15% trade discount, 150 tins of target at Le10 per tin. June 18: Kojo returned 10 bags of cement bought on the 9th of June. June 20: Sold to Jones 80 iron rods at Le50 each 110 bags of cement at Le16 each 250 fillers at Le35 each Invoice subject to 50% trade discount June 21: Jones was allowed 50% reduction on the total invoice price for goods damaged in transit. June 30: Purchased from Femi: 100 bags of cement at Le 15 each 50 gallon of oil paint at Le20 each 300 metal sheets at Le18 each You are required to write up the following: (a) sales day book (b) sales returns book (d)purchases returns book purchases day book.​

Answer 1

The question involves recording transactions in various accounting records, including the sales day book, sales returns book, purchases returns book, and purchases day book. Kofi's transactions are categorized by date and transaction type, and then recorded in their respective books with necessary calculations for discounts and returns.

Step-by-step explanation:

The student's question pertains to recording various business transactions in appropriate books of account according to the dates and details provided. To properly register these transactions, accounting records such as the sales day book, sales returns book, purchases returns book, and purchases day book will be utilized. Each book has a specific purpose: the sales day book records daily sales, the sales returns book notes goods returned by customers, the purchases returns book keeps track of goods returned to suppliers, and the purchases day book records daily purchases.

Examples of entries include:

• Sales Day Book: On June 1, Kofi sold goods to Mensah for Le 20,000 with a 10% trade discount. This will be recorded as Le 18,000 (Le 20,000 - Le 2,000) in the sales day book.
• Sales Returns Book: On June 18, Kojo returned 10 bags of cement. This will be entered in the sales returns book as Le 150 (10 bags x Le 15 per bag, with the original 15% trade discount).
• Purchases Day Book: On June 4, Kofi's purchases from Kwesi will include 200 iron rods at Le20 each and 100 fillers at Le30 each, and with a trade discount of 10%, this entry must be calculated accordingly.
• Purchases Returns Book: The purchase return of 60 iron rods on June 7 will be recorded here.

Answer 2

Answer: Table uploaded in the Explanation Section

Step-by-step explanation:

KOFFI SALES DAY BOOK

DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N) TOTAL (N)

1-Jun Mensah

Goods 20, 000

Less 10% Trade Discount (2, 000) 18, 000

9-Jun Kojo

300 Bags of Cement 15 4, 500

Less 15% Trade Discount -675 3, 825

150 Tins of Target 10 1, 500

5, 325

20-Jun Jones

80 Iron rods 50 4, 000

110 Bags of Cement 16 1, 760

250 Fillers 35 8, 750

14, 510

Less 15% Trade Discount (2, 177) 12, 333

35, 658

KOFFI PURCHASES DAY BOOK

DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N) TOTAL (N)

4-Jun Kwesi

200 Iron rods 20 4, 000

100 Fillers 30 3, 000

Less 10% Trade Discount -700 6, 300

6-Jun Asante Ltd

Bottles of Gin 30 300

30-Jun Femi

100 Bags of Cement 15 1, 500

50 Gallons of Oil Paint 20 1, 000

300 Metal Sheets 18 5, 400 7, 900

14, 500

SALES RETURNS BOOK

DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N)

18-Jun Kojo

10 Bags of Cement 15 150

2,250

PURCHASES RETURNS BOOK

DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N)

7-Jun Kwesi

60 Irons rod 20 1, 200

1, 200