(a) The volume of transactions of all the business houses rose to a great extent and it became clear that the journal was inadequate as the sole book of original entry. It was found advantageous to have separate books for the different activities like purchases.

Question

REQUIRED:

Identify and briefly explain the main types of other Journals.

 

(b) Record the following transactions in a suitable ruled Purchases Day Book.

March 1     

Purchase goods from M/s A. & Co. 20 bales of cotton @ TZS.100,000 per bale, less trade discount @ 5% and cash discount @ 6%.

March 12 

Purchased from Madura coats 1,500 metres of cotton fabrics @ TZS.200 per metre, less trade discount @ 10%.

March 25

Purchased from Murshid Silk House 20 bales of silk pieces @ 300,000 per bale, less trade discount @ 5%.

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