Enter the following transactions of M/s Hi-Life Fashions in purchases and purchases return book and post them to the ledger accounts for the month of September 2017:
| Date (2017) | Details |
|---|---|
| Sept. 01 | Purchase of following goods on credit from M/s Ratna Traders, as per Invoice No. 714: 25 Shirts @ ₹300 per shirt; 20 Pants @ ₹700 per pant; Less 10% trade discount. |
| Sept. 08 | Purchase of following goods on credit from M/s Bombay Fashion House, as per Invoice No. 327: 10 Fancy Trousers @ ₹500 per trouser; 20 Fancy Hat @ ₹100 per hat; Less 5% trade discount. |
| Sept. 10 | Goods returned to M/s Ratna Traders, as per debit note No. 102: 3 Shirts @ ₹300 per shirt; 1 Pant @ ₹700 per pant; Less 10% trade discount. |
| Sept. 15 | Purchase of following goods on credit from M/s Zolta Fashions, as per Invoice No. 6781: 10 Jackets @ ₹1,000 per jacket; 5 Plain shirts @ ₹200 per shirt; Less 15% trade discount. |
| Sept. 20 | Purchase of following goods on credit from M/s Bride Palace, as per Invoice No. 1076: 10 Fancy Lengha @ ₹2,000 per lengha; Less 5% trade discount. |
| Sept. 24 | Goods returned to M/s Bombay Fashion House as per debit note No. 103: 2 Fancy Trousers @ ₹500 per trouser; 4 Fancy Hat @ ₹100 per hat; Less 5% trade discount. |
| Sept. 28 | Goods returned to M/s Bride Palace as per debit note No. 105: 1 Fancy Lengha @ ₹2,000 per lengha; Less 5% trade discount. |
Record each credit purchase net of trade discount in the purchases book (total ₹54,350) and each credit return net of trade discount in the purchases return book (total ₹4,670). Suppliers' accounts are posted individually; the monthly totals are posted to Purchases A/c (Dr.) and Purchases Return A/c (Cr.).
Working — invoice values (net of trade discount)
- Ratna Traders: (25×300) + (20×700) = 7,500 + 14,000 = 21,500; less 10% = ₹19,350.
- Bombay Fashion House: (10×500) + (20×100) = 5,000 + 2,000 = 7,000; less 5% = ₹6,650.
- Zolta Fashions: (10×1,000) + (5×200) = 10,000 + 1,000 = 11,000; less 15% = ₹9,350.
- Bride Palace: 10×2,000 = 20,000; less 5% = ₹19,000.
- Return to Ratna: (3×300) + (1×700) = 1,600; less 10% = ₹1,440.
- Return to Bombay: (2×500) + (4×100) = 1,400; less 5% = ₹1,330.
- Return to Bride Palace: 1×2,000 = 2,000; less 5% = ₹1,900.
Solution — Books of Hi-Life Fashions
Purchases (Journal) Book
| Date | Invoice No. | Name of the Supplier (Account to be credited) | L.F. | Amount (₹) |
|---|---|---|---|---|
| 2017 Sept. 01 | 714 | Ratna Traders | 19,350 | |
| Sept. 08 | 327 | Bombay Fashion House | 6,650 | |
| Sept. 15 | 6781 | Zolta Fashions | 9,350 | |
| Sept. 20 | 1076 | Bride Palace | 19,000 | |
| Sept. 30 | Total | 54,350 |
Purchases Return (Journal) Book
| Date | Debit Note No. | Name of the Supplier (Account to be debited) | L.F. | Amount (₹) |
|---|---|---|---|---|
| 2017 Sept. 10 | 102 | Ratna Traders | 1,440 | |
| Sept. 24 | 103 | Bombay Fashion House | 1,330 | |
| Sept. 28 | 106 | Bride Palace | 1,900 | |
| Sept. 30 | Total | 4,670 |
Ledger posting
Ratna Traders Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2017 Sept. 10 | Purchases return | 1,440 | 2017 Sept. 01 | Purchases | 19,350 |
Bombay Fashion House Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2017 Sept. 24 | Purchases return | 1,330 | 2017 Sept. 08 | Purchases | 6,650 |
Zolta Fashions Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2017 Sept. 15 | Purchases | 9,350 |
Bride Palace Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2017 Sept. 28 | Purchases return | 1,900 | 2017 Sept. 20 | Purchases | 19,000 |
Purchases Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2017 Sept. 30 | Sundries as per purchases journal | 54,350 |
Purchases Return Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| 2017 Sept. 30 | Sundries as per purchases return book | 4,670 |
Purchases (Journal) Book total = ₹54,350 (posted to the debit of Purchases A/c); Purchases Return (Journal) Book total = ₹4,670 (posted to the credit of Purchases Return A/c).
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