Practice Activity 2.9 The purchases day book

Madam Ebere owns Ebere Enterprises. The business commenced operations in April 2017. The business trades in educational books and materials. The following transactions occurred in Ebere Enterprises during July 2019:

July 2: Madam Ebere bought 50 General Mathematics textbooks on credit from Logman Publishers for ₦250,000. Purchases Invoice Number 9782 was used to record the transaction.

July 7: 145 calculators were bought on credit from Eletro Ltd for ₦280,000. Purchases Invoice Number 9783 was used to record the transaction.

July 9: 120 Quantitative Analysis textbooks were bought from Mr. Philip for ₦480,000. Purchases Invoice Number 9784 was used to record the transaction.

July 13: 110 realms of A4 paper were bought on credit from Bright Books Enterprises for ₦225,000. Purchases Invoice Number 9785 was used to record the transaction.

July 19: 100 mathematical sets were bought on credit from Brilliant Minds Enterprises for ₦150,000. Purchases Invoice Number 9786 was used to record the transaction.

July 27: 100 staplers were bought from Good Work Ltd for ₦120,000 on credit. Purchases Invoice Number 9787 was used to record the transaction.

The previous Purchases Day Books have been prepared every month. The Purchases Ledger is prepared based on the presence of credit suppliers. The transaction with each supplier is recorded on a separate page. As at June 30, 2019, there were eight credit suppliers: Chukwuma, Chimnonso, Obioma, Igwe, Nkem, Obika, Ike, and Emeka.

Required: Record the transactions in the Purchases day book for July 2019.

A suggested answer to practice activity 2.9

Since the Purchases Day Book is prepared every month, the Purchases Day Book for July 2019 is the 28th one prepared since the business commencement. The Purchases Day Book is prepared manually; it is assumed that it is on page 28.

If there were already eight credit suppliers, then start with the 9th credit supplier in the Purchases Day Book for July 2019. The folio column represents the posting to every supplier’s account in the Purchases or Trade Payables Ledger.