Zuma Enterprises recorded the following transactions during the month of April 2026:
| Date | Transaction Details |
|---|---|
| April 3 | Purchased 50 units of merchandise on credit from Boma Ltd at ₦8,000 per unit, subject to a 15% trade discount. |
| April 8 | Bought an office delivery van on credit from Motor Care Ltd for ₦2,500,000. |
| April 14 | Purchased 30 units of merchandise for cash from Zenith Stores at ₦7,500 per unit. |
| April 18 | Returned 10 defective units of merchandise purchased on April 3 to Boma Ltd. |
| April 22 | Purchased 40 units of merchandise on credit from Koko & Sons at ₦12,000 per unit, subject to a 10% trade discount and 5% cash discount terms. |
| April 27 | Received 5 units of returned merchandise from a credit customer valued at ₦50,000. |
What is the total amount recorded in the Purchases Journal for April 2026 to be transferred to the Purchases Account in the General Ledger?
Answer: 772000 ₦
Answer
The total amount recorded in the Purchases Journal for April 2026 is ₦772,000.
The Purchases Journal strictly records credit purchases of goods intended for resale, net of trade discounts. Cash purchases are entered in the Cash Book, non-current asset purchases are recorded in the General Journal, and purchases returns are recorded in the Purchases Returns Journal. Cash discounts are ignored when making entries in the Purchases Journal. Adding the net credit purchases of ₦340,000 (April 3) and ₦432,000 (April 22) yields a total Purchases Journal transfer of ₦772,000 to the debit of the Purchases Account.
Step-by-Step Solution
Key Concept
Scope and Entry Rules of the Purchases Journal