During November 2026, Kano Trading Enterprise engaged in the following transactions:

- Nov 3: Purchased $200$ cartons of detergent for resale on credit from Bako Ltd at $\text{₦}5,000$ per carton, subject to a $10\%$ trade discount.
- Nov 10: Bought a delivery van for business operations on credit from Auto World for $\text{₦}1,500,000$ .
- Nov 15: Purchased $100$ cartons of detergent for resale from Danladi Stores for $\text{₦}450,000$ cash.
- Nov 22: Returned $20$ damaged cartons of detergent purchased on Nov 3 to Bako Ltd.
- Nov 28: Purchased $50$ cartons of detergent for resale on credit from Bako Ltd at $\text{₦}5,200$ per carton, subject to a $5\%$ trade discount.

Calculate the total amount to be recorded in the Purchases Journal for the month of November 2026.

Cevap: 1147000 ₦

Cevap

The total amount recorded in the Purchases Journal for November 2026 is ₦1,147,000.

The Purchases Journal only records credit purchases of merchandise intended for resale, net of trade discounts. Cash purchases are entered in the Cash Book, non-current asset purchases are entered in the General Journal, and returned goods are recorded in the Purchases Returns Journal.

Adım Adım Çözüm

Calculate the net amount for the Nov 3 transaction

₦900,000

Gross purchase = 200 × ₦5,000 = ₦1,000,000. Deducting the 10% trade discount (₦100,000) gives a net credit purchase of ₦900,000.

Filter out non-purchases journal transactions (Nov 10, Nov 15, Nov 22)

Nov 10, Nov 15, and Nov 22 excluded from Purchases Journal

Nov 10 is a credit purchase of a non-current asset (delivery van), which belongs in the General Journal (Journal Proper). Nov 15 is a cash transaction, recorded in the Cash Book. Nov 22 is a return of goods, recorded in the Purchases Returns Journal.

Calculate the net amount for the Nov 28 transaction

₦247,000

Gross purchase = 50 × ₦5,200 = ₦260,000. Deducting the 5% trade discount (₦13,000) gives a net credit purchase of ₦247,000.

Sum qualifying Purchases Journal entries

₦1,147,000

Adding the net credit purchases gives ₦900,000 (Nov 3) + ₦247,000 (Nov 28) = ₦1,147,000.

Anahtar Kavram

Purchases Journal Scope and Trade Discount Treatment

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