Question

Stationery Hut is engaged in the purchase and sale of stationery products. The inventory of the
company ranges from carbon pencil to cartridge. It has earned the reputation of delivering high
quality products in a timely manner. The following transactions are relating to Stationery Hut for
the month of April 2020.
Date Transaction
April 1 Purchased merchandise from White Company for OMR 5,000 under credit terms of
1/15, n/30, FOB Shipping Point.
2 Sold merchandise to Terry Company for OMR 1,000 under credit terms of 2/10, n/60,
FOB shipping point. The merchandise had cost OMR 600.
3 Paid OMR 150 cash for freight charges on the purchase of April 1.
8 Sold merchandise that cost OMR 1,200 for OMR 1,800 cash.
9 Purchased merchandise from Kane Company for OMR 2,500 under credit terms of
2/15, n/60, FOB destination.
11 Received OMR 400 credit memorandum from the return of merchandise purchased
on April 9.
12 Received the balance due from Terry Company for the credit sale dated April 2, net
of the discount.
16 Paid the balance due to White Company within the discount period.
19 Sold merchandise that cost OMR 1,000 to July Company for OMR 1,400 under credit
terms of 2/15, n/60, FOB shipping point.
21 Issued OMR 200 credit memorandum to July Company for an allowance on goods
sold on April 19.
22 Paid Kane Company the balance due after deducting the return and discount.
24 Received the balance due from July Company for the credit sale dated April 19, net
of allowance and discount.
30 Sold merchandise that cost OMR 5,000 to Terry Company for OMR 7,000 under
credit terms of 2/10, n/60, FOB shipping point.
Question – 3:
a. Under Perpetual Inventory System, you are required to prepare;
i. Special Journals and General Journal.
ii. Accounts Receivable Subsidiary Ledger Accounts and Accounts Payable Subsidiary
Ledger Accounts. Accounts Receivable Control Account and Accounts Payable Control Account

Answer 1

SPECIAL JOURNALS

CASH PAYMENTS JOURNAL	PAGE _____
DATE	CK NO.	DESCRIPTION	POST REF.	ACCOUNTS PAYABLE DEBIT	OTHER ACCOUNTS DEBIT	PURCHASES DISCOUNTS CREDIT	CASH CREDIT
ACCOUNT TITLE	POST REF.	AMOUNT
April	3		Freight In			Freight Charges		150.00		150.00
	16		White Company 1/15, n30		5,000.00				50	4,950.00
	22		Kane Company 2/15, n60		2,100.00				42	2,058.00
TOTALS	7,100.00		150.00	92.00	7,158.00

CASH RECEIPTS JOURNAL	PAGE
DATE	DESCRIPTION	POST REF.	ACCOUNTS RECEIVABLE CREDIT	SALES TAX PAYABLE CREDIT	SALES CREDIT	OTHER ACCOUNTS CREDIT	SALES DISCOUNTS DEBIT	CASH DEBIT
ACCOUNT TITLE	POST REF.	AMOUNT
April	8	Cash Sales				1,800.00					1,800.00
	12	Terry Company 2/10, n/60		1,000.00						20	980.00
	24	July Company 2/15, n/60		1,200.00						24	1,176.00
TOTALS	2,200.00		1,800.00			44.00	3,956.00

SALES JOURNAL	PAGE
DATE	SALES SLIP NO.	CUSTOMER'S ACCOUNT DEBITED	POST REF.	ACCOUNTS RECEIVABLE DEBIT	SALES CREDIT
2013
April	2		Terry Company		1,000.00	1,000.00
	19		July Company		1,400.00	1,400.00
	30		Terry Company		7,000.00	7,000.00
	30		TOTALS		9,400.00	9,400.00

SALES JOURNAL	PAGE
DATE	PURCHASE SLIP NO.	SELLER"S ACCOUNT CREDITED	POST REF.	ACCOUNTS PAYABLE CREDIT	PURCHASE DEBIT
April	1		White Company		5,000.00	5,000.00
	9		Kane Company		2,500.00	2,500.00
	30		TOTALS		7,500.00	7,500.00

GENERAL JOURNAL

GENERAL JOURNAL	PAGE
DATE	ACCOUNT TITLES AND EXPLANATION	REF.	DEBIT	CREDIT
11-Apr	Accounts Payable/Kane Company		400.00
		Purchase Return and Allowances			400.00
		(Return of Merchandise to Kane Company)
21-Apr	Sales Return and Allowances		200.00
		Accounts Receivable/July Company			200.00
		(Return of Merchandise from July Company accepted)

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

NAME	Terry Company
ADDRESS
DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT	BALANCE
02-Apr	Sales	SJ	1,000		1,000
12-Apr	Payment Received	CR		1,000	-
30-Apr	Sales	SJ	7,000		7,000

NAME	July Company
ADDRESS
DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT	BALANCE
19-Apr	Sales	SJ	1,400		1,400
21-Apr	Sales Return	GJ		200	1,200
24-Apr	Payment Received	CR		1,200	-

ACCOUNTS PAYABLE SUBSIDIARY LEDGER

NAME	White Company
ADDRESS
DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT	BALANCE
01-Apr	Purchases	PJ	-	5,000	5,000
16-Apr	Payment made	CP	5,000	-	-

NAME	Kane Company
ADDRESS
DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT	BALANCE
09-Apr	Purchases	PJ		2,500	2,500
11-Apr	Purchase Return	GJ	400		2,100
22-Apr	Payment made	CP	2,100	-	-

ACCOUNTS RECEIVABLE CONTROL ACCOUNT

ACCOUNT Accounts Receivable	ACCOUNT NO.
DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT	BALANCE
DEBIT	CREDIT
April	12		CR		1,000		1,000
	21		GJ		200		1,200
	24		CR		1,200		2,400
	30		SJ	9,400		7,000

ACCOUNTS PAYABLE CONTROL ACCOUNT

ACCOUNT Accounts Payables	ACCOUNT NO.
DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT	BALANCE
DEBIT	CREDIT
April	1		PJ		5000		5,000.00
	9		PJ		2500		7,500.00
	11		GJ	400			7,100.00
	16		CP	5,000.00			2,100.00
	22		CP	2,100.00			-

SJ: Sales Journal
PJ: Purchase Journal
GJ: General Journal
CR: Cash Receipts Journal
CP: Cash Payments Journal