Question

Pronghorn Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Pronghorn Warehouse uses a periodic inventory system and at the end of June its inventory consisted of 33 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred:

July 1		Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination.
2		The correct company paid $165 freight on the July 1 purchase.
4		Received $150 credit for five suitcases returned to Trunk Manufacturers because they were damaged.
10		Sold 45 suitcases that cost $30 each to Satchel World for $55 each on account.
12		Issued a $275 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory.
15		Purchased 60 additional suitcases from Trunk Manufacturers for $31.50 each, terms n/30, FOB shipping point.
18		The company paid $180 freight on the July 15 purchase.
21		Sold 54 suitcases that cost $30 each to Fly-By-Night for $55 each on account.
23		Gave Fly-By-Night a $110 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers.
30		Paid Trunk Manufacturers for the July 1 purchase.
31		Received balance owing from Satchel World.

Record the July transactions for Pronghorn Warehouse.

Answer 1

Particulars		Amount	Amount
Purchase A/c	Dr	1,500.00
To Trunk A/c	Cr		1,500.00
Being Purchased from Trunk Manufacturer (50 units*Rs 30)
Freight A/c	dr	165.00
To Bank/Cash	cr		165.00
(Being Freight paid)
Trunk A/c	Dr	150.00
To Purchase return A/c	cr		150.00
(Being 5 units returned by trunk , 5unints *30)
Satchel World A/c	Dr	2,475.00
To sales	cr		2,475.00
(Being Sales made to Satchel units 40 * Rs.55)
Sales return a/c	dr	275.00
Satchel World A/c	cr		275.00
(Being sales has been returned Satchel 5 units*55)
Purchase A/c	Dr	1,890.00
To Trunk A/c	Cr		1,890.00
(Being purchase made for 60units *Rs.31.50)
Freight A/c	Dr	180.00
To Bank/Cash	Cr		180.00
(Being Freight paid)
Fly by night	Dr	2,970.00
To sales	cr		2,970.00
(Being 54 units sold @ 55 each)
Sales Return A/c	Dr	110.00
Fly by night	Cr		110.00
(Being sales returned by fly by night)
Trunk A/c	Dr	3,240.00
To cash/ Bank	Cr		3,240.00
Being Cash paid to Trucnk (1500-150+1890)
Bank/Cash	Dr	2,200.00
To Satchel World A/c	Cr		2,200.00
(Being Cash received towards sales from Satchel world Rs.2475- Rs.275 )