1
A Jones has the following credit purchases and credit sales for May:
May 1 Sold to M Marshall: brass goods £24, bronze items £36. All less 25 per cent trade discount
Sold to R Richards: tin goods £70, lead items £230. All less 331/3 per cent trade discount
9 Bought from C Clarke: tin goods £400 less 40 per cent trade discount
16 Bought from A Charles: copper goods £320 less 50 per cent trade discount
23 Sold to T Young: tin goods £50, brass items £70, lead figures £80. All less 20 per cent
trade discount
31 Bought from M Nelson: brass figures £100 less 50 per cent trade discount
Required:
(a) Write up sales and purchases day books.
(b) Post the items to the personal accounts.
(c) Post the totals of the day books to the sales and purchases accounts.
(d) What are the books of prime entry within a business and why are they so called? Illustrate your
answer with suitable examples.