Page 65 - Book-keeping for Secondary Schools Student’s Book Form One
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Recording of business transactions
The columns for the sales daybook are the same as those used for purchases daybook,
except that the business is now dealing with its customers rather than its suppliers.
You will actually notice that the invoices used in worked out example 4.1 do not have
a defined sequence in invoice numbers. This is because they come from different
suppliers. In the case of sales journal, the invoice numbers will be following a clear
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sequence (see example 4.2), because the entity preparing the sales journal and issuing
the invoices is the same.
Activity 4.10
Purchases and sales daybooks are among the books of prime entry. A number of details
about different sales and purchases transactions are made in these books. You have
visited a retailer and advised that due to the nature of her transactions, she must have
transactions recorded in the special journals, including the sales daybook and purchases
daybook.
She agrees and gives you fee for designing the daybooks. However, she says that all
that she wants is the records in the daybooks that contain limited information like the
names, amounts and addresses of customers and suppliers. She does not want too many
details because it consumes more time and papers. Advise her on the details needed and
the importance of such details.
Example 4.2
Kassimu made the following sales during June 2023. You are required to record the
transactions in the sales journal for the month.
2023 June 1 Sold to Mambo Ltd. invoice number 04318:
80 packets of rice @ TZS 2,200.
60 bags of wheat flour, each with 3kgs @ TZS 4,500.
12 Sold to Kifundo Enterprise, invoice number 04319:
15 boxes of toothpaste @ TZS 2,600.
16 pieces of writing pads @ TZS 2,350.
19 Sold to Rudia stores, invoice number 04320:
11 pairs of running shoes @TZS 6,000.
20 shirts @ TZS 1,200.
25 Sold goods to Kalumanzira worth TZS 82,000 on credit and issued
invoice number 04321.
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