Page 73 - Book-keeping for Secondary Schools Student’s Book Form One

Recording of business transactions

Exercise 4.4

Use the following transactions to prepare purchases returns daybook for the month of
November 2023.

November 9 Returned to Ngosha 5 cartons of soap @TZS15,000. Reason: not
FOR ONLINE READING ONLY
the specified type.
12 Returned to Wandele 10 bags of wheat flour @TZS20,000. Reason:
expired goods.
15 Returned to Mwakalukila and received a credit note of 5 dozens of
juice TZS600 per bottle. Reason: poor quality.
18 Returned to Mdachi and received a credit note of 10 dozens of
biscuits @TZS12,000. Reason: not ordered
20 Received a credit note from Mosi of goods worth TZS31,500.
Reason: expired.

General journal
The general journal is a book of prime entry used to record business transactions that
are not recorded in special journals. The other name of the general journal is the journal
proper, and these names can be used interchangeably. Examples of entries recorded in
the general journal are entries for:
(a) Purchases or disposal of business assets not meant for sale.
(b) Correction of Book-keeping errors,
(c) Adjustments of balances prior to the preparation of financial statements,
(d) Closing entries, and
(e) Opening entries used in determining capital of an ongoing business that did not use
double entry before.
The focus will be on the examples of the purchase of assets and opening entries. The
remaining items will be covered later in higher forms. The general journal specifies
the double entries (debit and credit entries) required to be made in respect of different
transactions following the rules of debit and credit. As noted earlier, it is possible for the
general journal to be used to record all kinds of transactions conducted by the business.
This is because it gives direct guidance of the accounts and sides to which entries could
be posted.

However, in case a business owner decides to use only a general journal, and happens
to have some dealings on credit (sales, purchases, and returns), he or she will need to
have some memorandum records (schedules) of the details of such dealings. For this

65

Book Keeping Form 1 New 2024 FINAL.indd 65 18/10/2024 10:14