Page 90 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Stage two: Posting to the general ledger
The general ledger posting involves the periodic (weekly or monthly) totals of the
journal. These are posted to the sales returns account and the trade receivables account
as they represent decreases in revenues (sales, through returns) and assets, respectively.

The entries made are therefore:
FOR ONLINE READING ONLY
Debit: sales returns account
Credit: trade receivables account

Example 5.2
Kassimu made the following sales during the month of June 2023.

2023 June 1 Sold to Mambo:
80 packets of rice @ TZS 2,200.

60 bags of wheat flour with 3kgs @ TZS 4,500.
12 Sold to Kifundo Enterprise:
15 boxes of toothpaste (50grms) @ TZS 2,600.

16 pieces of writing pads @ TZS 2,350.
19 Sold to Rudia stores:

11 pairs of running shoes @TZS 6,000.
20 school shirts @ TZS 1,200.

25 Sold goods to Kalumanzira worth TZS 82,000 on credit.
28 Sold goods to Glory:

15 pairs of sandals @ TZS 8,500.
10 bags of rice with 3kgs @ TZS 6,000.
From the given sales transactions above, the following goods were returned:

June 2 Mambo returned 10 packets of rice @ TZS 2,200 because they were

spoiled.
8 Rudia stores returned:

3 pairs of running shoes @ TZS 6,000 because they were oversize.
2 school shirts @ TZS 1,200 because they were of the wrong colour.
18 Kifundo Enterprises returned:

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Student’s Book Form One

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