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Hi All,
I hope I'm not doing anything wrong by asking this.
Please could someone help me??????
I have got my self really confused on question 5 in assignment 3.
Many thanks
Anj.
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Hi,
Could you specify what is it exactly you are not sure about?
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Hello,
Th question is:
The monthly total (from the purchase returns day book) of goods returned to suppliers in October, amounting to £200.00, has been DEBITED to the purchases return acccount.
Draft the journal entry.
Thank you
Anj.
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Anjelikasaid:
“Hello,
Th question is:
The monthly total (from the purchase returns day book) of goods returned to suppliers in October, amounting to £200.00, has been DEBITED to the purchases return acccount.
Draft the journal entry.
Thank you
Anj. ”
Anjelika
The question states it has been incorrectly debited to the purchases returns account - so you need to write out the journal to correct this error.
Hope this help.
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Hi Guys,
I now have had 3 different people look at this of which two do journals everyday.
None of them can work out how this can be done.
You are told the the amount of £200.00 has been DEBITED to the purchases return account but you are not told from which side the £200.00 came from in the Purchase Returns Day Book.
This is where my problem is.
Please help I'm really begining to get stress over this.
Thank you
Anj.
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Anjelika
All Purchase Returns should only ever be posted to one side - the opposite of what a Purchase is posted to. This £200 has been posted in error to the DR side, so obviously it should have been a ???
You need to write out the journal posting to correct this error. Sorry if I'm not explaining it well enough, but without giving you the actual answer I can't think how else to explain it. If this doesn't help it might be worth you contacting your school to see if they can explain it any better.
J
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Anjelikasaid:
“Hi Guys,
I now have had 3 different people look at this of which two do journals everyday.
None of them can work out how this can be done.
You are told the the amount of £200.00 has been DEBITED to the purchases return account but you are not told from which side the £200.00 came from in the Purchase Returns Day Book.
This is where my problem is.
Please help I'm really begining to get stress over this.
Thank you
Anj.”
Evening Anj,
When you transfer the data from the Purchases Day Book to the ledger accounts, you post the net to the Cr side of the Purchases Returns Account, the VAT to the Cr side of the VAT Account, and the gross to the Dr side of the Supplier Account, ie Joe Bloggs.
If you are only being asked to correct the Purchases Returns Account, as the net & VAT were posted correctly, then you need to post a Cr of £200 to Purchases Returns to clear the error, then repeat this journal entry again so that it ends up on the credit side showing £200. To compldete the double entry correction, you would perhaps need to use the Suspense Account by posting two Dr journals of £200 each, unless you are being asked to correct the Supplier Account and VAT Account also, which I don't think you are, are you?
I do hope I have helped, and you can continue with your studies. Any problems with this, just let me know.
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Hi J,
Thank you, you are being a great help.
Of course I'm not expecting you to give me any answers at all :o))
My answer before I started this thread was:
Dr £200.00 ??????
Cr £200.00 Purchase Returns Account
It's the Dr side that I'm stuck with.
Many thanks again
Anj.
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Anj
Did angle's explanation help you? If not think about where you post the two sides of a purchase, debit purchases and credit supplier. A purchase return would be completely the opposite way around, credit purchase returns and debit supplier! But if you are unsure who the supplier is then is would be the suspense account.
J
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Sorry didn't see Angie's answer, must have been typing my reply to you when it came in.
Think I got now 
Dr Suspense
Cr Purchase Returns
Thank you both so very much for your help. Hopefully it will be a good nights sleep tonight with no bookkeeping going round the head.
This is the only one I got totally stuck on 
Many thanks again
Anj.
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- Companion
- Accredited Training Provider IS
- 435 posts
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Hi Anj,
This looks like one of our questions, and I wish that you had contaced us directly as we could have given you specific advise based on the question. It looks as though you have almost got there and page 37 of the lesson would have given you a hint toward what the debit entry would have been. However, I would ask you to consider what value should be entered into the Journal in order to transfer the entry from a debit to a credit.
At the time of you posting this question we had a team of tutors available to help you. In future don't hesitate to contact us as we could have this issue cleared up in a couple of minutes.
Good luck and hopefully we'll hear from you again should you require any further guidance.
Kind regards
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Hi Brian,
Sorry I didn't mean to upset any one at Ideal Schools.
I wanted to try and find out the answer by myself before I came to you or any of the other tutors.
I will be looking at this again tomorrow, with a fresh head. So if I'm still not sure I will of course be contacting a tutor, if it's not going to be too late. (after the horse has bolted as if to say).
Kind Regards
Anj.
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- Companion
- Accredited Training Provider IS
- 435 posts
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Hi Anj,
I, or rather, we (Ideal) are not upset with you and I sincerely beleive that this forum is a great source of information and encouragement. However, you have paid for our tutorial services and we are delighted to help you, and other students, with whatever questions arise from the courses of study.
This particular question is a tricky one but I'm certain that, come tomorrow, all will be crystal clear.
Kind regards
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