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1. Mr. Kumara started a business, Araliya Enterprises by investing Rs. 100,000 on 1st January 2019. Following transactions were occurred during the month of January 2019. Show how following business transactions affect the accounting double entry system

Jan 2 : The company obtained a loan amounting to Rs. 600,000/- Jan 8 : Paid insurance bill Rs. 7,000/-

Jan 10 : Loan repayment amounting to Rs. 150,000/- Jan 15 : Purchases on cash Rs. 60,000/-

Jan 20 : Sales on cash Rs. 100,000/-

Jan 25 : Mr. Kumara invested additional 200,000/- to the business

Jan 30 : Mr. Kumara has taken Rs. 10,000/- from the business for his personal use.

2. Mrs. Kalyani decided to start a retail business with initial capital of Rs. 500,000/- cash and Rs. 700,000/- worth motor vehicle on 1st of April 2019. Details of transactions occurred during the month of April 2019 mentioned bellow. Show how following business transactions affect the accounting double entry system

April 3 Purchase on cash Rs. 50,000/-

April 5 Additional capital invested by the Mrs. Kalyani Rs. 300,000/-

April 10 Sales on cash Rs. 150,000/-

April 13 Mrs. Kalayani has withdrawn Rs. 5,000/- for her personal use.

April 16 Insurance and rent expense were paid during the month Rs. 8,000/- and Rs. 4,000/- respectively.

April 23 Credit purchase Rs. 80,000/- from Mr. Nimal

April 28 Sales on cash Rs. 150,000/-

April 30 Received rent income for the month amounting to Rs. 40,000/-

Practice questions on Primary Entry Books

3. The following credit purchases transactions made by Araliya Enterprises should be journalized.

2018 January 5 - Credit purchases from Kumara (Purchase invoice No 100)

• 100 Kg of sugar @ Rs. 130/- per Kg

• 50 Kg of salt @ Rs. 60/- per Kg

• 200 tea packets @ Rs. 80/- each Trade discount is 10%

2018 January 7 - Goods purchased on credit from Naleen (Purchase invoice No 101)

• 50 T shirts @ 500/- each

• 100 shirts @ 800/- each Trade discount is 5%

2018 January 15 - Bought 4 tables on credit @ 20,000 each for business usage from Saman Enterprises. (Not for selling purpose)

You are required to record above transactions in the purchase journal and prepare the ledger

4. The following returns outwards transactions made by Araliya Enterprises should be journalized (Based on the information given in question 01)

2018 January 6 - Goods returned to Kumara

• Sugar 40 Kgs
• Salt 30 Kgs

2018 January 10 Following goods were returned by the company to Naleen with the debit note No 1000

• T shirts 10
• Shirts 5

Record above transactions in the purchase return journal and post to the ledger

5. Following transactions were occurred during the month of February 2018 in Araliya Enterprises

Feb 5: Credit purchase from Kamal Rs. 50,000 (Purchase invoice No 001)

Feb 10: Cash purchase from Nimal Rs. 20,000 (Receipt No 005)

Feb 15: Credit purchase from Sudath Rs. 80,000. Trade discount is 10% (Purchase invoice No 002)

Feb 20 Credit purchase from Sunil Rs. 150,000. (Purchase invoice No 003) Record above transactions in the purchase journal and post the ledger

6. The following returns outwards transactions were made by Araliya Enterprises (Based on the information given in question 03)
   • Feb 6 trading goods returned to Kamal Rs. 20,000
   • Feb 12 Goods returned to Sudath Rs. 30,000

Record above transactions in the purchase return journal and post the ledger

7. Araliya Enterprises has sold following items during the month of April 2018

April 5 - following items sold on credit to Gayan with sales invoice No 60

• Sold 200 pillows @ 500 each
• Sold 250 bed sheets @ 700 each Trade discount 10%

April 10 - following items sold on credit to Kumari with sales invoice No 70

• Sold 500 pillow covers @ 300 each
• Sold 1000 Pillows @ 500 each Trade discount 5%

April 20 Pillows were sold on cash to Sudath Amounting to Rs. 50,000/-

8. The following returns inwards transactions are occurred. (Based on the information given in question 05)

Following sold goods are returned by the customers April 10 Goods returned by Gayan (Credit note no 76)

• 50 pillows
• 100 bed sheets

April 15 Goods returned by Kumari (Credit note no 66)

• 60 pillow covers

9. The following credit sales transactions should be recorded:

2018

July 3: Sold goods on credit to X for Rs.100

July 6: Goods returned from X Rs. 10

July 10: Credit sales to Y Rs.200

July 13: Returned goods from Y Rs.20

July 20: Sold stock for credit Rs. 300 to Z

July 26: Returns Inwards from Z Rs. 30

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