MERCHANDISING JOURNAL( if you complete these maths you will get 10 marks inshallah)
Q.1 On June 10, Naveen Company purchased $8,000 of merchandise from Jarrah Company, FOB shipping point, terms
2/10, n/30. Naveen pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Jarrah for credit
on June 12. The fair value of these goods is $70. On June 19, Naveen pays Jarrah Company in full, less the purchase
discount. Both companies use a perpetual inventory system.
Instructions
(a) Prepare separate entries for each transaction on the books of Naveen Company.
(b) Prepare separate entries for each transaction for Jarrah Company. The merchandise purchased by Naveen on June 10
had cost Jarrah $4,800.
2. On June 10, Asif Company purchased Tk. 50,000 of merchandise from Zareef Company FOB
shipping point, terms 2/10, n/30. Asif pays the freight costs of Tk. 1,000 on June 12, Damaged goods
totaling Tk.4,000 are returned to Zareef Company on June 14. On June 19, Asif Company pays the
amount due, less the purchase discount. Both the company use periodical inventory system.
Instructions:
(i) Prepare necessary entries for each transaction on the books of Asif Company.
(ii) Assume that Asif Company made the final payment on June 25 instead of June 19. Give entry for this
transaction.
3. Information related to BD company is given below. Give journal entries under perpetual inventory system:
April5 Purchased merchandise on credit from Meghna Co. Tk.1,200, FOB shipping point, term 2/10, n/60.
7
Paid freight on April 5 purchase Tk. 200.
9
Received credit from Meghna Co. for merchandise returned Tk. 300.
10
Sold merchandise on account for Tk. 900, term n/30. The merchandise sold at a cost of Tk. 540.
12
Purchased merchandise from Shakil Co. Tk. 670, term 1/10, n/30.
14
Paid Meghna Co. in full, less discount.
17
Received credit from Shakil Co. for merchandise returned Tk. 70.
20
Made sales on account for Tk. 600, terms 2/10, n/30. The cost of the merchandise sold was Tk. 360.
24
Paid Shakil Co. in full.
25
Granted an allowance to credit customer on April 20 sale, Tk. 60.
29
Received payment in full, less discount from April 20 sale.
4: Osman Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of
June, Osman inventory consisted of suitcases costing $1,200. During the month of July, the following merchandising
transactions occurred.
July 1 Purchased suitcases on account for $1,800 from Jamal, FOB destination, terms 2/10, n/30. The appropriate party
also made a cash payment of $100 for freight on this date.
3
Sold suitcases on account to Sohel for $2,000. The cost of suitcases sold is $1,200.
9
Paid Jamal in full.
12
Received payment in full from Sohel.
17
Sold suitcases on account to Kamal for $1,800. The cost of the suitcases sold was $1,080.
18
Purchased suitcases on account for $1,900 from Hume Manufacturers, FOB shipping point, terms 1/10, n/30. The
appropriate party also made a cash payment of $125 for freight on this date.
20
Received $300 credit (including freight) for suitcases returned to Hume Manufacturers.
21
Received payment in full from Kamal .
22
Sold suitcases on account to Desmond’s for $2,250. The cost of suitcases sold was $1,350.
30
Paid Hume Manufacturers in full.
31
Granted Desmond’s $200 credit for suitcases returned costing $120.
Instructions
Journalize the transactions for the month of July for Osman using a perpetual inventory system.
Q.No.5 The following transactions of Kamal Co. for the month of July, 2011
2011
July - 1 Mr. Kamal makes cash investment of Tk. 50,000.
2 Cash sales of merchandise Tk. 30,000 (cost Tk. 25,000)
3 A cheque for Tk. 19,400 is received from B Co. on payment of Tk. 20,000 less 3% discount.
10 Cash sale of merchandise Tk. 27,000 (cost Tk. 20,000)
19 Advance received for future sale Tk. 10,000
20 Cash received by signing a not for Tk. 10,000
24 A cheque for Tk. 24,500 from L Co; full settlement of Tk. 25,000
28 Cash sales Tk. 10,000 (cost Tk. 11,000)
30 Cash Tk. 3,000 received for interest.
Journalize the transactions using perpetual inventory system.
Q.NO-6Noyan enterprise is a merchandise organization. Its credit terms are 3/12, n/30 on all of this sale. During the month
of March ,2014 the following transactions occurred: March 1 Purchase two kinds of goods X and Y of 200 units and 160 units cost TK 12 and TK 20 each
respectively to Exim Co. term 2/10, n/30, FOB destination.
MERCHANDISING JOURNAL( if you complete these maths you will get 10 marks inshallah)
2
Paid TK 200 on March,1 purchase by appropriate party.
4
Purchased supplies TK 2,000 from Turag ltd.
5
Sold product Y of 100 units at Cost plus 20% profit on cost to Libia.
6
Received credit from Exim Co. TK 200 for returned goods.
8
Sold product X of 60 units for cash TK 1200.
10 Paid to Exim Co. as per condition.
12 Purchase product Z of 600 units TK 25 from Uttara Co. term 2/12, n/30, FOB shipping point.
13 Granted credit to Libia Co. TK 48 and scrap value was TK 20.
15 Paid TK 200 on March,12 purchase by appropriate party.
17 Received due amount from Libia Co.
18 Sold product X of 80 units and product Z of 200 units at Cost plus 20% profit on cost to Keya Co.
23 Paid to Uttara Co. full settlement.
Instructions: Journalize the transactions by using perpetual inventory system.
7. Nitol Auto Sales uses a perpetual inventory system. On June1, 2013; the new car inventory records show total
inventory of Tk. 1,44,00,000 consisting of the following—(13)
Model
Units
Unit Cost (Tk.)
P
4
15,00,000
Q
3
16,00,000
R
2
18,00,000
During June the following "Purchase and Sales" were made on account:
June 5 Purchase three "P" cars for Tk. 15,00,000 each.
7 Sold two "P" cars for Tk. 18,20,000 each.
13 Purchased two "R" cars for Tk. 18,00,000 each.
17 Sold one "P" car for Tk. 18,50,000.
20 Purchased two "Q" cars for Tk. 16,00,000 each.
22 Returned one "Q" car purchased on June 20 for Tk. 16,00,000 credit.
24 Sold three "R" cars for Tk. 24,00,000 each.
28 Sold one "Q" car for Tk. 21,00,000.
Required: Journalize the transactions using a perpetual Inventory system
8.The inventory records of SKP Technology Ltd. show the following: -(Mkt-15,pass-13)
January 1 Beginning inventory consists of 24 units costing Tk. 10 per.
2Sold 1.2 units at Tk. 23.50 per.
10 Purchased 40 units at Tk. 12 per.
12 Sold 20 units at Tk. 24 per.
20 Sold 18 units at Tk. 25 per.
25 Purchased 40 units at Tk. 12.50 per.
31 Sold 20 units at Tk. 24 per.
Assume all sales and purchases are made on credit.
Required:
a) Using FIFO perpetual inventory procedure, prepare the appropriate journal entries.
b) Using FIFO perpetual inventory procedure, calculate the cost goods sold for the month of
January.
9.The inventory records of ABC Technology Ltd. show the following: -(pass14)
January 1 Beginning inventory consists of 250 units costing Tk. 10 per.
2Sold 12 units at Tk. 24 per.
10 Purchased 40 units at Tk. 12 per.
12 Sold 20 units at Tk. 24 per.
20 Sold 18 units at Tk. 25 per.
25 Purchased 40 units at Tk. 13 per.
31 Sold 20 units at Tk. 24 per.
Assume all sales and purchases are made on credit.
Required :
a) Using LIFO perpetual inventory procedure, prepare the appropriate journal entries.
b) Using LIFO perpetual inventory procedure, calculate the cost goods sold for the month of
January.
10.The following transactions were collected from the books of Tara Company: -(15)
Dec.1 Purchased merchandise on credit from Taleb Company Tk.1,20,000, FOB Shipping Point, terms
2/10; N/30.
2
Paid freight Tk. 9,000 for December 1 purchase.
4
Retuned merchandise for Tk. 15,000 purchased on December 1.
11
Sold merchandise on credit Tk. 2,20,000, FOB destination, terms 2/10, N/60.
12
Paid transportation charge for December 11 sale Tk. 5,000.
15
Paid the amount owned for December 1.
18
Returned merchandise by customer Tk. 10,000 sold on December 11.
20
Received due in full for December I 1 sales.
Record the transactions in general journal using gross purchase method.