ABC Books is a small bookshop located in the heart of Cape Town. The company
specialises in selling rare and vintage books to collectors and enthusiasts. ABC Books
has a 28 February financial year-end. During January 2023, the company made the
following transactions:

Date Item Action Quantity
1 Jan 2023 To Kill a Mockingbird Purchase 20

10 Jan 2023 To Kill a Mockingbird Return (3)

15 Jan 2023 The Great Gatsby Purchase 15

20 Jan 2023 To Kill a Mockingbird Sale (12)

25 Jan 2023 The Great Gatsby Sale (10)

Details:
• On 1 January 2023, ABC Books purchased 20 copies of "To Kill a Mockingbird" at
a cost of R200 per book, on credit from a supplier.
• On 10 January 2023, ABC Books returned 3 copies of "To Kill a Mockingbird" to
the supplier, as they were found to be damaged.
• On 15 January 2023, ABC Books purchased 15 copies of "The Great Gatsby" at a
cost of R250 per book, in cash from a different supplier.
• On 20 January 2023, ABC Books sold 12 copies of "To Kill a Mockingbird" at a
price of R350 per book, receiving payment in cash.
• On 25 January 2023, ABC Books sold 10 copies of "The Great Gatsby" at a price
of R400 per book, receiving payment in credit.

REQUIRED:
Record the above transactions for ABC Books for the month of January 2023, in the
following general ledger accounts:
• Cost of sales and
• Inventory
Assume ABC Books uses the perpetual recording method to record inventory and
calculates the cost of sales using the first-in-first-out (FIFO) method.
Ignore VAT and tax for this question. Dates are not required. Show all calculations.