Question
PURCHASE LEDGER You have been appointed as a Purchase Ledger Control Manager for Garry Limited. The core business activities of the company is to sale
PURCHASE LEDGER You have been appointed as a Purchase Ledger Control Manager for Garry Limited. The core business activities of the company is to sale Home Furniture and the business is VAT registered in the United kingdom. Following transactions have took place during the month of January 2018 regarding purchasing of stock items. Date 01/01/2018 Purchased Wooden Wardrobes worth 5,000 on credit from the following entities, the credit limit is 30 days and if the payment is made within 30 days, a discount of 3% of the purchase value will be offered. The amount is inclusive of VAT. Entity Name "Amount " Woodworks Limited 3,000 Woaks Interiors 2,000 01/10/2018 Placed an order for Wooden beds from Woaks Limited at the value of 5,000, the value is inclusive of VAT. 15/01/2018 Made a partial payment of 1,500 to Woodworks Limited and 1,000 to Woaks Limited. 18/01/2018 Recceived Wooden beds from Waoks Limited ordered on 10/01/2018 25/01/2018 Wardrobes worth 1,000 is damaged and returned to Woodworks Limited. 31/01/2018 Create a provision of discount receive at the rate of 2% on the outstanding balances of Woodworks Limited, Woaks Limited. Required: a) Dynasty Limited maintains control accounts for payables in the main ledger, and accounts for individual suppliers / creditors in a payable ledgers. You are required to record journa entries for the above transactions and post them to the Purchases Ledgers, Control Accounts and payables ledgers
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