You are required to make entries in the stock movement books of James Knight.
What to do when preparing the journals below: PURCHASES JOURNAL
a. The four accounts entered will be credited with purchases in the purchases ledger. b. Purchases account in the general ledger must be debited with the total of purchases journal.
RETURNS OUTWARDS JOURNAL
i. The first two accounts will be credited in the purchases ledger. ii. The returns outwards account will be debited with the amount in the general ledger.
i. Three accounts debited in the sales ledger. ii. Sales account will be credited with the total of sales journal in the general ledger.
RETURNS INWARDS JOURNAL
a. The first account will be credited in the sales ledger. b. The second entry represents the credit note sent to the customer. c. The return inwards account will be debited with the amount in the general ledger.