Question: Mr Kipper-Ling runs a business providing equipment for bakeries. He always makes a note of sales and purchases on credit and associated returns, but he is not sure how they should be recorded for the purposes of his accounts. Write up the following credit transactions arising in the first two weeks of August 20X6 into day books and advise Mr Kipper-Ling of the correct double entries assuming that control accounts are maintained as part of the double entry system.
1 August Mrs Bakewell buys $500 worth of cake tins.
1 August Mr Kipper-Ling purchases $2,000 worth of equipment from wholesalers TinPot Ltd.
2 August Mr Kipper-Ling returns goods costing $150 to another supplier, I Cook.
3 August Jack Flap buys $1,200 worth of equipment.
3 August Mrs Bakewell returns $100 worth of the goods supplied to her.
4 August Victoria Sand-Witch buys a new oven for $4,000.
5 August Mr Kipper-Ling purchases $600 worth of baking trays from regular supplier TinTin Ltd.
8 August Mr Kipper-Ling purchases ovens costing $10,000 from Hot Stuff Ltd.
8 August Mr Kipper-Ling returns equipment costing $300 to TinPot Ltd.
9 August Pavel Ova purchases goods costing $2,200.
11 August Mrs Bakewell buys some oven-proof dishes costing $600.