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Solution
5.4
Mr. Senator would be
advised to have
Books of prime entry:
|
Purchases Journal |
Recording all credit purchases of stock for resale |
|
Purchases Returns
Journal |
Recording all purchases returns |
|
Cash Book |
Recording all payments and receipts |
|
General Journal |
Recording all other transactions |
Ledgers:
|
Purchases Ledger |
Contains all the individual creditor/suppliers accounts |
|
General Ledger |
Contains all other accounts |
Mr. Senator does not
require a sales journal, a sales returns journal or a sales ledger as
all sales are for cash.
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