Preparation of Subsidiary Books - SS1 Accounting Lesson Note
Given the transactions below, we are to prepare subsidiary books for the SAMIE CO. period of January 31. 2023. This example will include the reason for recording transactions in their respective subsidiary book.
January 8. 2023
-
Returned goods worth ₦1500 to XYZ supplier due to the wrong size of shoes received.
Jane Smith returned goods worth ₦1000 due to receiving the wrong colour of the dress.
Paid ₦2000 to XYZ supplier through a cheque.
January 13. 2023
-
John Bamidele returned goods worth ₦500 to due to the wrong size of shoes received.
Made a sale of dresses to John Bamidele on credit for ₦1500.
Made a sale of shoes to ABC Company on credit for ₦2000.
Received ₦1000 as a donation from a customer. This amount was credited to the donation account.
Purchased dresses on credit from supplier for ₦2000.
January 25. 2023
-
Returned goods worth ₦800 to Dove supplier due to the damaged condition of goods.
Purchased dresses on credit from XYZ supplier for ₦2000.
January 31. 2023
-
Deposited ₦5000 into its bank account.
Purchased shoes on credit from Crown supplier for ₦3000.
Wrote off a bad debt of ₦500 from the account of a customer who had become bankrupt
Answer:
Sales Day Book
For the month of January 2023
|
Date |
Particulars
Amount (₦)
08/01/2023
John Bamidele
1500
08/01/2023
ABC Company
200
Total sales for the month credited to the sales account
3500
Transactions fall in the Sales Book as they record the credit sales made by Samie Co.
Purchases Day Book
For the month of January 2023
|
Date |
Particulars
Amount (₦)
25/01/2023
XYZ supplier
2000
31/01/2023
Crown supplier
3000
Total purchases for the month transferred to the purchases account
3500
Transactions fall in the Purchase Book as they record the credit purchases made by Samie Co.
Return Inwards Book
For the month of January 2023
|
Date |
Particulars
Amount (₦)
08/01/2023
Jane Smith
1000
13/01/2023
John Bamidele
500
Total return inwards for the monthly debit to return inwards account
1500
Transactions fall in the Return Inward Journal as it records the return of goods by customers to Samie Co.
Return Outwards Book
For the month of January 2023
|
Date |
Particulars
Amount (₦)
08/01/2023
XYZ supplier
800
25/01/2023
Dove supplier
1500
Total return inwards for the month transfer to return inwards account
2300
Transactions fall in the Return Outward Journal as it records the return of goods by Samie Co. to suppliers.
Bank Book
For the month of January 2023
|
Date |
Particulars
Debit
Credit
08/01/2023
Bank
5000
31/01/2023
Bad debt account
2000
Total bank payments for the month transferred to the bank book account
Transactions fall in the Bank Book as it records the bank transactions made by Samie Co. such as deposits and payments by cheque.
Journal Proper
For the month of January 2023
|
Date |
Particulars
Debit
Credit
13/01/2023
Donation account
1000
31/01/2023
Bad debt account
500
Recording of opening entries for respective accounts
The transaction falls in the Journal Proper as it records a transaction that cannot be recorded in any other subsidiary book.