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.