Lesson Notes By Weeks and Term - Senior Secondary School 1
SUBSIDIARY BOOKS
SUBSIDIARY BOOKS
SUBJECT: FINANCIAL ACCOUNTING
CLASS: SS 1
DATE:
TERM: 1st TERM
TOPIC: SUBSIDIARY BOOKS
CONTENT
NOTES
Subsidiary books are the books of prime entry (or books of original entry) into which transactions are first recorded in details before they are posted in totals into the Ledger.
Businesses use subsidiary books to record goods sold on credit, goods purchased on credit, sales returns, purchases returns etc. The subsidiary books are basically listing devices, which means that a lot of detail is removed from the ledger. It also means that bookkeeping can be divided between several people. The name book of original (or prime) entry has arisen because all transactions should be recorded in one of these books before they are entered in the ledger.
The subsidiary books are:
Uses of the Subsidiary Books
Uses of the General Journal
EVALUATION
Illustration
April 1 Started business with N25, 000 cash
“ 2 Put N18, 000 of the cash into a bank account
“ 5 Purchased from Co-operative Stores –
15 drums of groundnut oil at N20, 400 each
12 bags of garri at N3, 500 each.
Invoice subject to 10% trade discount
“ 8 Sold to T. Okediran –
8 drums of groundnut oil at N24, 000 each.
Less 5% trade discount,
4 bags of garri at N4, 250 each
200 yams at N450 each
“ 9 Returned to Co-operative Stores –
3 drums of groundnut oil bought on 5th April, 2016.
“ 10 Bought from Oyesile & Sons –
650 yams at N380 each,
32 bags of onions at N12, 500 per bag,
60 bags of Dangote 50kg iodized salt at N3, 200 per bag.
“ 12 Paid Co-operative Stores N65, 700 cheque on account
“ 15 T. Okediran returned 3 drums of groundnut oil bought on the 8th of April, 2016.
“ 18 Sold 320 yams at N550 each for cash
“ 19 Bought from Ayodele & Co –
45 bags of onions at N12, 000 each,
50 cartons of Gino Tomato Paste at N14, 000 per carton,
20 drums of palm oil at N3, 800 per drum,
Invoice subject to 15% trade discount.
“ 21 Returned to Ayodele & Co –
8 cartons of Gino Tomato Paste and 5 drums of palm oil bought on the 19th April, 2016.
“ 22 Sold to Adjei Balama –
16 drums of palm oil at N4, 500 per drum,
20 bags of onions at N14, 000 each,
120 yams at N600 each,
Invoice subject to 5% trade discount
“ 25 Paid sundry expenses N8, 400 by cheque
“ 26 Paid rent of shop N15, 000 cash
“ 27 Adjei Balama returned 5 drums of palm oil to us because they were damaged
“ 29 T. Okediran paid by cheque for all the sales made to him.
“ 30 Bought weighing machine from Standard Tools Ltd on credit N62, 000
You are required to record the above transactions in the appropriate books of original entry.
(a)
Cash Book
Cash Bank Cash Bank
2016 N N 2016 N N
April 1Capital 25,000 April 2Bank c18,000
“ 2 Cash c 18,000 “12 Co-operative stores 65, 700
“ 18 Sales 176, 000 25 Sundry Expenses 8, 400
“ 29 T, Okediran 221, 000“ 26 Rent 15, 000
“30 Balance c/d 168,000 164, 900
201, 000 239, 000 201, 000 239, 000
May 1 Balance b/d 168, 000 164, 900
(b)
Purchases Journal
Date Narration Details Total
2016 N N
April 5 Co-operative stores –
15 drums of groundnut oil at N20, 400 each 306, 000
12 bags of garri at N3, 500 each 42, 000
348, 000
Less 10% trade discount 34, 800 313, 200
April 10 Oyesile & Sons –
650 yams at N380 each 247, 000
32 bags of onions at N12, 500 per bag 400, 000
60 bags of Dangote 50kg iodized salt at N3, 200 per bag 192, 000 839, 000
April 19 Ayodele & Co. –
45 bags of onions at N12, 000 each 540, 000
50 cartons of Gino Tomato Paste at N14, 000 per carton 700, 000
20 drums of palm oil at N3, 800 per drum 76, 000
1, 316, 000
Less 15% trade discount 197, 400 1, 118, 600
Total Transferred to Purchases Account in the General Ledger 2, 270, 800
(c)
Sales Journal
Date Narration Details Total
2016 N N
April 8 T. Okediran
8 drums of groundnut oil at N24, 000 each 192, 000
Less 5% trade discount 9, 600
182, 400
4 bags of garri at N4, 250 each 17, 000
200 yams at N450 each 90, 000 289, 400
April 22 Adjei Balama -
16 drums of palm oil at N4, 500 per drum 72, 000 20 bags of onions at N14, 000 each 280, 000
120 yams at N600 each 72, 000
424, 000
Less 5% trade discount 21, 200 402, 800
Total Transferred to Sales Account in the General Ledger 692,200
(d)
Returns Outwards Journal
Date Narration Details Total
2016 N N
April 6 Co-operative Stores -
3 drums of groundnut oil at N20, 400 each 61, 200
Less 10% trade discount 6, 120 55, 080
April 21 Ayodele & Co. -
8 Cartons of Gino Tomato Paste at N14, 000 per carton 112, 000 5 drums of palm oil at N3, 800 per drum 19, 000
131, 000
Less 15% trade discount 19, 650 111, 350
Total Transferred to Returns Outwards Account in the 166, 430
General Ledger
(e)
Returns Inwards Journal
Date Narration Details Total
2016 N N
April 15 T. Okediran –
3 drums of groundnut oil at N24, 000 each 72, 000
Less 5% trade discount 3, 600 68, 400
April 27 Adjei Balama –
5 drums of palm oil at N4, 500 per drum 22, 500 Less 5% trade discount 1, 125 21, 375
Total Transferred to Returns Inwards Account in the 89, 775
General Ledger
(f)
General Journal
Date Narration Dr Cr
2016 N N
April 30 Equipment Account 62, 000
Standard Tools Ltd 62, 000
Being cost of weighing machine bought on credit
EVALUATION
(a) Sales Journal (b) Purchases Returns Journal (c) Petty Cash Book
GENERAL EVALUATION QUESTIONS
WEEKEND ASSIGNMENT
THEORY
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