Archive about 'Bookkeeping to Trial Balance'

Types of Subsidiary Book -The Cash Receipts Journal

The Cash Receipts Journal

This Journal records all cash RECEIVED. The sources of information required to write up this Journal are as follow:

duplicate receipts for amounts received from debtors
daily cash sale sheets
bank statement for items such as deposits made direct into the bank by customers and interest on investments collected by bank and credited to [...]

Types of Subsidiary Book -The Cash Payments Journal

The Cash Payment Journal

This Journal records all CASH PAYMENTS. The sources of information required to write up this Journal are as follow:

cheque stubs for all payments made by cheque
bank statement for items such as bank charges, dishonored cheques and interest on bank overdraft

A typical Cash Payment Journal format is as follows:

Date

Particulars

Cheque
No

Folio
No

Purchases
Discount

Cash
Purchases

Trade
Creditors

Sundry
Payments

Bank

(a)

(b)

©

(d)

(e)

(f)

(g)

(h)

(i)

Column:-
(a) date of payment
(b) [...]

Types of Subsidiary Book -The Purchase Journal

The Purchase Journal

This Journal records all purchases on CREDIT. The book is written up from the actual invoices received from trade suppliers.
Purchase Journal as follows:

Date

Invoice No

Particulars

Folio No

Details($)

Monthly Total($)

2007

Jan 1

72306

Supplier A

PL 8

190.00

20

42315

Supplier B

PL 11

150.00

31

42327

Supplier C

PL 15

450.00

$790.00
======

When the Purchase Journal is written up, the various amounts would then be posted to the credit side of the [...]

Types of Subsidiary Book -The Sales Journal

The Sales Journal

This Journal records all sales on CREDIT. The book is written up from the duplicate of sales invoices. It contains only credit sales related to the goods originally bought for resale.
Sales Journal as follows:

Date

Invoice No

Particulars

Folio No

Details($)

Monthly Total($)

2007

Jan 1

4230

Mr ABC

SL 8

190.00

20

4231

Mr BCD

SL 11

150.00

31

4232

Mr BDE

SL 15

450.00

 $790.00
======

When the Sales Journal is written up, the various [...]

Type of Subsidiary Book – General Journals

Some of the advantages in using Journals are as follows:

transactions which occur infrequently and adjustments necessary at the close of an accounting period require evidence as a basis of recording. Journal vouchers are used to support such transactions and by being signed by responsible officials, they constitute entries for the General Journal. It is therefore [...]

Types Of Subsidiary Book-The Sales Journal

The Sales Journal

This Journal records all sales on CREDIT. The book is written up from the duplicate of sales invoices. It contains only credit sales related to the goods originally bought for resale.
Sales Journal as follows:

Date
Invoice No
Particulars
Folio No
Details($)
Monthly Total($)

2007

Jan 1
 4230
Mr ABC
 SL 8
 190.00

    20
 4231
Mr BCD
 SL 11
 150.00

    31
 4232
Mr BDE
 SL 15
 450.00

 $790.00
======

When the Sales Journal is written [...]

Accounting Test Question & Answer BK No 1 On Bookkeeping To Trial Balance

The below questions represent some accounting questions on recording of transactions.
The following multiple-choice practice questions are extracted from Certified Accounting Technician (CAT) Scheme Paper 1 [ Refer Answers at the end of the questions ]
 

Question 1
Hywel purchases goods on credit with a list price of $100. The supplier gives Hywel a trade discount of 15% [...]

Difference Between Carriage Inwards And Carriage Outwards In The Income Statement

Return Inwards:

Goods already sold by the company were returned to the business by the customers sometimes later.

Goods can be defective, not according to specification or damage.

When goods are returned by customers, the company issue a credit note to the customer.

 
Accounting Treatment:
 
Debit: Return Inwards Account
Credit: Customer’s Account
 
In the Income Statement:
Sales XXX
Less: Return inwards (x)
Net Sales YYY
 

Return [...]

Difference Between Returns Inwards And Returns Outwards

Carriage Inwards:

The transport costs of goods received by a company.

Accounting Treatment:

Should be taken up in the Purchases figures as it is part of the cost of the goods being purchased.

Carriage Outwards:

The transport costs of company’s goods to its customers.

Accounting Treatment:

Should be taken up as expenses in the Income Statement.

Types Of Discounts And Accounting Treatment For Discount Allowed and Discount Received

This article explains the difference between Trade and Cash discounts.
Cash discount, which are shown as Discount Allowed and Discount Received with its accounting treatment.

Trade Discount

A manufacturer or trade normally issue a price list of their products at which the customers usually have to pay.
The allowance given from the list price is called trade discount.
When a [...]