Subsidiary Books/Journals Format

Sales Journal
Date Details Folio Invoice Amount
# $
SL

Purchases Journal
Date Details Folio Invoice Amount
# $
PL

Sales Returns Journal/ Return Inwards Journal

Date Details Folio Credit Amount
Note $
#
SL

Purchases Returns Journal/ Return Outwards Journal

Date Details Folio Debit Amount
Note $
PL

SL: Sales Ledger ; PL: Purchases Ledger

Trade discount: This is a reduction given by the supplier when customers buy goods in bulk or
large quantities.
Example: John bought goods costing $9,000 less 25% trade discount.
Cost of goods $9, 000
Less 25% trade discount(25% x9000) (2, 250)
6, 750
Exercise 19.4
Sales Journal
Date Details Folio Invoice Amount
# $
2017
June 1 K King SL 1 196
June 6 R Jones SL 2 490
June 20 N English SL3 400
June 30 Total GL1 1086
credit
sales

Trade discount calculation:

R Jones- Cost 700
Less trade discount(30% x 700) (210)
490

N English- Cost 500

Less trade discount(20%x500) (100)
400
Return inwards Journal
Date Details Folio Credit Amount
Note# $
2017
June 16 K King SL1 21
June 30 Total GL2 21
return
inwards
Purchases Journal
Date Details Folio Invoice Amount
# $
2017
June 11 E.T. Ltd PL 1 1440
June 30 ARichards PL 2 400
June 30 Total GL3 1840
credit
purchases

Trade discount calculation:

ET Ltd:
Purchases
Cost 1800
Less trade discount (20% x 1800) (360)
1440

Returns: Cost 200

Less trade discount (20% x200) (40)
160
Return outwards Journal
Date Details Folio Debit Amount
Note# $
2017
June 24 E.T.Ltd PL1 160
June 30 Total GL4 160
return
outwards
NB:
 The sales journal and the return inwards journal are used with the sales ledger.
 The purchases journal and return outwards are used with the purchases ledger.
 All journals are used with general ledger.

Sales Ledger

Date Details Foli Amount Date Details Folio Amount

o
2017 2017
K King A/C 1
June 1 Sales SJ1 196 June16 Return inwards RIJ1 21

R Jones A/C 2
June 6 Sales SJ1 490

NEnglish A/C 3
June Sales SJ1 400
20
Purchases Ledger

Date Details Folio Amount Date Details Foli Amount

o
2017 2017
ET Ltd A/C 1
June2 Ret. outwards ROJ1 160 June Purchases PJ1 1440
4 11

ARichards A/C 2
June Purchases PJ1 400
30
General Ledger

Date Details Folio Amount Date Details Folio Amount

2017 2017
Sales A/C 1
June30 Total credit sales SJ1 1 086

Purchases A/C 2
June3 Total credit PJ1 1840
0 purchases

Return A/C
Inwards
Total return RIJ1 21
June3 inwards
0
Return
Outwards A/C
June30 Total return ROJ 160
outwards 1