Subsidiary Book: Long Question and Solution

Arjun EP

Published on: October 12, 2020

How to make different books and accounts in subsidiary book?

Step 1, Tick the purchase book, sales book, purchase return book and sales return book separately.

Step 2, Transfer related transactions to concerned book,

Step 3, Find out total of each book separately.

Long answer question of subsidiary book is the exam based problems and solution

It is exam based comprehensive question and solution.

It covers large topic of the chapter.

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

PROBLEM: 6A

The following extracted information is given by SKN Traders:

June 2	Goods purchased from Biddhya Rs 7,000 on credit (invoice No. 221)
June 3	Goods sold to Damodar on credit Rs 12,000 (invoice 151)
June 6	Returned goods Rs 4,000 to Biddhya (debit note No. 441)
June 8	Goods sold to Shankar on credit Rs 20,000 (invoice 152)
June 11	Goods purchased from Salim Rs 12,000 on credit (invoice No. 222)
June 12	Goods sold to Yogita for Rs 8,000 on credit to (invoice No. 153)
June 15	Yogita returned goods worth Rs 2,000 (credit note No. 331)
June 16	Goods purchased from Binay for Rs 16,000 on credit. (invoice No. 223)
June 22	Goods sold to Sarita Rs 15,000 on credit. (invoice No. 154)
June 25	Returned goods to Salim Rs 3,000. (debit note No. 442)
June 28	Shankar returned goods worth Rs 1,500. (credit note No. 332)

Required: All day books

[Answer: Total creditors = 35,000; Total debtors = 55,000;

Purchase return = 7,000; Sales return = 3,500]

SOLUTION:

Purchase Book

Date	Particulars	Invoice No.	LF	Amount
June 2	Purchased form Biddhya	221		7,000
June 11	Purchased form Salim	222		12,000
June 16	Purchased form Binay	223		16,000
	Total creditors			35,000

Sales Book

Date	Particulars	Invoice No.	LF	Amount
June 3	Sold to Damodar	151		12,000
June 8	Sold to Shankar	152		20,000
June 12	Sold to Yogita	153		8,000
June 22	Sold to Sarita	154		15,000
	Total debtors			55,000

Purchase Return Book

Date	Particulars	Invoice No.	LF	Amount
June 6	Purchased returned to Biddhya	441		4,000
June 25	Purchased returned to Salim	442		3,000
	Total debit note			7,000

Sales Return Book

Date	Particulars	Invoice No.	LF	Amount
June 15	Sales returned from Yogita	331		2,000
June 28	Sales returned from Shankar	332		1,500
	Total credit note			3,500

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Click on link for YouTube videos topic wise :
Accounting Equation	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger Account	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance and Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)	http://tiny.cc/jlersz
Accounting Process	http://tiny.cc/mlersz
Accounting for Long Lived Assets	http://tiny.cc/plersz
Analysis of Financial Statement	http://tiny.cc/slersz

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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country

PROBLEM: 6B

The following transactions are related to ABC Electricals:

Jan 1:	Sold to Gupta Electricals:
	5 pieces electric kettle @ Rs 1,500 each
	10 pieces gas heater @ Rs 1,800 each
	Terms: trade discount 12%; payment 5/10, n/50
Jan 5:	Sold to Rana Electricals:
	5 ceiling fans @ Rs 2,000 each (Less: trade discount 5%)
	20 pieces LED 5 watt @ Rs 100 each
	12 pieces bulb holder @ Rs 100 per dozen
Jan 7:	Goods sold to Max Lighting in cash:
	5 ceiling fans @ Rs 1,850 each

Required: (a) Sales book; (b) Sales account; (c) Rana Electrical account (c) Journal entry

[Answer: Sales book = 35,140; Sales account = 44,390]

SOLUTION:

Sales Book

Date	Particulars	Invoice No.	LF	Amount	Amount
Jan 1	Sold to Gupta Electricals:
	5 units electric kettle @ Rs 1,500 each			7,500
	10 units gas heaters @ Rs 1,800			18,000
	Total			25,500
	Less: Trade discount (25,500 @ 12%)			(3,060)	22,440

Jan 5	Sold to Rana Electricals:
	5 ceiling fans @ Rs 2,000 each			10,000
	Less: Trade discount (10,000 @ 5%)			(500)
	20 pieces LED 5 watt @ Rs 100 each			2,000
	12 pieces bulb holder @ Rs 100 per dozen			1,200	12,700
	Total debtors				35,140

Sales Account

Dr							Cr
Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
Jan, 7	To Balance c/d		44,390	Jan, 1	By Gupta Electricals A/c		22,440
				Jan 5	By Rana Electricals A/c		12,700
				Jan 7	By Cash account		9,250
			44,390				44,390

Rana Electric Account

Dr							Cr
Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
Jan, 5	To Sales account		12,700	Jan 5	By balance c/d		12,700

			12,700				12,700

Journal Entries

In the book of ABC Electricals

Date	Particulars		LF	Amount Dr	Amount Cr
Jan 1	Gupta Electricals account	Dr		22,440
	To Sales account				22,440
	(Being- sundry goods sold on credit)
Jan 5	Rana Electrical account	Dr		12,700
	To Sales account				12,700
	(Being- sundry goods sold on credit)
Jan 7	Cash account	Dr		9,250
	To Sales account				9,250
	(Being- goods sold to Max Lighting for cash)

#####

PROBLEM AND ANSWERS

PROBLEM: 6

Following extracted transactions are relating to Shiv Furniture House:

5 Apr:	Purchased from Sagun Furniture:
	20 plastic chairs @ Rs 350 per unit
	5 tea tables @ Rs 2,000 per unit
	2 dining tables @ Rs 12,500 per unit
	Terms: 12% trade discount on order over Rs 50,000; payment 2/15, n/30

15 Apr:	Purchased from Shikhar Furniture by cheque
	4 sofas sets @ Rs 11,000 per set (after 8% cash discount)

25 Apr:	Purchased from Kamana Decorators
	5 computer tables @ Rs 4,500 per unit (trade discount @ 8%)
	2 reading tables @ 3,500 per set

28 Apr:	Laptop purchased for office Rs 45,000