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SS1: FINANCIAL ACCOUNTING - 1ST TERM

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  1. Introduction to Booking Keeping and Accounting | Week 1
    9 Topics
    |
    1 Quiz
  2. Introduction to Books of Account | Week 2
    5 Topics
    |
    1 Quiz
  3. Subsidiary Books of Account I | Week 3
    4 Topics
    |
    1 Quiz
  4. Subsidiary Books of Account II | Week 4
    4 Topics
    |
    1 Quiz
  5. Principles of Double Entry Book Keeping | Week 5
    1 Topic
    |
    1 Quiz
  6. Cash Book | Week 6
    6 Topics
    |
    1 Quiz
  7. Petty Cash Book | Week 7
    1 Topic
    |
    1 Quiz



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This is a book of original or Prime entries into which credit sales are recorded before posting to the ledgers. In the sales day book, cash transactions must not be recorded.

Note: The total of the sales day book will be transferred to the Credit side of the sales account in the general ledger and personal accounts will be debited.

Nature of the Account:

The sales day book shows the following: Date, Names of Customers, Invoice number, Folio, Details, and Total amount.

Procedures:
(i) Daily credit sales are entered in the book
(ii) Credit sales account ledger with total
(iii) Debit Customers ledger account

Trade Discount:

This is the allowance of the selling price or catalogue price of goods supplied. It is normally given by the manufacturers to the buyers.

Trade discount is a percentage deduction from the retail price of an article therefore, no entry for it should be made in the double-entry records.

Example for Trade Discount:

10 vehicles were purchased by Funke Car Hire Ltd with a 5% trade discount on the list price of $50,000 each.

Total List Price = 10 x 50,000 = $500,000

Total Discount = 5% of 500,000 = $25,000

Final Invoice Price after TD = $500,000 – $25,000 = $475,000

Format of Sales Day Book:

Sales day journal

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