JOURNALS
Junior Secondary School
Business Studies JSS 1(Basic 7)
Second Term Lesson Notes
Subject :
Business Studies
Term :
SECOND TERM
Week:
Week 11
Class :
JSS 1
Topic :
JOURNALS
Previous lesson :
The pupils have previous knowledge of
that was taught as a topic during the last lesson.
Behavioural objectives :
At the end of the lesson, the pupils should be able to
- Explain the term Return Outward Day Book
- Sate the purpose of Returns Inward Journal?
- Write out what Purchase day book and Sales day book are used for
- Mention the purpose of each journal?
Instructional Materials :
- Wall charts
- Pictures
- Related Online Video
- Flash Cards
Methods of Teaching :
- Class Discussion
- Group Discussion
- Asking Questions
- Explanation
- Role Modelling
- Role Delegation
Reference Materials :
- Scheme of Work
- Online Information
- Textbooks
- Workbooks
- 9 Year Basic Education Curriculum
- Workbooks
Content :
JOURNALS
CONTENT
- Meaning of Journal
- Format of a Journal
- Types of Journal
- Purchase Day Book or Purchases Journal
- Sales Journal
- Returns Outward Day Book and Returns Inward Day Book
Meaning of Journal
A journal is a document which contains the daily records of business transactions. Each record in a journal is called an entry. The journal is called a book of original entry because its entries are transferred to a second book.
Format of a Journal
Date | Particulars | Folio | Invoice No. | Amount | |
Types of Journal
We have two major divisions of Journals: General Journal and Special Journal
General Journal
This is a book that records all transactions (both sales and purchases). It is also used to correct errors made in the books of account. It is used when no special journal exists. It can also be called The Journal.
Format of a General Journal
Date | Particulars | Folio | Invoice No. | Dr. | Cr. | |
Special Journal
It is used to record only one type of entry. Types of Special Journals are listed below:
- Purchases Journal
- Sales Journal
- Return Inward Journal
- Return Outward Journal
In order to keep the general ledger free from unnecessary details, separate journals are kept for credit transactions concerning sales and purchases.
Let’s take each of them one after the other.
Purchase Day Book or Purchases Journal
This is also known as the bought Journal. It is used to record all daily particulars of goods bought for resale on credit. It is maintained exclusively for credit purchases of goods meant for resale. Entries are made in the purchase journal from the purchase invoices issued by the sellers.
Preparation of Purchase Journal
Debit purchase account with the total amount of purchases for the period. Credit the individual seller’s (creditor) account with the net amount.
Example:
Enter these transactions in the purchase journal of Oke & sons for the month of June 2000, and post this to the ledger,
June 15 Ekpe & Co.: Invoice No. 102
15 Dozens of Eraser at 250k a dozen
30 Rulers at 50k each
40 Writing pad at 10k each
200 Envelopes at 15k per 25
Invoice subject to 10% trade discount
June 16 Bought from Ayi Effiom Bookshop invoice No. 37
10 Reams of foolscap at N350 per ream
6 Dozen Exercise books at N12 a dozen
21 B. Allegro, invoice No. ACP 134 N6,500
Subject to 20% trade discount
Oke & Sons
Purchases Journal for the month of June, 2000
Date | Particulars | Invoice | Folio | Detail | Total | ||
June 5 | EKPE & Co. | 102 | L8 | ₦ | ₦ | ||
15 dozen erasers @ 25k a dozen | 37.50 | ||||||
30 rulers @ 50ok each | 15.00 | ||||||
40 writing pads @ 10k each | 4.00 | ||||||
200 envelopes @ 15k per 24 | 120.00 | ||||||
Less 10% trade discount | 176.50 | ||||||
17.65 | 158.85 | ||||||
June 10 | Ayi Effiom Bookshop | 37 | L9 | ||||
10 reams of foolscap @ ₦350 a ream | 3,500.00 | ||||||
6 dozen exercise books @ ₦120 a dozen | 720.00 | 4,220.00 | |||||
June 21 | B. Alogbo | ACP 134 | L10 | ||||
Purchase of goods | 6,500.00 | ||||||
Less 20% trade discount | 1,300.00 | 5,200.00 | |||||
June 30 | Purchase Accounts | Dr | L12 | 9,578.85 |
Sales Journal
This is one of the books of original entry. It is used to record daily sales of goods on credit. The recording of transactions into sales journals is the same as purchase journal except in posting to the ledger. In the ledger, debtors (customers) personal accounts are debited and sales accounts credited in the general ledger with the total amount of credits sales for the period.
Example:
Aneke venture is a dealer is cloth materials. Enter the transaction below in his sales day book.
November 2, 2000
Sold to Ibete $ Sons and issued invoice No. 163
200 Meters of Nylon material at N150 a metre
180 Meters of Silk material at N120 a metre
160 Meters of Travara material at N170 a metre
Invoice is subject to 5% trade discount
November 18, 2000
Sold to Ada & Sons invoice No. 46
7 Nylon shirts at N550 each
11 Singlets at N140 each
2 Dozens handkerchiefs at N115 each
Anieke Venture
Sales Day Book for the Month
Invoice | Folio | Detail | Total | |||
Nov. 2 | IBETE & SONS | 102 | L8 | ₦ | ₦ | |
200 meters of Nylon @ N150 a metre | 30,000 | |||||
180 meters of silk @ N120 a metre | 21,600 | |||||
160 meters of Travara @ N170 a metre | 27,200 | |||||
78,800 | ||||||
Less 10% trade discount | 3,940 | 74,860 | ||||
Nov. 18 | ADA & SONS | 45 | L4 | |||
7 Nylon shirts @N550 each | 3,850 | |||||
11 Singlets @ N140 each | 1,540 | |||||
2 Dozens Handkerchiefs @ N15 | 360 | 5,750 | ||||
Sales Accounts | Cr | 80,610 |
Returns Outward Day Book and Returns Inward Day Book
Returns Outward Day Book
This day book is also called Returns outward Journal or purchases return book. It is used for recording all goods returned to the sellers and allowances granted by them. Entries are made from the credits notes received from the seller. The total amount of the returns and allowances for a period are credited to the returns outwards account in one figure in the ledger while individual items are debited to the personal accounts sellers in the purchase ledger.
Example:
The following returns were made to sellers on the dates shown. Record them in the returns outwards journal.
Oct. 5 Returned 1 carbon of biscuit at N250 to B. Ekpe, Credit Note No. 02/13
Oct. 6 Returned to R. Igwe Note No. 02/44 N500
Oct. 8 Received a note from Obongha & Sons on goods returned, Note No.27 N450
Date | Supplier/Seller | Note No. | Folio | Amount | |
Oct. 5 | B. Ekpe | 02/13 | 7 | ₦250 | |
6 | R. Igwe | 02/24 | 8 | ₦500 | |
8 | Obongha & Sons | 27 | 29 | ₦450 | |
8 | Returns Outwards A/C CR | ₦1,200 |
Returns Inward Day Book
This is also known as sales return book or Returns inward Journal. It is used for recording the particulars of all goods returned by customers and the allowance granted to them. The source document for returns inwards journals is the credit note prepared by the seller who is accepting the goods returned.
Example:
The following returns were made by Ibete & Co customer on the date specified. Record the transactions into the returns inwards journal.
Feb.10 | Eko & Sons, Note No. 17 | ₦100 | |||
Feb.12 | Upla Enterprises Note No. 18 | ₦280 | |||
Feb.16 | Ethothi Ventures Note No. 20 | ₦350 | |||
Date | Name of Customer | Note No. | Folio | Amount | |
Feb. 10 | Eko & Sons | 17 | 3 | ₦100 | |
Feb. 12 | Upla Enterprises | 18 | 7 | ₦280 | |
Feb. 16 | Ethothi Venture | 20 | 10 | ₦350 | |
Feb. 16 | Retuns Inward A/C DR | ₦730 |
Presentation
The topic is presented step by step
Step 1:
The class teacher revises the previous topics
Step 2.
He introduces the new topic
Step 3:
The class teacher allows the pupils to give their own examples and he corrects them when the needs arise
EVALUATION
- What do you understand by the term Purchase day book and Sales day book?
- What is the purpose of each journal?
- Explain the term Return Outward Day Book
- What is the purpose of Returns Inward Journal?
- From the following particulars, prepare purchases day book of Micheal & Co.
Jan. 5
Bought goods from Alabi and Sons
3 Cartons of Biscuit at N450 a carton
2 cartons of Jumbo matches at N350 a carton
The invoice is subject to 5% discount
Jan. 8
Received invoice No. 11 from Tosan Enterprises.
4 dozens of 40 leaves exercise books at N600 a dozen
100 erasers at 5 for N2
20 rulers at N4 each
- Credit sales were made to the under mentioned customers. Record the transaction in the sales journals.
April 5 Fidelis Enterprises, invoice No. 02/8 ₦1,020 April 7 Sholaja & Co., invoice No. 02/12 ₦2,500 April 9 Mayowa , A.A. invoice No. 02/16 ₦1,350 April 10 Usman & Sons, invoice No. 02/20 ₦3,150 April 15 Bolujo invoice No. 02/21 ₦1,235 - A Credit note was received from Onete Ukam by E. Ina. Below is the credit note No. 102:
1 Carton of biscuit at N350 ₦350 25 Empty cases returned at N15 each ₦375 ₦725 You are required to prepare returns outward journal.
- Record the following transactions into the returns inward journal.
June 6 O. Etim, Note No. 41 ₦275 June 8 A. O. Aduquo, Note No. 43 ₦330 June 9 Onda Enterprises, Note No. 44 ₦250 June 11 Owal & Sons, Note No. 46 ₦315
Conclusion
The class teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.
The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she does the necessary corrections when and where the needs arise.