Administer Subsidiary Accounts and Ledgers - Desklib

This report explains the purpose of subsidiary ledger accounts and how to enter supplier bills and payments, customer invoices and receipts, and perform aged receivables and payables calculations. It also includes an aged receivables and payables report and answers questions based on the prepared reports. Subject: Accounting, Course Code: N/A, Course Name: N/A, College/University: N/A

Administer subsidiary
accounts and ledgers

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Enter the suppliers bills and payments........................................................................................3
Entries of Customer Invoices receipts.........................................................................................4
Entries of Customer receipts.......................................................................................................5
Aged Receivables and Aged Payables Report..........................................................................10
Answer the questions on the basis of the prepared reports.......................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
A subsidiary ledger account is very similar to the accounts which are made in the general
ledger accounts. Its purpose it to provide the details and equalise the balance of the specific
ledger accounts. Because the general ledgers only provide the closing balance but it provide the
details from which the result is calculated in the ledgers. It tracks the information of the
transactions such as, accounts receivable and payables (Kuter, and et. al., 2017). In this report,
the bill and payments made to the supplier is made, Customer receipts and invoices. The aged
receivable and payables calculation is performed and an analysis is made on the basis of the
results. The journal entries are also performed on the basis of the adjustments given. The GST
and income tax calculations is also made where needed.
MAIN BODY
Enter the suppliers bills and payments.
A journal book is the day book in which firms are required to record all its transactions
on daily basis and in chronological order. It comprises of all the entries along with the amount in
which that entry took place an a brief narration telling about the description of the accounts. The
values are recorded on the debit and credit side on the basis of the nature of that account
(Sunyaev, 2020).
Journal Entries
In the books of Surf and Skate Ltd.
Date Particulars Debit Credit
04/03/20 General Expenses
Jimmy’s Garden Maintenance
(The general expenses are made for monthly lawn
mowing)
165
165
05/03/20 Advertisement Expenses
Skate Review
(Full page advertisement expenses are made)
610
610
06/03/20 Subscription Expenses
Sun Weekly
275
275

(The annual subscription expenses are being made)
08/03/20 Stock
Convex
(The Long Skate Board Black is purchased as an
inventory of 10 units)
749.9
749.9
08/03/20 Stock
Sun n Surf Supplies
(The invetory of men's and women's blue and gold
swimwear is purchased of different quantity at
different prices)
1914.5
1914.5
10/03/20 Stock
Quicksilver
(The purchase of sunglasses, sack and t-shirt is
stocked with 10, 20 and 5 quantities)
495.65
494.65
10/03/20 Stock
Hang 10
(The short and long surf is purchased as inventory
of 5 quantity)
1199.5
1199.5
15/03/20 Office Equipment
Office Worx
(The HP Printer is purchase for office use)
198
198
Entries of Customer Invoices receipts.
Date Particulars Debit Credit
15/11/19 Janine Westaway
Sales
(The sales of Long surg board is done)
299..99
299.99
05/01/20 Bells Surf Club 1299.95

Sales
The Sales of Short Surf was made of 5 units)
1299.95
03/03/20 Craydon community Centre
Sales
(The sales of multicolour hacky sack was made of
20 quantities)
399.8
399.8
05/03/20 Iman Khan
Sales
(10 surfing lessons were sold)
1100
1100
10/03/20 Roald O'Connor
Sales
(Special order of stakeboard were sold of 1
quantity)
200
200
15/03/20 Ringwood Sports Centre
Sales
(Stakeboard workshop was sold to Ringwood
Sports Centre)
500
500
25/03/20 Bell Surf Club
Sales
(Men Blue Swimwear was sold of 20 units at
$59.99 each)
1199.8
1199.8
25/03/20 Jasmine Jophur
Sales
(The black and blue sunglasses were sold to
jasmine Jophur)
39.99
39.99
27/03/20 Marty McMahon
Sales
(Men Surf tshirt was sold of 2 units at each of
$89.99)
179.98
179.98

Entries of Customer receipts.
Date Particulars Debit Credit
03/03/20 Bank
Craydon community Centre
(The sales of multicolour hacky sack was made of
20 quantities)
399.8
399.8
05/03/20 Bank
Iman khan
(10 surfing lessons were sold)
1100
1100
10/03/20 Cash
Roald O'Connor
(Special order of stakeboard were sold of 1
quantity)
200
200
15/03/20 Bank
Ringwood Sports Centre
(Stakeboard workshop was sold to Ringwood
Sports Centre)
500
500
Accounts Payable subsidiary ledger of Surf and Stake Ltd.
Date Item Reference Debit Credit Balance
Credit
Jimmy's Garden Maintenance
04/03/20 General Expenses '00597 165 165
Skate Review
05/03/20 Advertisement Expenses SR49 610 610
Sun Weekly

06/03/20 Subscription Expenses 23/11/21 275 275
Convex
08/03/20 Stock Con011 749.9 749.9
Sun n Surf Supplies
08/03/20 Stock SS36 1914.5 1914.5
Quicksilver
10/03/20 Stock QS310 495.65 495.65
Hang 10
10/03/20 Stock HT450 1199.5 1199.5
Office Worx
15/03/20 Office equipment OW101 198 198
Accounts receivable subsidiary ledger of Surf and Stake Ltd.
Date Item Reference Debit Credit Balance
Debit
Janine Westaway
15/11/19 Sales 299.9 299.9
Bells Surf Club
05/01/20
25/03/20
Sales
Sales
1299.5
1199.8
2499.3
Craydon community Centre
03/03/20 Sales
Bank 399.8
399.8 0
Iman Khan

05/03/20 Sales
Bank 1100
1100 0
Roald O'Connor
10/03/20 Sales
cash 200
200 0
Ringwood Sports Centre
15/03/20 Sales
Bank 500
500 0
Jasmine Jophur
25/03/20 Sales 39.99 39.99
Marty McMahon
27/03/20 Sales 179.98 179.98
Ledger refers to the collection of all the accounts which keeps a record of all the similar
transactions in a single format. It is used to ascertain the end balances of all the entities of a
business. All the accounts posted in it have some opening balances which are carried forward
from previous year balances and a closing balance which are carried forward to next year (Uyar,
2019).
LEDGER
In the books of Surf and Stake Ltd.
General Expenses Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
04/03/20 Jimmy Garden
Maintenance
165 31/03/20 Balance c/d 165
165 165
Advertisement Expenses Account

Dr. Cr.
Date Particulars Amount Date Particulars Amount
05/03/20 Skate Review 610 31/03/20 Balance c/d 610
610 610
Subscription Expenses Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
06/03/20 Sun Weekly 275 31/03/20 Balance c/d 275
275 275
Stock Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
08/03/20 Convex 749.9 31/03/20 Balance c/d 4359.55
08/03/20 Sun n Surf Supplies 1914.5
10/03/20 Quicksilver 495.65
10/03/20 Hang 10 1199.5
4359.55 4359.55
Office Equipment Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
15/03/20 Office Worx 198 31/03/20 Balance c/d 198
198 198
Sales Account

Dr. Cr.
Date Particulars Amount Date Particulars Amount
31/03/20 Balance c/d 4919.52 15/11/19 Janine Westaway 299..99
05/01/20 Bells Surf Club 1299.95
03/03/20 Craydon community
Centre
399.8
05/03/20 Iman Khan 1100
10/03/20 Roald O'Connor 200
15/03/20 Ringwood Sports
Centre
500
25/03/20 Bell Surf Club 1199.8
25/03/20 Jasmine Jophur 39.99
27/03/20 Marty McMahon 179.98
4919.52 4919.52
Bank Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
03/03/20 Craydon community
Centre
399.8 31/03/20 Balance c/d 1999.8
05/03/20 Iman khan 1100
15/03/20 Ringwood Sports
Centre
500
1999.8 1999.8
Cash Account
Dr. Cr.

Date Particulars Amount Date Particulars Amount
10/03/20 Roald O'Connor 200 31/03/20 Balance c/d 200
200 200
Aged Receivables and Aged Payables Report
Aging of these accounts refers to the process of the time period in which the amount to be
received or paid will become outstanding. In case of receivables it tells the time period in which
the figure will stand to be received from the debtors. While on the other hand, the aging report of
payables shows the duration after which the firm will be obliged to pay to its creditors. These
reports are very important as they helps in differentiating all the debtors and creditors on the
basis of their priority, which further helps in identifying the individuals who should be paid first
according the dead line (Yang, 2021).
Ages Payable report of Surf and stake Ltd.
Current 1 – 30 days 30 – 60 days Total
Jimmy's Garden Maintenance 165 165
Skate Review 610 610
Sun Weekly 275 275
Convex McMahon 749.9 749.9
Sun n Surf Supplies 1914.5 1914.5
Quicksilver 495.65 495.65
Hang 10 1199.5 1199.5
Office Worx 198 198
Ages Receivable report of Surf and stake Ltd.
Current 1 – 30 days 30 – 60 days Total
Janine Westaway 299.9 299.9

Bells Surf Club 1299.5 1199.8 2499.3
Jasmine Jophur 39.99 39.99
Marty McMahon 89.99 89.99
Answer the questions on the basis of the prepared reports.
1. With the help of Aged receivable report, list the debtors who will be required to be
followed up as a result of customers having exceeded their credit terms.
As per the data, there are not any debtor who has exceeded its limit of payment. Their are three
parties who will be payable in the very beginning of the coming month and following year which
is April of next financial year. Currently, they can enjoy the relaxation period. But there are two
debtors belonging to the prior year of 2019 who have still not clear their debts even after the
completion of one whole year. They are Janine Westaway and Bells Surf Club. Out of them, the
company is still dealing with the later one. But there is no dealing with the former party from the
last whole year. So, there is an urgent need of following up with these customers, specially the
Janine Westaway. It is also requires to talk with Bells Surf Club for making sure that they are
declared to be bad debt in future.
2. In case any of the account is uncollectable then what action is required to be taken in
Xero.
Whenever any amount to be received is viewed that it cannot be collected from the party due to
any reason, it can be unavailability of that person or when it is not able to pay the debt, then in
that situation that account is deemed to be uncollectable. Such accounts are then declared to be
as bad debt and the account of that person is then closed by passing an opposite entry. At the
time of selling goods of credit, the party purchasing the goods is debited. But when declared as
bad debt, that person is credited with that balance amount due from it.
Whenever a receivable is declared as bad debt, then it is required to write off invoice of that
individual by issuing a credit note along will settling its account.
Following are the steps that are required to be taken for showing the treatment of uncollectable
receivables in Xero..
1. At first, search for the invoice that is required to be written off.
2. After that, in the invoice options, select the option of Add Credit Note.

3. Then, in the account field, select the account code, same as mentioned in the invoice
or in place of that bad debt accounts can be selected.
4. Make this thing sure that all the amounts, date, tax rates all are mentioned correctly
under it.
5. After rechecking all the figures, click approve.
This is the manner of writing off bad debts in Xero.
3. After analysing, all the overdue invoices, record Bad debt of the oldest invoice in Xero.
Also record the Credit Note as on 31st March 2020.
Journal Entries of Bad debt
In the books of Surf and Skate Ltd.
Date Particulars Debit Credit
31/11/19 Bad debts
Janine Westaway
(The account receivable is declared to be
uncollectable)
299..99
299.99
Credit note
Credit to: Surf and Skate Ltd.
Janine Westaway
Order Reference Credit Note No.
Credit Date: 31/11/19
Description Qty Unit Price Amount
Credit Note raised against the Long surf Board – yellow,
declared as bad debt
Lsub - Yellow 1 299.99 299.99
Credit Total 299.99

CONCLUSION
From the above analysis, it can be concluded that it is very important to record each and
every transaction in the books of accounts. It gives complete knowledge about all the financial
activities taking place in the business. It also provides information about the time period in which
the money is payable to others and receivables from others. The data collocated from aging
reports helps the companies in determining the defaulters who have not paid money even after
the expiry of allotted time period. This further assists in following up with such parties and
making them to clear their accounts. The accounts which cannot be settled are declared as bad
debts. Accounts of these persons are required to be written off along with issuing a credit note on
the name of the concerned party. Their are various other subsidiary books like payables which
helps in reminding the time at which payments are required to be made. But this should be kept
in mind that recordings in these books are done properly.

REFERENCES
Books and Journals
Kuter, M. and et. al., 2017, December. The virtual reconstruction of the earliest double-entry
accounting ledger. In International Conference on Information Technology Science (pp.
169-184). Springer, Cham.
Sunyaev, A., 2020. Distributed ledger technology. In Internet Computing (pp. 265-299).
Springer, Cham.
Uyar, M., 2019. Adoption of Accounting Information Systems in Businesses. In Structural
Equation Modeling Approaches to E-Service Adoption (pp. 101-124). IGI Global.
Yang, W., 2021. Computer Financial Accounting Information System for International Trade
Enterprises. In 2020 International Conference on Data Processing Techniques and
Applications for Cyber-Physical Systems (pp. 855-863). Springer, Singapore.