Posted by: kbenoy | May 2, 2012

Financial Records of Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd – Part 1

Today, I am going to look at how to use the financial records of the Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd to understand what was going on in the day-to-day operations of the business. I am hoping to show how the records link together and transactions can be traced through a variety of different books to find different pieces of information.

I am going to start with the Petty Cash System. This may seem a strange place to start but the Petty Cash books give the clearest insight into the daily operations of the business. The image below shows entries in the Individual Petty Cash Book, which would have been kept by a single person to record the expenses they needed to claim back.

Individual Petty Cash Book - D-SSW/2/WDB/3/9

The entries on the left page show the money coming into the Individual Petty Cash account and shows transfers of £20 and £50 from the General Office Petty Cash Book as seen below. The right page shows the money going out of the Individual Petty Cash account and name or a notes to identify the nature of the transaction. More detail on these transactions can be found in the Analysed Petty Cash Book as seen below. 

Analysed Petty Cash Book - D-SSW/2/WDB/3/8

This volume shows analysis and a breakdown of the Petty Cash costs. The transaction marked on the left page corresponds with the information from the Individual Petty Cash account and the breakdown makes it possible to work out the nature of the costs. 

The Analysed Petty Cash book brings together a lot of different information. Towards the bottom of the left page an entry for Butchers Purchases can be seen for £137.45 indicating that Petty Cash was used to pay for some purchases made from Butchers for stock.

The end column is a good example of transactions being posted into a ledger. The column shows the amount paid in wages, also from Petty Cash, with a note below marked NL157. This indicates that the total amount has been posted into the Nominal Ledger on page 157, the Wages account.

Nominal Ledger - D-SSW/2/WDB/3/5

The corresponding entry in the Nominal Ledger on page 157 can be seen with a reference to page 25 in the Analysed Petty Cash Book definitively linking the two entries. The wages account in the Nominal Ledger brings together all the transactions pertaining to a specific account, in this case the wages account. It would have been much easier to view the wages account written up in the Nominal Ledger rather than working through all the figures in the Analysed Petty Cash Book. Less detail is required in the Nominal Ledger account than in the original Petty Cash Book entries.

The details of the transactions were written up neatly in the Analysed Petty Cash Book after being recorded in the General Office Petty Cash Book as seen below. This volume is set out in the usual format with the money paid in on the left and money paid out on the right.

General Office Petty Cash Book - D-SSW/2/WDB/3/7

The first link to make here is between the General Office Petty Cash Book and the Individual Petty Cash Book that we looked at first. On the top right payments for £20 and £50 can be seen with the reference P/C/B. This money was paid out of the General Office Petty Cash account and into the Individual Petty Cash account to cover the expenses incurred.

The payments for wages can also be seen here and would have been written up from this book to the Analysed Petty Cash Book before being posted to the Nominal Ledger.

The Butchers Payments for £137.45 can also be seen listed here before this information was transferred to the Analysed Petty Cash Book. I will continue next week from the Butchers Payments and look at the records of the purchases made by the Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd from local butchers.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: