Posted by: kbenoy | May 23, 2012

Financial Records of Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd – Part 3

Last time, I looked at the records kept by the Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd of their purchases. Today, I am going to look at the records they kept of the sales they made.

The first record to look at is the Sales Account Book (D-SSW/2/WDB/3/15), which includes accounts for each company who made purchases from the Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd. The accounts are in alphabetical order with a reference for each company made up of the first letter of their name and the next number in the sequence. The account shown below is for Boons A. B. P. (Animal By Products) and their reference is B. 3.

Sales Account Book – D-SSW/2/WDB/3/15

The page for each account has two columns. The left side is for debits and shows the payment of 6-15-0 into the account by Boons A. B. P. in exchange for goods purchased. This entry is linked to page 1 in the Sales Analysis Book, which shows more details about the nature of sale. The right side is for credits and shows the same payment being transferred out of the account and into the General Cash Book on page 187.

The record shown below is the corresponding page in the Sales Analysis Book (D-SSW/2/WDB/3/13). Similar to the Loose Purchase Records, this book shows analysis of the sale. In this case, Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd sold a quantity of 1522 bones to Boons A. B. P. for a total of 6-15-0 as shown in the column for Sheepskins Fat and Bones.

Sales Analysis Book – D-SSW/2/WDB/3/13

The Sales Analysis Book gives the details of the transaction required to keep track of stock and sales rather than just the financial record of the sale as shown in the Sales Account Book.

The page shown below is from the General Cash Book (D-SSW/2/WDB/3/1) and as with the Sales Account Book has a debit column on the left and a credit column on the right page (not shown here). This cash book shows the entry that was in the credit column of the Sales Account Book that has been transferred to the debit column of the General Cash Book.

General Cash Book – D-SSW/2/WDB/3/1

The transaction has to be recorded twice for the purposes of double entry bookkeeping, where the effect of the transaction on the assets or stock has to be recorded and the effect of the transaction on the business and its finance also has to be recorded. The effect on the assets in this example is recorded in the Sales Account Book as a credit as stock has left the account. The effect on the business and its finance is recorded in the General Cash Book as a debit as the money has come into the account to pay for the sold stock.

The image below shows an entry on the right hand page of the General Cash Book for the purchase by the Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd of 20 Rugs from Bradford Trading. It is on the credit side of the Cash Book as it shows the value leaving the account to pay for the rugs.

General Cash Book – D-SSW/2/WDB/3/1

This entry is marked NL29 indicating that the transaction is recorded on page 29 of the Nominal Ledger (D-SSW/2/WDB/3/5) as shown below. The transaction is recorded in the Retail Purchases account in the Nominal Ledger on the debit side to show the increase in assets in the form of 20 rugs.

Nominal Ledger – D-SSW/2/WDB/3/5

I hope this makes sense. Double Entry Bookkeeping is a complicated system to try to explain but I hope the images of real records have helped to show some of the working. This entry is the last in the series on the financial records of the Wolverhampton & District Butchers Hide Skin Fat & Wool Co Ltd.

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