Creditors Allowances Journal
Creditors Allowances Journals are used to record the transactions related to the returns or allowances granted by creditors for previously purchased goods that were found defective, damaged, or unsuitable. When goods are returned to the suppliers or any allowances are claimed, these transactions need to be documented accurately to keep the financial records updated and ensure the liabilities towards creditors are correctly reduced. This helps maintain the accuracy of the Accounts Payable and the inventory records.
Creditors Allowance Journal of Stone Traders for March 20.9
CAJ (1)
|Doc|Day|Creditors|Fol|Creditors Control|Trading Stock| |Stationery|Sundry Accol|5|
|--|--|--|--|--|--|--|--|--|--|
|001|4|Sunshine Traders||2080|2080|-|-|-|-||
|002|12|Sam Distributors||2000|-|-|-|2000|-||
|--|--|--|--|4080|2080|-|-|-|2000|-||
|--|--|--|--|-|-|-|-|-|-|
### Explanation of the Table Entries:
1. Document Number (Doc):
- Each transaction is assigned a unique document number for identification purposes. Here, we have Doc numbers 001 and 002.
2. Day:
- This column indicates the day of the month the transaction occurred. For Sunshine Traders, the transaction occurred on the 4th day and for Sam Distributors, it was on the 12th day.
3. Creditors:
- This column names the creditors involved in the transactions. In this example, the creditors are Sunshine Traders and Sam Distributors.
4. Creditors Control:
- During the return or allowance, the amount to be credited is recorded under this column. Sunshine Traders received an allowance of 2080 and Sam Distributors received an allowance of 2000. The sum of these allowances totals 4080.
5. Trading Stock:
- This column records the value of goods returned to the creditor if it impacts the inventory. Here, Sunshine Traders had goods worth 2080 returned impacting the trading stock, while Sam Distributors did not have any inventory-related allowance. The total impact on trading stock is thus 2080.
6. Stationery:
- This column is left blank for these transactions as there are no related entries.
7. Sundry Accol:
- Specific items affecting Sundry Accounts are documented here. For Sam Distributors, an allowance of 2000 is noted in this column. There is no impact noted for Sunshine Traders in this regard. The total sum for the Sundry Accol column is 2000.
### Totals:
- Total Creditors Control: 4080
- Total Trading Stock: 2080
- Total Sundry Accol: 2000
This journal helps Stone Traders keep accurate records of their transactions involving creditor allowances to maintain clarity and accuracy in their financial statements.
