UNIT-4 SUBSIDIARY BOOKS 4.1 Need and Uses 4.2 Classifications 4.2.1 Purchase Book 4.2.

2 Sales Book 4.2.3 Purchase return Book 4.2.4 Sales return Book 4.2.5 Journal Proper 4.2.6 Practical Exercises

Subsidiary Books: Subsidiary books are those in which we categorized our transactions on behalf of their nature. Ex- One for credit purchase of goods, one for credit sale of goods, one for credit purchase return and another for credit sales return. In all these we include only credit transaction of every events. Cash transaction of any event will be not entertained in these books. The following subsidiary journal/ subsidiary books have found their place in modern bookkeeping. 1. Purchase Book

2. Sales Book 3. Purchase return Book 4. Sales return Book

1. Purchase Book: This book is kept for the purpose of recording all credit purchases of goods. It is also known as bought book. Cash purchase will not be entered in this book because all entries of cash purchases must have been entered in cashbook. Credit purchase of things , other than goods such as machinery, furniture etc.are journalized they also will not be entered in the purchase book. Only credit purchase of trading goods and materials will be recorded in purchase book.

FORMAT(PURCHASE BOOK)

date Particulars Invoice Ledger No. folio

Details Rs P

Total Rs P

Posting the purchase book: In detail column the amount in respect of each articles is entered. After totaling the various amounts included in a single purchase , the amount of other charges is added. The amount of trade discount will be deducted. The net amount will be recorded in the Amount column.

2. Sales Book:

This Book is just opposite to the purchase book. This

book is kept for the purpose of recording all credit sales of goods. It is also known as day book. only credit sales will be entered in this book. cash sales will not be entered in this because it has been already mention in cash book.

FORMAT(SALES BOOK)

date Particulars Invoice Ledger No. folio

Details Rs P

Total Rs P

In detail column the amount in respect of each articles is entered . after totaling the various amounts included in single sales, the amount of other charges is added. The amount of trade discount will be deducted. The net amount will be recorded in the amount column.

3.Purchase Return Book: The goods returned by the trader to supplier are called purchase return or return outward. A separate book is used to record such return, which is called Purchase return book .

FORMAT (PURCHASE RETUN BOOK)

Date Particulars Note

Debit folio

Ledger Rs

Details P Rs

Total P

The total of the purchase return book shows the total of returns made by the organization. This total is credited to purchase return account with the words By sundries as per purchase return book.

4.Sales Return Book: The goods returned by the customers to the firm are called sales return or return inward. A separate book is used to record this transaction. When the customer return goods a credit note is prepared by the firm in the name of customers and sent its original copy to the customer.

Date

Particulars

Credit Note no.

L.F

Details Rs

Amount P