Subsidikdkdkdkdkddkdkdkkddkkdary Books.pptx

kepkkepkwpkpkpcfkpkfc nc c wecomwpdepcm kpkpkpkdcm o p ppl[ ]p; ; ;; ;ekekkekekkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk2ppppppppppppppppppd,,,,,,,,,,,,,,,,,,,,,,,lm111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;lllllllllllllllllllllllllddddddddddddddddddddddlhellooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooookepkkepkwpkpkpcfkpkfc nc c wecomwpdepcm kpkpkpkdcm o p ppl[ ]p; ; ;; ;ekekkekekkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk2ppppppppppppppppppd,,,,,,,,,,,,,,,,,,,,,,,lm111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;lllllllllllllllllllllllllddddddddddddddddddddddlhellooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooookepkkepkwpkpkpcfkpkfc nc c wecomwpdepcm kpkpkpkdcm o p ppl[ ]p; ; ;; ;ekekkekekkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk2ppppppppppppppppppd,,,,,,,,,,,,,,,,,,,,,,,lm111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;lllllllllllllllllllllllllddddddddddddddddddddddlhellooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooookepkkepkwpkpkpcfkpkfc nc c wecomwpdepcm kpkpkpkdcm o p ppl[ ]p; ; ;; ;ekekkekekkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk2ppppppppppppppppppd,,,,,,,,,,,,,,,,,,,,,,,lm111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111;lllllllllllllllllllllllllddddddddddddddddddddddlhellooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooookep

1. Subsidiary Books

2. Subsidiary Books Subsidiary Book Nature of Transactions Recorded Cash Book (Including petty cash book) Cash and Bank Transactions Purchase Book Credit Purchase of goods Sales Book Credit sale of goods Sales return Book Goods Returned by customer Purchase Return Book Goods returned to supplier Bills Receivable book Bills drawn on customers Bills payable Book Bills accepted in favor of suppliers Journal Proper or General Journal Transactions not classified above and for which there is no Special Journal

3. Advantages Division of work More details Specialisation and efficiency Saving of time Availability of information Facility in checking

4. Purchase Book The particulars column (Name of Customer) is meant to record the name of the supplier and name of the articles purchased and the respective quantities. The amount in respect of each article is entered in the details column After totaling the various amounts included in a single purchase, the amount for packing, or other charges is added and the amount for trade discount is deducted. The net amount is entered in the extreme right-hand column. Purchase Book- Golden Rule It should be remembered that ( i ) Cash purchases are not entered in this book since these will be entered in the cash book; and (ii) Credit purchases of things other than goods or materials, such as office furniture or typewriters are journalized - they also are not entered in the Purchases Book.

5. Posting of Purchase Book 1. Posting of individual amount: Individual accounts are daily posted to the credit of suppliers Accounts by writing “By purchase Acount ” in the particulars column. 2. Posting of periodic totals: Periodic totals is posted to debit of purchase account by writing “To Sundries as per Purchase book” in the particulars column.

6. Sales Book Entries in the Sales Book are also made in the same manner as in the Purchase Book The particulars column will record the name of the customers concerned together with particulars and quantities of the goods sold For each item, the amount is entered in the details column; after totalling the amounts for one sale, charges for packing etc ; are added and the trade discount, if any is deducted: the net amount is put in the outer column. The total of this column will show the total credit sales for a period. Golden Rule The Sales Book is a register specially kept to record credit sales of goods dealt in by the rm, cash sales are entered in the Cash Book and not in the Sales Book. Credit sales of things, other than the goods dealt in by the firm are not entered in the Sales Book; they are journalized.

7. Posting The sales Book The names appearing in the Sales Book are of those parties which have received the goods. The accounts of the parties have to be debited with the respective amounts by writing “To Sales A/c”. The total of the Sales Book shows the credit sales made during the period concerned; the amount is credited to the Sales Account by writing “By Sundries as per Sales Book”.

8. Purchase Returns Book All returns of goods are recorded primarily in the Purchase Returns Book. Purchase Returns Book (also known as Return Outward Book/Journal) is one of the subsidiary books which is used for the purpose of recording the returns of merchandise purchased on credit. Neither the return of goods purchased on cash basis nor the returns of any asset other than the merchandise are recorded in Purchase Returns Book. The entries in the purchase returns book are usually, made on the basis of debit notes issued to the suppliers or original credit notes received from the suppliers. When a firm returns some goods to its supplier, it prepares a 'Debit Note' and sends it along with the goods returned. The supplier, in turn, will prepare a 'Credit Note'. The original copy of 'credit note' will be sent to the firm. On receipt, all credit notes should be numbered consecutively and should be filed properly for future reference. Purchase Returns Book is prepared in the same way as purchase book, except that it should, in addition, include a brief description of the reason for the return in the remarks column.

9. Posting of Purchase Returns Book Once credit note issued by supplier on return of goods is received, individual amounts are daily posted to the debit of Suppliers' accounts by writing 'To, Purchase Returns A/c' in the particulars column. The total of Purchase Returns Book shows the total returns made. The periodic total is posted to the debit of Purchase Returns Account by writing 'By Sundries as per Purchase Returns Book', in the particular book.

10. Sales Return If customers frequently return the goods sold to them, it would be convenient to record the returns in a separate book, which is named as the Sales Returns Book or the Returns Inward Book. All goods returned by the customers are primarily recorded in this book. When goods are returned by the customer, a 'Credit Note; is made out in his name. A Credit Note is prepared in duplicate. The original being sent to the customer for his information and record. The duplicate is preserved in the file for future reference. Duplicate credit note provides information for recording in the Sales Returns Book.

11. Posting of Sales return Individual amounts are daily posted to the credit of Customers' Accounts by writing 'By Sales Returns A/C' in particulars column and periodic total is posted to the credit of Sales Returns Account by writing 'To, Sundries as per Sales Returns Book' in particulars column.

12. Journal Proper Those transactions which cannot be recorded in any other subsidiary books such as purchase book, purchase return book, sales book, sales return book, cash book, bills receivable book and bills payable book are recorded in a special book called Journal Proper.

13. From Ram’s Point of View Ram---Debit Note issued ----------------------Akbar ------------Credit Not received----------- Purchase return Sales Return Debit Note Credit Note Akbar A/c Dr Sales Return A/c Dr To Purchase Return To ram A/c