Subsidiary Books.pdf

8/16/2019 Subsidiary Books.pdf

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ZANZIBAR COLLEGE OF BUSINESS

EDUCATIONBASIC BOOK-KEEPING

SUBSIDIARY BOOKS


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Date Particulars L.F Amt

Dr

Amt

Cr

This book is kept to record all credit purchases of goods for resale. To beeligible for being recorded in the purchase book ,the goods purchased on creditmust be those in which the firm normally deals. Cash purchases of goods areentered in the CASH BOOK, so these are not recorded in PURCHASES BOOK.This book is also known as Invoice book. The ruling of the purchases book is as

follows :


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Dr

Amt

Cr

In many businesses, a considerable proportion of sales will be made on creditrather than immediate cash. In fact the sales of some businesses will consistentirely of credit sales. For each credit sale, the selling firm will send adocument to the buyer showing full details of the goods sold and the price of

the goods. This document is known as an invoice and to the seller it is known assales invoice. The specimen ruling of sales book is given below :


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Dr

Amt

Cr

This book keeps the records of the returns outward, that is, returnof goods bought. The person returning the goods sends a debit noteto the supplier informing him that he is debiting the latter’s accountwith the amount of goods returned. This book is also known as returnsoutwards books. The specimen is given below :


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Dr

Amt

Cr

Sales return book, also known as return inward book, is kept for recordingreturns inwards, that is, returns of goods sold by us. The trader sends acredit note to the customer informing him that he has credited the latter’saccount with the value of goods returned. The specimen is as follows :


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Debit Note & Credit Note

A debit note is prepared when goods arereturned by the purchaser due to somereason. Two copies of this note are prepared.The original copy is sent to the party to whomgoods are return and the duplicate is kept inthe office.

A credit note is like a debit note. It is sent bythe seller to the purchaser for the goodsreturned by the latter to the former.


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Journal Proper

Journal proper is used for recording onlythose transaction which can not be recordedin any of the other subsidiary books examples

of such transaction are Opening entries Transfer Entries

Adjusting Entries Closing Entries Bad debts


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Practical Problems

Question.. From the following transactionprepare the sales return books of rajeshwari tradingcompany:

2002

Jan-1 Prabhaker and co. returned 50 bags of rice,the rate of which is rupees 550 per bagJan-2 Raja and co. return 40 bags of sugar the rateof which is rupees 750 per bag

Jan-10 Subhash and sons returned 10 tons of groundoil, the rate of which is rupees 600 per tonJan-20 Ugandhar returned goods worth rupees 400


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Date Credit

note No.

Particulars L.F Amt.

2002

Jan-1

Jan-2

Jan-10

Jan-20

1

2

3

4

Prabhaker and co :

50 bags of rice @ Rs. 550 per bag.

Raja and co :

40 bags of sugar @ Rs. 750 per bag

Subhash and sons10 tons of ground nut oil @ Rs. 660 per ton

Ugandhar

Sales return account Dr.

27,500

30,000

6,000

400

63,900


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Illustration 2

Enter the following transactions in proper Subsidiary Books and post the

same in the relevant ledger accounts.

2013 Tzs

Aug. 1 Bought goods from Ganga 25,000

Aug. 2 Sold goods to Kaveri 15,000

Aug. 5 Yamuna sold goods to us 15,000

Aug. 8 Krishna purchased goods from us 12,000

Aug. 11 Received goods returned by Kaveri 1,500

Aug. 13 Returned goods to Ganga 1000

Aug. 17 Sold goods to Ponni 8000

Aug. 22 Purchased goods from Sindhu 9000

Aug. 27 Returned goods to Yamuna 1500

Solution:

Purchases Book

Date Particulars L.F. InwardInvoice

Number

Aug. 1

Aug. 5

Aug. 22

Ganga

Yamuna

Sindhu

TZS

25,000

15,000

9000

4 900


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Sales Book

Date Particulars L.F. Outward

Invoice

Number

TZS

2003

Aug. 2

Aug. 8

Aug. 17

Kavari

Krishna

Ponni

15,000

12,000

8000

35,000


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Date Name ofSupplier

L.F. DebitNote

TZS

2013

Aug. 13

Aug. 27

Ganga

Yamuna

1,000

1,500

2,500

Purchases Returns Books


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Sales Returns Book

Date Name of

Customer

L.F. Credit

Note

TZS

2003

Aug. 11 Kaveri 1500

1500


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Subsidiary Books.pdf

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