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SUBSIDAIRY BOOKS
BY SHIVPRASAD VENGURLEKAR




                            By PresenterMedia.com
TYPES OF SUBSIDAIRY BOOKS
•PURCHASE  BOOK
•PURCHASE RETURN BOOK

•SALES BOOK

•SALES RETURN BOOK
•PURCHASE BOOK
MEANING & PURPOSE
Purchases book or purchases day book is
 a book of original entry maintained
 to record credit purchases. You must note that
 cash purchases will not be entered in
 purchases day book because entries in respect
 of cash purchases must have been entered in
 the cash book. At the end of each month, the
 purchases book is totaled. The total shows
 the total amount of goods purchased on
 credit. Purchases book is written up daily
 from the invoices received. The invoices are
 consecutively numbered. The invoice of each
 number is noted in the purchases book.
FORMAT
The following is the format of purchases day book:
  DATE    NAME OF SUPPLIER    INVOICE   L. F. AMOUNT
                              NO.
RULING
It is not ruled like the ordinary journal. The first column in this
book is for date. In the second column, the name of the
supplier or the seller, quantity of each article bought,
description of the article, rate etc., are recorded. Sometimes a
separate column to record the details of the transactions is
added in the purchases day book. The third column is for
invoice number. The fourth column is for ledger folio. The last
column gives the total amount due to the supplier.
POSTING
The total of the purchases book is posted to the debit of
purchases account. Names of the suppliers appear in the
purchases book. These parties have supplied the goods.
They are, therefore, credited with the amount appearing
against their respective names. The double entry will thus
be completed.
•
Sales Day Book
 MEANING and PURPOSE

A sales book is also known
 as sales day book. It is a book of
 original entry in which the details of
 credit sales are recorded by a
 businessman. Total of sales
 book shows the total credit sales of
 goods during the period concerned.
 Usually the sales book is totaled
 every month. The sales day book is
 written up daily from the copies of
 invoices sent out.
FORMAT
FOLLOWING IS THE FORMAT OF SALES BOOK
DATE   NAME OF THE CUSTOMERS   INVOICE L.F.   AMOUNT
                               NO.
RULING
It is ruled like purchase book. The first column in this book
is for date. In the second column, the name of the
customer or the buyer, quantity of each article bought,
description of the article, rate etc., are recorded.
Sometimes a separate column to record the details of the
transactions is added in the purchases day book. The third
column is for invoice number. The fourth column is for
ledger folio. The last column gives the total amount due
from the customer.
POSTING
The total of the sales book is credited
to sales account. Customers whose names appear
in the sales book are debited with the amount
appearing against their names. Double entry is
thus completed.
•PURCHASE RETURN BOOK
MEANING & PURPOSE
•   Purchases returns book is a book in
    which the goods returned to suppliers
    are recorded. It is also called returns
    outward book or purchases returns day
    book. Goods may be returned because
    they are of the wrong kind or not up
    to sample or because they are damaged
    etc. The ruling of this book is absolutely
    the same as of purchases day book.
FORMAT
FOLLOWING IS THE FORMAT OF PURCHASE RETURN BOOK
DATE   NAME OF THE CUSTOMERS   DEBIT   L.F.   AMOUNT
                               NOTE
DEBIT NOTE
When the goods are returned to the suppliers, an intimation is
sent to them through what is known as a debit note. These
debit notes serve as vouchers for these entries. A debit note is
a statement sent by a businessman to another person,
showing the amount debited to the account of the later. Debit
notes are usually serially numbered and are prepared in the
same form as that of the invoice.
POSTING
The total of the purchases returns or returns
outwards book is credited to returns outward
account or purchases return account (being the
goods sent out). Individual suppliers to whom
goods are returned are debited (because they
receive the goods).
•SALES RETURN BOOK
MEANING & PURPOSE
Sales returns book is also
 called returns inwards book. It is
 used for recording goods returned
 to us by our customers. The
 ruling of this books is exactly as
 the sales day book.
FORMAT
FOLLOWING IS THE FORMAT OF SALES RETURN BOOK
DATE   NAME OF THE CUSTOMERS   CREDIT   L.F.   AMOUNT
                               NOTE
CREDIT NOTE
Customers who return goods should be sent a credit note.
It is a statement sent by a business to another person
showing the amount credited to the account of the later.
Credit notes are serially numbered and are similar in form
to the invoices. These are usually printed in red ink. Credit
notes issued to customers are vouchers for the entries
appearing in the sales returns book.
POSTING
The total of the returns inwards book or sales
returns book is debited to returns inwards
account or sales returns account. The customers
who have returned the goods are credited
with the amount shown against their names.
POINTS TO REMEMBER

 ONLY CREDIT

TRANSACTIONS OF GOODS

 ARE RECORDED IN

SUBSIDIARY BOOKS LIKE

PURCHASE BOOK,

SALES BOOK,

PURCHASE RETURN BOOK,

SALES RETURN BOOK

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Subsidairy books

  • 1. SUBSIDAIRY BOOKS BY SHIVPRASAD VENGURLEKAR By PresenterMedia.com
  • 2. TYPES OF SUBSIDAIRY BOOKS •PURCHASE BOOK •PURCHASE RETURN BOOK •SALES BOOK •SALES RETURN BOOK
  • 3. •PURCHASE BOOK MEANING & PURPOSE Purchases book or purchases day book is a book of original entry maintained to record credit purchases. You must note that cash purchases will not be entered in purchases day book because entries in respect of cash purchases must have been entered in the cash book. At the end of each month, the purchases book is totaled. The total shows the total amount of goods purchased on credit. Purchases book is written up daily from the invoices received. The invoices are consecutively numbered. The invoice of each number is noted in the purchases book.
  • 4. FORMAT The following is the format of purchases day book: DATE NAME OF SUPPLIER INVOICE L. F. AMOUNT NO.
  • 5. RULING It is not ruled like the ordinary journal. The first column in this book is for date. In the second column, the name of the supplier or the seller, quantity of each article bought, description of the article, rate etc., are recorded. Sometimes a separate column to record the details of the transactions is added in the purchases day book. The third column is for invoice number. The fourth column is for ledger folio. The last column gives the total amount due to the supplier.
  • 6. POSTING The total of the purchases book is posted to the debit of purchases account. Names of the suppliers appear in the purchases book. These parties have supplied the goods. They are, therefore, credited with the amount appearing against their respective names. The double entry will thus be completed.
  • 7. • Sales Day Book MEANING and PURPOSE A sales book is also known as sales day book. It is a book of original entry in which the details of credit sales are recorded by a businessman. Total of sales book shows the total credit sales of goods during the period concerned. Usually the sales book is totaled every month. The sales day book is written up daily from the copies of invoices sent out.
  • 8. FORMAT FOLLOWING IS THE FORMAT OF SALES BOOK DATE NAME OF THE CUSTOMERS INVOICE L.F. AMOUNT NO.
  • 9. RULING It is ruled like purchase book. The first column in this book is for date. In the second column, the name of the customer or the buyer, quantity of each article bought, description of the article, rate etc., are recorded. Sometimes a separate column to record the details of the transactions is added in the purchases day book. The third column is for invoice number. The fourth column is for ledger folio. The last column gives the total amount due from the customer.
  • 10. POSTING The total of the sales book is credited to sales account. Customers whose names appear in the sales book are debited with the amount appearing against their names. Double entry is thus completed.
  • 11. •PURCHASE RETURN BOOK MEANING & PURPOSE • Purchases returns book is a book in which the goods returned to suppliers are recorded. It is also called returns outward book or purchases returns day book. Goods may be returned because they are of the wrong kind or not up to sample or because they are damaged etc. The ruling of this book is absolutely the same as of purchases day book.
  • 12. FORMAT FOLLOWING IS THE FORMAT OF PURCHASE RETURN BOOK DATE NAME OF THE CUSTOMERS DEBIT L.F. AMOUNT NOTE
  • 13. DEBIT NOTE When the goods are returned to the suppliers, an intimation is sent to them through what is known as a debit note. These debit notes serve as vouchers for these entries. A debit note is a statement sent by a businessman to another person, showing the amount debited to the account of the later. Debit notes are usually serially numbered and are prepared in the same form as that of the invoice.
  • 14. POSTING The total of the purchases returns or returns outwards book is credited to returns outward account or purchases return account (being the goods sent out). Individual suppliers to whom goods are returned are debited (because they receive the goods).
  • 15. •SALES RETURN BOOK MEANING & PURPOSE Sales returns book is also called returns inwards book. It is used for recording goods returned to us by our customers. The ruling of this books is exactly as the sales day book.
  • 16. FORMAT FOLLOWING IS THE FORMAT OF SALES RETURN BOOK DATE NAME OF THE CUSTOMERS CREDIT L.F. AMOUNT NOTE
  • 17. CREDIT NOTE Customers who return goods should be sent a credit note. It is a statement sent by a business to another person showing the amount credited to the account of the later. Credit notes are serially numbered and are similar in form to the invoices. These are usually printed in red ink. Credit notes issued to customers are vouchers for the entries appearing in the sales returns book.
  • 18. POSTING The total of the returns inwards book or sales returns book is debited to returns inwards account or sales returns account. The customers who have returned the goods are credited with the amount shown against their names.
  • 19. POINTS TO REMEMBER ONLY CREDIT TRANSACTIONS OF GOODS ARE RECORDED IN SUBSIDIARY BOOKS LIKE PURCHASE BOOK, SALES BOOK, PURCHASE RETURN BOOK, SALES RETURN BOOK