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Subsidiary books
- 1. ST. PAUL INSTITUTE OF PROFESSIONAL STUDIES ASSIGNMENT 2015 Submitted By: Submitted To: Mr. Tanishq Nigam Prof. Gangan Mittal Mr. Nikung Thakur Mr. Jayesh Nair
- 3. MEANING Subsidiary Books refers to books meant for specific transactions of similar nature. Subsidiary Books are also known as Special journals or day books. To overcome shortcoming of the use of the journal only as a book of original entry, the journal is subdivided into specific journals or subsidiary books. Subsidiary book is the sub division of Journal. These are known as books of prime entry or books of original entry as all the transactions are recorded in their original form. In these books the details of the transactions are recorded as they take place from day to day in a classified manner.
- 4. FOLLOWING TYPES OF BOOKS ARE USED UNDER SUBSIDARY BOOKS — 1) Cash Book 2) Petty Cash Book 3) Journal Proper 4) Purchase Book 5) Purchase Return Book 6) Sales Book 7) Sales Return Book 8) Bills Receivable Book 9) Bills Payable Book
- 6. Format Of Single Column Cash Book Date Particulars L.F. Amount Date Particulars L.F . Amount
- 7. Format Of Double Column Cash Book Date Particulars L.F. Cash Bank Date Particulars L.F. Cash Bank
- 8. Format Of Triple Column Cash Book Date Particulars L.F. Cash Bank Discount Date Particulars L.F. Cash Bank Discount
- 9. 2) PETTY CASH BOOK Allbusinessesandorganizations'regularlyincursmall itemsofexpenditure.Oftentheseexpensesarepaidforby cashsincetheamountrequiredmaybetoosmallforthe paymenttobemadebycheque. Suchexamplesofthistype ofexpensecouldbepaymentofpostagestamps,travelling expenses,smallitemsofstationery,andsoon. Suchsmall itemsofexpensesareusuallyrecordedinthepettycash bookthatisdesignedspecificallyforthispurpose.
- 10. Format Of Petty Cash Book Amount Received Date Particulars V.No. Total Travelling Expenses Postages Stationery Office Expense s Misc. Expenses
- 11. Example FromthefollowingparticularsprepareaPettyCash BookunderImprestSystem.2015 Jan. 1. Received from the Chief Cashier as imprest cash Rs.400 Jan. 2. Paid Taxi hire Rs.20. Jan. 3. Paid postage Rs.28 and stationery Rs.60. Jan. 4. Purchased stationery Rs.48. Jan. 5. Paid telegram charges Rs.28 and bus fare Rs.4. Jan. 6. Bought postage stamps Rs.96. Jan. 7. Paid Rs.72 for repairs of typewriter.
- 12. Analytical Petty Cash Book Amount Receive d 400 400 44 356 Date 2015 Jan 1. Jan 2. Jan 3. Jan 3. Jan 4. Jan 5. Jan 5. Jan 6. Jan 7. Jan 31. Particulars Cash Received Taxi Hire A/c Postage A/c Stationery A/c Stationery A/c Telegram A/c Bus Fare A/c Postage A/c Repair A/c Balance c/d Balance b/d Cash Received V.No. Total 20 28 60 48 28 4 96 72 356 44 400 Travelling Expenses 20 4 24 Postage s 28 28 96 152 Stationery 60 48 108 Repairs 72 72 Misc. Expenses
- 14. Format Of Journal Proper Book Date Particulars L.F. Dr. Amt. Cr. Amt.
- 16. Format Of Purchase Books Date Particulars Invoice No. L.F. Details Total Amount
- 17. 5) PURCHASE RETURN BOOK Apurchasereturntransactioniswhenthebuyerofmerchandise, inventory,fixedassets,orotheritemssendsthesegoodsbacktothe seller.Excessivepurchasereturnscaninterferewiththe profitabilityofabusiness,sotheyshouldbecloselymonitored. Thereareanumberofreasonsforpurchasereturns,suchas: Thebuyerinitiallyacquiredanexcessivequantity,andwantsto returntheremainder Thebuyeracquiredthewronggoods Thesellersentthewronggoods Thegoodshaveproventobeinadequateinsomeway
- 18. Format Of Purchase Return Books Date Particulars Invoice No. L.F. Details Total Amount
- 20. Format Of Sales Book Date Particulars Invoice No. L.F. Detail Amount
- 21. 7) SALES RETURN BOOK Salesreturnsjournalisabookinwhichsellerrecordsallthesalesthathave beenreturnedtohimbyhiscustomers.Salesreturnsjournalisalsoknown asreturnsinwardsbookandsalesreturnsdaybook. Asellermustexpectinthecourseofbusinessthatsomeofhiscustomers willreturngoodsforsomesolidreasons(wrongcolor,wrongsize,not accordingtospecification,imperfectlyfinishedetc.)Whenadebitnoteis received,alongwiththegoodsreturnedfromthebuyeritisaclaimonthe seller.Ifthisclaimisacceptedbythesellerthenhemakesouta"credit note".induplicate.Thetopcopyissenttothebuyerwhohasreturnedthe goods.Thesecondcopyisgiventotheclerkintheaccountsdepartment, whoentersitintothe"salesreturnsjournal".
- 22. Format Of Sales Return Book Date Particulars Invoice No. L.F. Details Total Amount
- 23. 8) BILLS RECEIVABLE BOOK AlsoknownasaB/Rbook,aBillsReceivableBookisasubsidiaryora secondarybookofaccounting,whereallbillsofexchange,which arereceivableforthebusiness,arerecorded.Thetotalvalueofallthe billsreceivableforanaccountingperiodistransferredtotheledger. Apersonwhodrawsthebillofexchangeiscalleda“drawer”and acustomeronwhomitisdrawniscalleda“drawee”or an“acceptor”.Abillreceivablefora“drawer”isabillpayablefora “drawee”.Abillsreceivableaccountwillusuallyhaveadebitbalance. Becauseabillreceivableissupposedtobereceivedatmaturity,itacts asanassetforthebusiness.Generally,everybillhasa3daygrace period.
- 24. Format Of Bills Receivable Book Serial No. Date Of Receipt From Whom Received L.F. Period Due Date Amount
- 25. 9) BILLS PAYABLE BOOK AlsoknownasaB/Pbook,aBillspayablebookisasubsidiaryor asecondarybookofaccountingwhereallbillsofexchange,which arepayablebythebusiness,arerecorded.Thetotalvalueofall thebillspayableforanaccountingperiodistransferredtothe ledger. Theperson,whodrawsthebillofexchange,iscalled a“drawer”andthecustomer,onwhomitisdrawn,iscalled a“drawee”oran“acceptor”.Abillreceivablefora“drawer”isa billpayablefora“drawee”.Abillspayableaccountwillusually haveacreditbalanceandbecauseitissupposedtobepaidat maturity,itactsasaliabilityforthebusiness.Generally,every billhasa3-daygraceperiod.
- 26. Format Of Bills Payable Book Serial No. Date Of Receipt From Whom Received L.F. Period Due Date Amount