Difference Between Search & Browse Methods in Odoo 17
Subsidiary books
1. Subsidiary books
Subsidiary books of prime entry or original
entry are those books where business
transaction are recorded in the books in the first
instance and then posted in the ledger from
these books.
2. Classification of subsidiary books
1 Cash Book -> (to record receipt and
payment of cash)
2 Purchase Book -> (to record all credit
purchases)
3 Sales Book -> (to record all credit
sales)
4 Purchase Return Book -> (to record return
outwards)
5 Sales Return Book -> (to record return
inward)
3. 6 Bills Receivable Book -> (to record all bills
received from customer)
7 Bills payable Book -> (to record all
acceptance made by the firm)
8 Journal Proper -> (to record all transactions
which could not be recorded in any of the
above subsidiary)
4. Advantages of subsidiary books
1. Economy in labour.
2. More accuracy.
3. Availability of additional information.
4. Maintenance of specialised accounts.
5. Division of work.
6. Increases efficiency.
7. Helps to locate the errors.
5. Limitations
1. Not needed for small concerns.
2. There are chances to commit mistakes.
3. It is expensive.
6. Cash book
Cash book is maintained to record the transactions,
relating to the receipt and payment of cash.
Kinds of cash book
1) Simple cash book
2) Two column cash book
3) Three column cash book
4) Multi columnar cash book
7. Simple cash book
Date Particulars
(receipts)
R
N
L
F
Amo
unt
Date Particulars
(payments)
V
N
L
F
Amou
nt
Dr
Cr
8. Double column cash book
Date Particulars
(receipts)
R
N
L
F
disco
unt
cash Date Particulars
(payments)
V
N
L
F
discou
nt
cash
Dr
Cr
9. Points to be borne in mind while
preparing two column cash book
Che`que, bank draft received should be treated as cash
received unless, it is deposited into the bank on the
same day.
If Cheque, bank draft received and it is deposited into
the bank on the same day the transaction should be
split in two transactions namely
1 receipt of cash on some account
2 deposit cash into bank.
10. Similar is the treatment even when somebody directly
deposit cash or cheque into bank.
If a cheque which was received on a previous date, is
deposited into bank , it should be treated as cash
deposited into bank. so an entry had to be made on
the credit side of the cash book
If any payment is made by cheque, it should be
assumed that payment is made in cash by withdrawing
cash from the bank. Thus when payment is made by
cheque,
A-Make an entry for withdrawing cash from bank for the
office.
11. B-Make an entry for paying cash.
Similar shall be the accounting treatment if cash is
withdrawn from the bank for personal use.
Bank charges debited by the banker should assumed
cash is withdrawn from the bank and the same is paid
to the bank.
When the bank makes payment on our behalf ,it
should be assumed that cash is withdrawn from the
bank and payment is made.
When interest is credited by the bank on our deposits,
the transaction is split in to two
12. A- receiving cash for bank interest.
B-depositing cash into bank.
If crossed cheque is received from someone, it should
be assumed that it is deposited into the bank on the
same day
Cheque received should be treated as uncrossed
cheques unless otherwise stated.
If a cheque issued by us is dishonoured,it is entered as
A-cancellation of withdrawal of cash from the bank.
B-cancellation of payment of cash.
13. When cheque deposited by us is dishonoured two
entries should be made
A-for cancelling the receipt of cash
B-cancelling the deposit of cash
14. Three column cash book
Date Particulars
(receipts)
R
N
L
F
disco
unt
cash bank Date Particulars
(payments)
V
N
L
F
discou
nt
cash Bank
Dr
Cr
15. Points to be borne in mind while
preparing three column cash book
1)Amount brought as capital
Cash column—if introduced in cash
Bank column– if deposited in bank
2) Opening balance should be written as ‘To balance b/d and
Bank overdraft should be entered in the bank column as
‘By balance b/d.
3)Cash paid into bank and cash withdrawn from the bank
should be entered as contra entries
Contra entry is one which appears on both side of the cash
book and letter ‘C’ should be written in the LF column
on each side of the cash book
16. Entry for deposit
Bank a/c ----Dr
To cash a/c
Entry for withdrawal
Cash a/c -----Dr
To Bank a/c
4) Receipt of cheque
Cheque received and not deposited should be debited in cash
book
Later when cheque sent for collection, contra entry will be
recorded in the cash book
Cheque received and immediately deposited in to bank
should be debited in the bank column
17. 5) Payment by cheque should be credited in the bank
column of cash book
6)Dishonoured cheque should be credited in the bank
column to cancel the previous debit given to the bank
column when cheque was deposited.
7 )Bank charges and payments made by the bank on
behalf of the customer should be entered in the bank
column on the credit side of the cash book.
18. Petty cash book
The word ‘petty’ is derived from the French word petit
which means small. It is subsidiary cash book where
all very small expenses of frequent nature are recorded
It is used for recording small payments like postage &
telegram, printing & stationary, cartage and carriage,
travelling expenses etc.
19. Advantages
It is simple and does not require sound knowledge of
accounting.
Chief cashier job will be simplified.
Number of entries will be reduced in main cash book
It will saves time and space.
20. Types of petty cash
Simple petty cash book
Analytical petty cash book
Imprest system of petty cash book
21. Simple petty cash book
Amount
received
C
B
F
Date particulars V.no L.F Amount
22. Analytical petty cash book
Amount
received
C
B
F
date particulars V
N
Total
amoun
t
Analysis of payments
Cartag
e &
coolie
Travel
ling
exp
Postag
e &
telegr
am
Printing &
stationery
wages Sundry
exp
LF
no
Led
ger
A/c
23. Purchase book
This book is used for recording all the transactions of
credit purchase only. This book is also known as
Inward Invoice or purchase journal.
25. Purchase return book
Purchase returns are recorded in the purchase return
book. For every return, a debit note is prepared and
sent to the supplier for making necessary entries in his
book.
Debit note
When goods are returned to the supplier, a statement
called ‘debit note’ is sent along with goods. It is an
information to the supplier that his account is being
debited with the value of goods returned to him
29. Sales return book
This book is used to record sales returns or the goods
returned by the customers.
Credit note.
When goods are received back from a customer, a credit
note is prepared in the name of customer. It is
acknowledgement of return, intimating the customer
that his account is credited for the goods returned by
him.
30. Structure of sales return book
Date Particulars Credit note
no
L.
F.
Amount
31. Bills receivable book
S/no Date Name of
acceptors
Date
of
bills
Tennor Date of
maturity
Where
payable
L.
F
Amount
32. Bills payable book
S/no date Name of
drawer
Date
of
bills
Tennor Date of
maturity
Where
payable
L.
F
Amou
nt