Meaning Definition Examples Cash Books sales book purchase book

1. Prof. S.N.Gaikwad
Vice Chairman
Prof.S.R. Tajane
Faculty Member

2. Subsidiary books are the book of
original entry and it is also called
primary records because the first
entry of transaction is
made in subsidiary books.
On the basis of subsidiary books postings
are made into concerned account
afterwards.

3. ❑ Posting of each entry becomes easy.
❑ As one type of transaction are
recorded in one books so it becomes
convenient to locate any desired
transaction.
❑ Important descriptions about the
transaction is also made in the related
books so a lot of information related
to the transaction is easily accessible.

4. ❑ They may be expensive in case of a
small business as in a small business
it is best to keep journal.
❑ It requires some basic knowledge of
accountancy as if any of the entries
are recorded incorrect then it will
be a problem or they need to be
rectified.

5. ❖ Purchase book
❖ Sales book
❖ Cash book
❖ Purchase return book
❖ Sales return book
❖ Bills received book
❖ Bills payable book

6. ❑ This book is used for recording
goods purchased on credit.
❑ Also known as invoice book, bought
book or purchased journal.
❑ It is not necessary to record the
transaction in the journal book where
they are entered in the purchases
book.

7. Date Particular
Invoic
e No.
L.F Amount

8. ❖ Sales book is used for recording goods
sold on credit.
❖ The record in sales book is made from
the outward invoice book which
contain the exact copy of each invoice
sent out to the customers.

9. Date Particular Outward
Invoice no.
L.F Amount

10. ❑The book used for recording goods
return for the seller is called
"Purchase Return Book".
❑ Also known as return outwards
Books.
❑ While retuning goods buyer prepares
debit note.

11. Date Particulars L.F Debit
Notes
Amount

12. It is a book used for recording
goods returned by the buyer.
Also known as returns inward book
While keeping records in sales return
books sellers prepares a credit note.

13. Date Particular L.F. Credit
Note
Amount

14. ❑ To record cash transaction, separate
book is kept which is called
Cashbook.
❑ The function of cashbook is to keep
records of all cash transactions.
❑ Cashbook takes the place of cash
account that is it is not necessary
to open separate cash account in
the ledger after keeping record in
the cashbook.

15. ❖ Simple cash book.
❖ Double column cash
book.
❖ Triple Column cash
book.
❖ Petty Cash book

16. ❑ prepared like cash account in ledger.
❑ All the cash received are entered in
amount column on debit side and all
cash paid appear on credit side in
amount column.
❑ Cash book is closed and balanced at
the end of the month.

17. Date Particular L.F. Amount Date Particular L.F Amount

18. ❑ A cashbook with discount column is
called double column cashbook.
❑ Two accounts, cash and discount are
combined in this book. Discount
allowed to the customers represent
loss.

19. Date Particular L.F Discount Amount Date Particular L.F Discount Amount

20. ❑ A cash book with discount and bank
column is triple column cashbook.
Three accounts are combined.
❑ In business firm most of the
payment are received and paid by
cheque. Transactions are preformed
through bank.

21. Date Particular L.F Discount Amount Bank Date Particular L.F Discount Amount Bank

22. Used to record small amount
of expenses.
Like stationary, cleaning charges and
postage.

23. Date Particulars Amount Date Particulars Amount

24. ❑ Bills receivable book is used to record
the bills received from debtors. When
a bill is received, details of it are
recorded in the bills receivable book.
❑ In the ledger the account of the person
from whom each bill is received is
credited with the amount of that bill
and the periodical total of the book is
posted to the debit of bills receivable
account.

25. Date
From whom
received
Term Due date L.F. Amount

26. ❑ Bills payable book is used to record
bill accepted by us. When a bill
drawn by our creditor is accepted
particulars of the same are recorded
in this book.
❑ In the ledger, the account of each
person whose bill has been accepted is
debited with the amount of the bill.
The monthly total of the bills
accepted is credited to the bills
payable account ledger.

27. Date
To whom
given Term Due date L.F. Amount

29. Prof. Satish R. Tajane
(M.Com, GDC&A,CMA-Inter,Ph.D. Appear)
GST & Income Tax
Consultant