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Subsidiary books1
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- 2. Post to the ledger Source documents Record transactions Preparea trial balance Prepare financial statements and report Transaction Analyze OVERVIEW OF THE ACCOUNTING PROCESS
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- 5. MEANING When no.of transactions are large, it is practically impossible to record all the transactions through one journal. To overcome the shortcomings of the use of Journal, the Journal is subdivided into special journals Journal is subdivided into various parts known as subsidiary books or subdivisions of journal
- 6. It isalso called primary records. By trader In case transaction are numerous better to prepare the subsidiary book
- 7. NEED OF SUBSIDIARYBOOKS 1) To avoid repetition. 2) To provide information on a prompt basis. 3) To facilitate internal check system. 4) To classify transactions. 5) To avoid bulky & voluminous records.
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- 9. Name of thespecial journal Specific transactions to berecorded I. Cash Journal (a) Single column cash book (b) Double column cashbook (c) Triple column cash book (d) Petty cash book Cash transactions Cash and discount transactions Cash, bank and discount transactions Petty cash transactions I. Goods journal (a) Purchase book (b) Sales book (c) Sales returns book (orReturn Inwards book) (d) Purchase returns book(or Return outwardsbook) Credit purchase of goods Credit sales of goods Goods returned by those customers to whom goods were sold on credit Goods returned to those suppliers from whom goods were purchased on credit I. Bills journal (a) Bills receivable book (b) Bills payable book Bills receivable drawn Bills payable accepted I. Journal proper Transactions not covered elsewhere
- 10. PURCHASE BOOK Thisbook is used for recording goods purchased on credit. Purchase book ----- invoice book, ------bought book ------purchased journal. It is not necessary to record in journal book
- 11. FORMAT OF PURCHASEBOOK Date Particular Invoice No. L . F Amount Party name (name of the suppliers)
- 12. SALES BOOK Salesbook is used for recording goods sold on credit. which contain the exact copy of each invoice sent out to the customers.
- 13. SALES BOOK FORMAT DateParticular Outward Invoice no. L. F Amoun t Party name (name of the customer)
- 14. PURCHASE RETURN BOOK The book used for recording goods return to the seller is called "Purchase Return Book". Also known as return outwards Books. While retuning goods buyer prepares debit note.
- 15. FORMAT OF PURCHASERETURN BOOK Date Particulars L.F Debit Notes Amount
- 16. SALES RETURN BOOK 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.
- 17. FORMAT OF SALESRETURN BOOK Date Particular L.F. Credit Note Amount
- 18. BILLS RECEIVABLE BOOK 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.
- 19. FORMAT OF BILLSRECEIVABLE BOOK Date From whom received Term Due date L.F. Amount
- 20. BILLS PAYABLE BOOK 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.
- 21. FORMAT OF PAYABLEBOOK Date To whom given Term Due date L.F. Amount
- 22. CASH BOOK Torecord 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.
- 23. TYPES OF CASHBOOK Simple cash book. Double column cash book. Triple Column cash book. Petty Cash book
- 24. SIMPLE CASH BOOK 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. DOUBLE COLUMN CASH BOOK 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.
- 25. TRIPLE COLUMN CASHBOOK This Cash – book has 3 amount columns (Cash, Bank and Discount) on each side All cash receipts, deposits into bank and discount allowed are recorded on the debit side All cash payments, withdrawals from bank and discount received are recorded on the credit side In business firm most of the payment are received and paid by cheque. Transactions are preformed through bank.
- 26. SINGLE-COLUMN CASH BOOK DATEPARTICULARS L.F AMOUNT DATE PARTICULARS L.F AMOUNT DOUBLE-COLUMN CASH BOOK DATE PARTICULAR S CASH Discount allowed DATE PARTICUL ARS CASH Discount received
- 27. TRIPLE-COLUMN CASH BOOK DATEPARTICU LARS DISCOUNT CASH BANK DATE PARTICUL ARS DISCOUNT CASH BANK
- 28. PETTY CASH BOOK Used to record small amount of expenses. Like stationary, cleaning charges and postage This book keeps account of all the miscellaneous spending. This might include: child fees, window- cleaning bills, stationery, postage, cleaning supplies and any other sundry item.
- 29. PETTY CASH BOOK AMT. RECEIVED DATEPARTICULAR AMOUNT POSTAGE CARRIAGE TRAVELLING SUNDRY EXP.
- 30. FORMAT OF PETTYCASH BOOK Petty Cash Book Da te Partic ulars Cash Book Folio Total (Rs.) Date Parti cular s Vo uc her No Posta ge Telegr am Rs. Conve yance Travelli ng Rs. Staff Welfa re Rs. Carta ge Rs. Printi ng & Statio nery Rs. Misce llane ous Rs. Total Rs. Receipts Payments
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- 32. WHICH IS NOTTHE ONE TYPE OF SUBSIDIARY BOOK ? Bills payable book. Bills receivable book. Triple column cash book. Four column cash book.
- 33. HOW MANY TYPESOF CASH BOOK WE DISCUSSED ? Four Five Three Two
- 34. HOW MANY COLUMNA SIMPLE CASH BOOK HAVE ? 8 7 9 6
- 35. WHICH TYPE OFSUBSIDIARY BOOK CONTAINS “OUTWARD INVOICE NO” COLUMN ? Cash Book Return Book Bills Payable Book Sales return book
- 36. RECOGNIZE THE FORMAT DateParticular L.F Credit Notes Amount Cash book Sales Return Book Bills payable book Purchase book
- 37. WHICH BOOK ISALSO KNOWN AS INVOICE BOOK ? Sales book Simple cash book Purchase book Purchase return book
- 38. WHICH BOOK ISUSED FOR RECORDING GOODS RETURN TO THE SELLER ? Sales return book Bills payable book Purchase return book Bills receivable book
- 39. IN WHICH BOOKSMALL EXPENSES ARE RECORDED ? Petty cash book Cash book Single column cash book Triple column cash book
- 40. RECOGNIZE THE FORMAT DateParticular L.F Inward invoice Amount Cash book Sales Return Book Bills payable book Purchase book
- 41. UNDER BILL PAYABLESWHO DRAWN THE BILL ----------