explaination.......

1. Prof : Anjali KumarProf : Anjali Kumar PG 1 23/08/07PG 1 23/08/07
SubsidiarySubsidiary booksbooks

2.  Journal –Book of Original entryJournal –Book of Original entry
 Subsidiary booksSubsidiary books

3. Subsidiary Books :Subsidiary Books :
 Purchase BookPurchase Book
 Purchase Returns BookPurchase Returns Book
 Sales bookSales book
 Sales Returns BookSales Returns Book
 Bills receivable BookBills receivable Book
 Bills payable bookBills payable book
 Journal ProperJournal Proper

4. Subsidiary Books :Subsidiary Books :
Purchase Book :-Purchase Book :-
– CreditCredit Purchase ofPurchase of GoodsGoods
DateDate ParticularsParticulars L/fL/f PurchasePurchase
Invoice NoInvoice No
AmountAmount
20072007
April 2April 2
2525
XY LimitedXY Limited
L& TL& T
2323
3535
33183318
4536845368
100,000100,000
450,000450,000
TotalTotal 550,000550,000

5. Subsidiary Books :Subsidiary Books :
Purchase Return Book :-Purchase Return Book :-
– Goods purchased on creditGoods purchased on credit
return to the supplierreturn to the supplier
DateDate ParticularsParticulars L/fL/f Debit NoteDebit Note
No.No.
AmountAmount
20072007
AprilApril
1010
2828
XY LimitedXY Limited
L& TL& T
2323
3535
758758
629629
25,00025,000
17,00017,000
TotalTotal 42,00042,000

6. Subsidiary Books :Subsidiary Books :
Sales Book :-Sales Book :-
– CreditCredit Sales ofSales of GoodsGoods
DateDate ParticularsParticulars L/fL/f Sales BillSales Bill
NoNo
AmountAmount
20072007
April 1April 1
2222
RN LimitedRN Limited
Alpha LtdAlpha Ltd
2727
4040
41524152
41534153
100,000100,000
450,000450,000
TotalTotal 550,000550,000

7. Subsidiary Books :Subsidiary Books :
Sales Return Book :-Sales Return Book :-
– Goods sold on credit returnedGoods sold on credit returned
by the customerby the customer
DateDate ParticularsParticulars L/fL/f Credit NoteCredit Note
NoNo
AmountAmount
20072007
April 8April 8
2828
RN LimitedRN Limited
Alpha LtdAlpha Ltd
2727
4040
1010
1111
5,0005,000
2,0002,000
TotalTotal 7,0007,000

8. Subsidiary Books :Subsidiary Books :
Bills receivable Book :-Bills receivable Book :-
– Record of all Bill of exchangeRecord of all Bill of exchange
accepted by the customeraccepted by the customer
SS
NN
oo
datedate FromFrom
whomwhom
ReceivReceiv
eded
AcceAcce
ptorptor
DateDate
ofof
thethe
billbill
TermTerm Date ofDate of
MaturityMaturity
L/L/
FF
PayabPayab
le atle at
Rs.Rs. HowHow
depositedeposite
dd

9. QUIZ-3QUIZ-3

10. 1.1. Subsidiary books are books ofSubsidiary books are books of
___________ entry___________ entry
2.2. List down subsidiary books .List down subsidiary books .
3.3. In ________ book credit purchase ofIn ________ book credit purchase of
goods are written.goods are written.
4.4. Return Inward book is used to writeReturn Inward book is used to write
____ entries____ entries
5.5. Debit note is issued by ------- to -------Debit note is issued by ------- to -------

11. Subsidiary Books :Subsidiary Books :
Bills Payable Book :-Bills Payable Book :-
– Record of all Bill of exchangeRecord of all Bill of exchange
accepted by the customeraccepted by the customer
SS
NN
oo
DateDate
acceacce
ptedpted
NameName
of theof the
drawerdrawer
payepaye
ee
DateDate
ofof
thethe
billbill
TermTerm Date ofDate of
MaturityMaturity
L/L/
FF
PayabPayab
le atle at
Rs.Rs. RemarksRemarks

12. Subsidiary Books :Subsidiary Books :
Journal Proper :-Journal Proper :-
– Any transactions which cannotAny transactions which cannot
be recorded in any of subsidiarybe recorded in any of subsidiary
book or cash bookbook or cash book
DateDate ParticularsParticulars DoDo
cc
RefRef
L/fL/f DebitDebit CreditCredit

13. CASH BOOKCASH BOOK
 Special JournalSpecial Journal
 Resembles ledgerResembles ledger
 No need of opening separate cashNo need of opening separate cash
accountaccount

14. Kinds of Cash Book:-Kinds of Cash Book:-
1. Simple Cash Book / Single1. Simple Cash Book / Single
column cash Bookcolumn cash Book
2.Double column cash book2.Double column cash book
3.Three column cash book3.Three column cash book
4. Petty cash book4. Petty cash book
CASH BOOKCASH BOOK

15.  Prepare Cash book of Mr. Raj Associates fromPrepare Cash book of Mr. Raj Associates from
the followingthe following
1.5.071.5.07 Cash in hand Rs.100,000Cash in hand Rs.100,000
2.5.072.5.07 Borrowed cash from Mr. Basant Rs.Borrowed cash from Mr. Basant Rs.
50,00050,000
3.5.073.5.07 Purchased furniture Rs. 5000Purchased furniture Rs. 5000
4.5.074.5.07 Paid petty cash expenses Rs. 500Paid petty cash expenses Rs. 500
10.5.0710.5.07 Sold goods to Hari for Rs. 10000Sold goods to Hari for Rs. 10000
15.5.0715.5.07 Received from Shyam Rs. 38,000 forReceived from Shyam Rs. 38,000 for
goods sold on credit on 30.4-07goods sold on credit on 30.4-07
20.5.0720.5.07 Withdrew cash for personal use Rs. 1,000Withdrew cash for personal use Rs. 1,000
25.5.0725.5.07 Purchased Goods Rs.16,000Purchased Goods Rs.16,000
30.5.0730.5.07 Paid Rent Rs. 7,000Paid Rent Rs. 7,000

16. Date Particulars L/f amount date Particulars L/f amountDate Particulars L/f amount date Particulars L/f amount
1.5.07 To opening balance 100,0001.5.07 To opening balance 100,000 3.5.073.5.07 By furniture 5,000By furniture 5,000
2.5.07 to Mr. Basant’s Loan 50,000 4.5.072.5.07 to Mr. Basant’s Loan 50,000 4.5.07 By Petty cash 500By Petty cash 500
A/cA/c
15.5.7 To Shyam15.5.7 To Shyam 38,00038,000 20.5.720.5.7 By drawingsBy drawings 1,0001,000
25.5.7 By25.5.7 By Purchase of goodsPurchase of goods 16,00016,000
28.5.728.5.7 By rentBy rent 7,0007,000
31.5.731.5.7 by Salary 5,000by Salary 5,000
31.5.731.5.7 By balance c/dBy balance c/d 1,53,5001,53,500
1,88,000 1,88,0001,88,000 1,88,000
1.6.07 To balance b/d1.6.07 To balance b/d 1,53,5001,53,500

17. DateDate ParticularsParticulars LL
//
FF
DiscountDiscount
RsRs
Cash.Cash. datedate ParticularsParticulars LL
//
ff
DiscounDiscoun
t Rst Rs
CashCash
RsRs
CASH BOOK( with discount column

18. Case study on conceptCase study on concept
 Mr. Ashoka runs a transportingMr. Ashoka runs a transporting
company. On 1st January, 2007 hecompany. On 1st January, 2007 he
Purchased 2 trucks costing Rs.Purchased 2 trucks costing Rs.
400,000 /- each from M/s Popular400,000 /- each from M/s Popular
Auto Private Ltd.Auto Private Ltd.
 On the same day he receivedOn the same day he received
purchase invoice from M/s popular.purchase invoice from M/s popular.
Since he has not made any payment,Since he has not made any payment,
no record has been made in the booksno record has been made in the books
 On 1st March he has found that, theOn 1st March he has found that, the
price of the trucks has gone down toprice of the trucks has gone down to
Rs.375, 000 each. Now he isRs.375, 000 each. Now he is
completely confused which amountcompletely confused which amount
should be recorded. Kindly adviceshould be recorded. Kindly advice

19.  . Mr.Sreenath, who is dealing in the. Mr.Sreenath, who is dealing in the
business of mushroom cultivation. He takesbusiness of mushroom cultivation. He takes
up orders from hotels and cateringup orders from hotels and catering
companies.companies.
 On 28th February there was a wedding atOn 28th February there was a wedding at
his house. He used mushroom worth Rs.his house. He used mushroom worth Rs.
10,000/- for the same.10,000/- for the same.
 He is completely confused whether to showHe is completely confused whether to show
this amount in his books of account and if hethis amount in his books of account and if he
needs to record this in the books , how andneeds to record this in the books , how and
when it is to be recorded.when it is to be recorded.
 Kindly advice.Kindly advice.