subsidiary books: Class 11 Account Note

In This Note You Will learn: 

Subsidiary books/Importance of Subsidiary books/Types of subsidiary books/Purchase book Practice/Purchase Account/Sales Book/Purchase Return Book/Return Outward Book/Purchase Return Account/Sales Return book/Sales Return Account: 

Subsidiary books are subdivided of journal. In large business organization, it is impossible to record all the financial transaction in voucher. The repeated business transaction should be booked separately in subsidiary books, subsidiary books are original books in which the repeated transactions of similar nature are are booked in one place according to chronological order.

• Importance

1. Division of work.
2. easy access the information in one place.
3. Increase efficiency of staffs.
4. Saving time and labour.

 

• Types of subsidiary books.

There are 7 types of subsidiary books.

• Purchase book.
• Sales book.
• Purchase return book.
• Sales return book.
• Bills receivable book.
• Bills payable book.
• Cash book.

1. purchase book:

The subsidiary books in which credit purchase of goods are recorded is known as purchase book. In this book cash purchase of goods, purchase of assets shouldn’t be recorded according to purchase invoice (bills).

 

1. following transaction are given of ABC furniture’s

jan. 5 purchase from Ram Furniture, industries,  kathmandu,

10 table @ Rs. 10,000 each

5 chairs @ Rs. 4,000

jan. 10 purchase from xyz Enterprises, biratnagar,

20 books case @ Rs. 5,000     each.

10 Drawers @ Rs. 7,000 each.

jan. 15 cash purchase made from Nepal Furniture’s, Dharan,

50 table @ Rs. 12,000 each.

Required purchase book and purchase account.

ABC furniture

Date	Particulars	Inv. no.	I .f	Detail amount	Total amount
Jan. 1.	Ram furniture, industries ,ktm 10 tables @ Rs. 10,000 each 5 chairs @ Rs . 4,000			1,00,000 20,000	1,20,000
Jan. 10.	Xyz enterprises, biratnagar 20 books case @ Rs. 5,000 10, Drawers @ 1,000 each Less 10% discount			1,00,000 70,000 17,000	1,53,000
	Total				2,13,000

 

 

 

Purchase Account

Date	Particular	J. f	Amount	Date	Particular	J.f	Amount
Jan. 11.	To, cash A/c		6,00,000	Jan. 31.	By, balance c/d		8,73,000
Jan. 31.	To sundries as per purchase book		2,73,000
			8,73,000				8,73,000
Feb. 1.	To balance b/d

 

Sales book:

                          Goods sold on credit should be recorded in separate subsidiary books on the basis of sales invoice which is known as sales book. This book doesn’t maintain record of cash sales of goods and sales of assets either its cash or credit.

 

Questions no. 1   following transactions of ABC Electronic are given.

Magh 5 goods sold to gita electronic concern, hetauda

                 10 colour  tvs. @ Rs. 25,000 per Tv.

                 15 B.W Tvs @ Rs. 10,000 each.

                 Less 5% trade discount on both.

magh 15 following goods sold to Nepal electronic Enterprises, Kathmandu.

                 5 Refrigerators @ Rs. 30,000 each

                 10 washing machines @ Rs. 50,000 each.

                 Less 3% Trade Discount on washing Machine only.

magh 25 cash sales made to Ram enterprises, hetauda

                 50 colours Tvs @ S. 20,000 each.

                          Less 2% cash Discount.

• Required

1. sales book
2. sales account

 

Sales Book

Date	Particular	Invoice no.	L.f	Details amount	Total amount
Magh 5	Gita electronic concern hetauda 10 colour Tvs @ Rs. 25000 each 15 B.W Tvs. @ Rs. 10,000 each. Less 5% Trade Discount			25,000     1,50,000 4,00,000 20,000	3,80,000
Magh15	Nepal electronic Enterprises, ktm 5 refrigerators @ 30,000 each. 10 W. m.@ 50,000 each. Less 3% Trade Discount on WM			1,50,000     5,00,000 6,50,000   1,5000	6,35,000
	Total				10,15,000

 

 

Sales Account

Date	Particular	J.f	Amount	Date	Particular	J. f	Amount
M. 30	To, balance c/d		20,15,000	M. 25	By, cash A/c		9,80,000
					By, discount A/c		20,000
				M. 30	By, sundries as per		10,15,000
			20,15,000		Sales book		20,15,000
				p. 1	By, balance b/d		20,15,000

 

2. purchase return book

If goods are returned to the suppliers for any reason after it has been purchased must be recorded in a subsidiary book which is known as purchase return book. Purchase return books maintain the record of the return goods of credit purchase. It is also known as return outward book.

Questions no. 3 following transaction are given to you. falgun 5 following goods returned to anil Enterprises

                 30 pants @ Rs. 3,000 each.

                 20 trousers @ Rs. 2,000 each.

                          (Less 5% Trade Discount)

falgun 21 goods returned to ABC Com. Banglore.

                 500 saries @ 2,000 each.

                 100 pairs of shoes @ Rs. 3,000 each pair.

                 Less 10% Trade Discount on both.

falgun 15 furniture returned to Nepal Enterprises

                 10 Racks @ 5,000 each.

• Required: –
• Return outward book.
• Purchase return Account.

 

Return outward book

Date	Particulars	Debit n.n	L.F	Detail Amount	Total Amount
Falgun 5	Anil enterprises 30 pants @ Rs. 3,000 each. 20 trousers @ Rs. 2,000 each Less 5% trade discount on trousers			90,000 40,000 1,30,000 2,000	1,28,000
Falgun 21.	ABC com. Banglore 500 saries @ 2,000 each 100 pairs of shoes @ 3,000 each pair       Less 10% T. D.   Total			10,00,000 3,00,000 1,30,000 1,30,000	1,17,000 12,98,000

 

 

Purchase Return Account

Date	Particular	J.F	Amount	Date	Particular	J.F	Account
11-31	To balance c/d		12,98,000	5-31	By, sundries as per purchase return book		12,98,000
			12,98,000				12,98,000
				12-1	By, balance b/d		12,98,000

 

Sales return book

The buyer can return defective goods to us. The subsidiary book in which credit sales returned transaction are recorded it is known as sales return book. it is also known as return inward book.

Questions

following transaction of ekta books and stationeries are given.

bhaddra- 4 goods returned from Jhapa Enterprises, Btm

50 english books @ Rs. 300 each

40 accountancy @ Rs. 500 each

bhadra-15 following goods returned from gopal stores, dharan

100 nepali books @ Rs. 400 each

30 economics @ Rs. 600 each

less 5% trade discount on both

bhadra-25 following goods returned from shyam, emporium

10 dozen pen @ per pen

50 exercise book @ Rs. 5 per ball pen

less 3% trade discount

required: 1. sales return book

3. sales return account

 

Sales return book

Ekata books and stationeries

Date	Particular	c.n.n.	L.f	Detail amount	Total amount
Bhadra -4	Jhapa enterprises, Btm 50 english books @ RS. 300 each			15,000
	40 accountancy @ RS. 500 each			20,000
					35,000
Bhadra-15	Gopal stories, dharan 100 nepali books @ 400 each			40,000
	30 economics @ Rs. 600 each			18,000
				58,000
	5% trade discount			2,900	55,100
Bhadra-25	10 dozen pen @ 10 per pen			1200
	50 exercise book @ Rs. 30 each			1500
	10 dozen ball pen @ Rs. 5 per pen			600
				3,300
	Less 3% trade discount			99
					3,201
	Total				93,301

 

Sales Return Account

Date	Particular	J.f	Amount	Date	Particular	J. F	amount
Bhadra-31	To sundries as per sales return book		9,330	Bhadra-31	By, balance c/d		9,330
			9,330				9,330
Asoj-1	To balance b/d		9,330