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.
- Division of work.
- easy access the information in one place.
- Increase efficiency of staffs.
- 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.
- 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).
- 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.
|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
|Jan. 10.||Xyz enterprises, biratnagar
20 books case @ Rs. 5,000
10, Drawers @ 1,000 each
Less 10% discount
|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|
|Feb. 1.||To balance b/d|
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.
- sales book
- sales account
|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
|Magh15||Nepal electronic Enterprises, ktm
5 refrigerators @ 30,000 each.
10 W. m.@ 50,000 each.
Less 3% Trade Discount on WM
|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|
|p. 1||By, balance b/d||20,15,000|
- 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
|Falgun 21.||ABC com. Banglore
500 saries @ 2,000 each
100 pairs of shoes @ 3,000 each pair
Less 10% T. D.
Purchase Return Account
|11-31||To balance c/d||12,98,000||5-31||By, sundries as per purchase return book||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.
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
- 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||
|40 accountancy @ RS. 500 each||
|Bhadra-15||Gopal stories, dharan
100 nepali books @ 400 each
|30 economics @ Rs. 600 each||
|5% trade discount||2,900||55,100|
|Bhadra-25||10 dozen pen @ 10 per pen||
|50 exercise book @ Rs. 30 each||
|10 dozen ball pen @ Rs. 5 per pen||
|Less 3% trade discount||99|
Sales Return Account
|Bhadra-31||To sundries as per sales return book||
|Bhadra-31||By, balance c/d||9,330|
|Asoj-1||To balance b/d||9,330|