xiii

Unit Overview.............................................................................................................................................. 2.66

3.1 Introduction ................................................................................................................................... 2.67
3.2. Objectives of Preparing the Trial Balance ............................................................................. 2.67
3.3 Limitations of Trial Balance ....................................................................................................... 2.68
3.4 Methods of Preparation of Trial Balance ............................................................................... 2.69
3.5 Adjusted Trial Balance (Through Suspense Account)......................................................... 2.73
3.6 Rules of Preparing the Trial Balance ....................................................................................... 2.73
Summary ...................................................................................................................................................... 2.78
Test Your Knowledge ................................................................................................................................ 2.78
Unit 4 : Subsidiary Books
Learning Outcomes ................................................................................................................................... 2.83
Unit Overview.............................................................................................................................................. 2.83
4.1 Introduction ................................................................................................................................... 2.84
4.2 Distinction between Subsidiary Books and Principal books ............................................ 2.85
4.3 Purchases Book ............................................................................................................................. 2.87
4.4 Sales Book ...................................................................................................................................... 2.91
4.5 Sales Returns Book or Returns Inward Book ........................................................................ 2.93

4.6 Purchase Returns or Returns Outward Book ........................................................................ 2.94

4.7 Importance of Journal ................................................................................................................. 2.96
Summary ...................................................................................................................................................... 2.98
Test Your Knowledge ................................................................................................................................ 2.98
Unit 5 : Cash Book
Learning Outcomes .................................................................................................................................2.103

Unit Overview............................................................................................................................................2.104
5.1 Cash Book - A Subsidiary Book and a Principal Book ......................................................2.104
5.2 Kinds of Cash Book ....................................................................................................................2.104
5.3 Posting the Cash Book Entries ................................................................................................2.111
5.4 Petty Cash Book ..........................................................................................................................2.112

© The Institute of Chartered Accountants of India