Presentation of Subsidiary Books

Introduction
Subsidiary books are the book of original entry and it
is also called primary records because the first entry of
transaction is made in subsidiary books.

On the basis of subsidiary books postings are made

into concerned account afterwards.
Advantages of Subsidiary Books
posting of each entry becomes easy.

as one type of transaction are recorded in one books so

it becomes convenient to locate any desired
transaction.

important descriptions about the transaction is also

made in the related books so a lot of information
related to the transaction is easily accessible.
Disadvantages of Subsidiary book
they may be expensive in case of a small business as in
a small business it is best to keep journal.

it requires some basic knowledge of accountancy as if

any of the entries are recorded incorrect then it will be
a problem or they need to be rectified.
Types of subsidiary books
Purchase book
Sales book
Cash book
Purchase return book
Sales return book
Bills received book
Bills payable book
Purchase book
This book is used for recording goods purchased on
credit.

also known as invoice book, bought book or purchased

journal.

It is not necessary to record the transaction in the

journal book where they are entered in the purchases
book.
 Format of purchase book
Date Invoice L.F Amount
Particular
No.
Sales Book
 Sales book is used for recording goods sold on credit.

The record in sales book is made from the outward

invoice book which contain the exact copy of each
invoice sent out to the customers.
Sales book format
Date Particular Outward L.F Amount
Invoice no.
Purchase Return Book
The book used for recording goods return for the
seller is called "Purchase Return Book".

Also known as return outwards Books.

 While retuning goods buyer prepares debit note.

 Format of Purchase Return book
Date Particulars L.F Debit Amount
Notes
Illustration: Purchase Return
Post the following transactions in the purchases return
book of Harnam Dutt and prepare the them into the ledger.
2017
Feb 4 Returned goods to Alma 20 Plastic Cups @ ₹ 100
each, they were not found as per the sample approved.
Feb 11 Returned goods to Chandan 40 wooden chairs
@ Rs.300 each and 15 tables @ ₹ 1000 each, due to inferior
quality and bad shape.
Date Particulars Debit L. Amount
Note F. Details Total
No (₹) (₹)

2017 Alma
Feb 20 Plastic Cups @ ₹ 100 2000
4 each
Chandan 12,000
40 wooden chairs @ Rs.300 15,000
11 15 tables @ ₹ 1000 each, 27,000

29,000
Total
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.
 Format of sales return book
Date Particular L.F. Credit Amount
Note
 Illustration: Sales Return
Enter the following transactions in Sales Return/Returns
Inward Book:
2017
June 5 Returned by Atul 30 bed sheets each costing ₹ Rs.450,
due to small size.
June 9 Bajaj Collections returned 70 curtains, each costing ₹
400, due to colour defect.
June 19 Sahil Collections returned 20 Gents Kurtas sets each
costing ₹ 560, because of being not in accordance with order.
Date Particulars Credit L. Amount
Note F. Details Total
No (₹) (₹)

2017
June Atul 13,500
5 30 bed sheets each costing ₹ Rs.450

9 Bajaj Collections
70 curtains, each costing ₹ 400 28,000

19 Sahil Collections
20 Gents Kurtas sets each costing ₹ 560 11,200
52,700
Total 52,700
Cash Book
To record 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.
Types of cash book
Simple cash book.

Double column cash book.

Triple Column cash book.

Petty Cash book

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.
Format of simple cash book
Date Particula L.F. Amount Date Particula L.F Amount
r r
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.
Double column cash Book Format
Date Particula L.F Discoun Amoun Date Particula L.F Discoun Amoun
r t t r t t
Triple Column cash book
A cash book with discount and bank column is triple
column cashbook. Three accounts are combined.

In business firm most of the payment are received and

paid by cheque. Transactions are preformed through
bank.
 Triple Column Cash book
Date Particular L.F Discount Amount Bank Date Particular L.F Discount Amount Bank
Petty Cash Book
Used to record small amount of expenses.

Like stationary, cleaning charges and postage.

Format of petty cash book
Date Particulars Amount Date Particulars Amount
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.

In the ledger the account of the person from whom

each bill is received is credited with the amount of that
bill and the periodical total of the book is posted to the
debit of bills receivable account.
Format of bills receivable book
From
Date whom Term Due date L.F. Amount
received
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.

In the ledger, the account of each person whose bill

has been accepted is debited with the amount of the
bill. The monthly total of the bills accepted is credited
to the bills payable account ledger.
Format of payable book
To whom
Date Term Due date L.F. Amount
given
 Quiz about subsidiary
books
Which is not the one type of Subsidiary
Book ?
Bills payable book.

Bills receivable book.

Triple column cash book.

Four column cash book.

How many types of cash book we discussed
?

Four

Five

Three

Two
How many column a simple cash book
have ?

8

7

9

6
Which type of subsidiary book contains “Outward
invoice no” Column ?

Cash Book

Return Book

Bills Payable Book

Sales return book

 Recognize the format
Cash book

Date Particular L.F Credit Amount

Notes Sales Return Book

Bills payable book

Purchase book
Which Book is also known as Invoice Book
?

Sales book

Simple cash book

Purchase book

Purchase return book

which book is used for recording goods
return to the seller ?

Sales return book

Bills payable book

Purchase return book

Bills receivable book

In Which book small expenses are recorded
?

Petty cash book

Cash book

Single column cash book

Triple column cash book

Thank you to all

Having Any query ?