प्रयोगकर्ता:MILAN ADHIKARI

Subsidiary Books

             In the past, traders use to keep record of the transaction in the journal. But it was Later found not convenient. If all the transaction are recorded in the journal then the journal book becomes more thick and difficult to handle it. In big business houses, it becomes impossible to carry on the work of recording business transaction. therefore now a days large scale business firms like to keep record of transaction in subsidiary books instead of journal. 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.
    Following types of books are used under subsidiary books. 

1. Purchase book 2. Sales book 3. Cash book 4. Purchase return book 5. Sales return book 6. Bills received book

1. Purchase book

            This book is used for recording goods purchased on credit. This book is also known as invoice book, bought book or purchased journal. It must be noted that only credit purchases are recorded in this book. Things purchased on credit for personal use are not recorded in this book. It also does not record the fixed assets purchased.

It is not necessary to record the transaction in the journal book where they are enter in the purchases book, because this book contains the name and address of seller, date of transaction and amount of goods. After recording in purchases book separate amount is to be open in the ledger for each supplier of goods. The amount of each purchase will be credited to its respective personnel account.

2. Sales book

         Sales book is used for recording goods sold on credit. When the trader sells goods on credit then he should keep record in sales book to know how much goods have been sold, when and to whom. Thus a sales goods is prepared to know credit sales. If all the credit sales passed through journal and post them in concern ledger then it takes time because for every debit, credit also appears side by side. 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. There are five columns in sales book for date, particulars, outward invoice no. Ledger folio and amount. Name and address of customer are written in particular column.

3. Purchase return book

         The book used for recording goods return for the seller is called "Purchase Return Book". It is also known as return outwards Books. The buyer returns goods when he finds them damaged or inferior in quality or against the sample. While retuning goods buyer prepares debit note. Debit note is a letter sent by the buyer to the seller to inform about the adjustment of amount of goods return in the buyer account and asking to the seller to adjust the amount in the account of seller.