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SUBSIDIARY BOOKS

Subsidiary Books refers to books meant for specific

transactions of similar nature. Subsidiary Books are

also known as Special journals or day books. Toovercome shortcoming of the use of the journal only

as a book of original entry SUBSIDIARYBOOKS are

used.

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NEED 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 alsomade in the related books so a lot of Information

related to the transaction is easily accessible.

Eases the internal checks

Preliminary record for all entries can be easily

made.

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TYPES OF SUBSIDIARY BOOKS

PURCHASE BOOK

PURCHASE RETURNS BOOK

SALES BOOK

SALES RETURNS BOOK

BILLS RECEIVABLE BOOK

BILLS PAYABLE BOOK

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PURCHASE BOOKS

These are the books used for recording purchases on credit.Things purchased on credit for personal use are not recorded in this

book. It also does not record the fixed assets purchased.

DATE PARTICULAR INVOICE

NO.

L.F AMOUNT

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SALES BOOKSBooks used for recording goods sold on credit.

DATE PARTICULAR OUTWARD INVOICE

NO.

L.F AMOUNT

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PURCHASE RETURN BOOKSBooks used for recording goods returned to the seller.

DATE PARTICULARS L.F

DEBIT

NOTES

AMOUNT

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SALES RETURN BOOKS

Books used for recording the goodsreturned by the buyer.DATE PARTICULARS L.F CREDIT

NOTE

AMOUNT

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BILLS RECEIVABLE BOOKS(B/R)

This is used for the purpose of recording the details of bills

receivable. The individual accounts of parties from whom bills

are received will be credited with the amount in the bills

receivable book.

DATE FROM

WHOM

READ

ACCEPTOR DATE OF

BILLS

TERM DATE OF

MATURITY

WHERE

PAYABLE

AMOUNT HOW

DEPOSED

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BILLS PAYABLE BOOK (B/P)

Thisis used for the purpose of recording the details of billspayable. The individual accounts of the parties to whom the

bills are issued will be debited with the corresponding amount

in the bills payable book. The periodic total is posted to the

credit of bills payable account in the ledger by writing By

Sundries as per Bills Payable Book.

Example:

S.NO. DATE NAME OF

DRAWER

PAYEE DATE OF

BILL

TERM DATE OF

MATURITY

WHERE

PAYABLE

AMOUNT REMARK

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PURCHASE M/c A/c 12750

TRIAL BALANCE

PARTICULARS Dr. Cr.

CASH A/c 43538

CAPITAL A/c 125000

BANK A/c 6800

GOODS A/c 100000

NUTRINE A/c 25000

SALES A/c 34000

PURCHASE RETURN A/c 5000

SALES RETURN A/c 2000

FURNITURE A/c 15000

STATIONARY A/c 5412

TYPEWRITER A/c 2000

NEERAJ A/c 2000

DRAWING A/c 2700

SALARY A/c 800

Total 191000 191000

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Balance Sheet

Present The value of acompany at a certain point in time.

Statement of Assets and Liabilities.

Profit and Loss StatementMeasuresand reports Profit generated during acertain period. Profit/Loss is an opinion,based on Accounting Principles.

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PROFIT AND LOSS STATEMENT

Dr. EXPENCES INCOME Cr.

PARTICULAR AMOUNT PARTICULAR AMOUNT

To PURCHASE GOODS 100000 By SALES 34000

LESS-PURCHASE RETURN 5000 LESS SALES RETURN 200095000 32000

By GROSS LOSS 63000

To SALARY 800

To DRAWING 2700

To STATIONARY 5412

8912

NET LOSS=(G.L.+I.E.) 71912

BALANCE SHEET

Cr. LIABILITIES ASSETS Dr.

PARTICULAR AMOUNT PARTICULAR AMOUNTBy CAPITAL A/c 125000 To CASH A/c 43538

By NUTRINE 25000 To BANK A/c 6800

By NEERAJ 2000 To FURNITURE A/c 15000

LESS BY NET LOSS 71912 To M/c A/c 12750

To TYPEWRITER A/c 200080088 80088

DIRECT EXPENCES

INDIRECT EXPENCES

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