12 While preparing Subsidiary Book, match the followings :
I. Credit sale of goods
a. Journal Proper
II. Cash withdrawn for personal use b. Sales Return Book
Credit purchase of an assets
c. Cash Book
IV. Goods return by Debtor
d. Sales Book
Answers
ANSWER :
While preparing Subsidiary Book,
- [I] Credit sale of goods ➨ [d] Sales Book
❒ All the credit sale of goods are recorded in the subsidiary book called Sales Book. Here, goods means the articles which are purchased for resale or processing. Cash sale of goods and sale of fixed assets either in cash or on credit is not recorded in this book.
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- [II] Cash withdrawn for personal use ➨ [c] Cash Book
❒ Cash withdrawn for personal use by the owner of business is known as Drawings and it is recorded in the subsidiary book called Cash Book. This book is meant for recording all cash transactions.
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- [III] Credit purchase of an asset ➨ [a] Journal Proper
❒ When an asset is purchased on credit by the business, it is recorded in the Journal Proper. This book records all those transaction which cannot be conveniently recorded in any other special purpose books of subsidiary books.
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- [IV] Goods return by Debtor ➨ [b] Sales Return Book
❒ When goods are returned by Debtor, it is termed as Sales Return or Return Inward and is recorded in the subsidiary book named Sales Return Book. Sales Return Book is also known as Return Inward Book.