Which subsidiary books are normally used in a business?
Answers
Answer:
Types of Subsidiary Books :
- Purchase Book.
- Sales Book.
- Purchases Return Book.
- Sales Return Book.
- Bills Receivable Book.
- Bills Payable Book.
Answer:
Concept:
Subsidiary Books are books of Original Entry. They are also known as Day Book or special journals. We record transactions of similar nature are in Subsidiary Books.
Find:
Which subsidiary books are normally used in a business?
Given:
Which subsidiary books are normally used in a business?
Explanation:
Subsidiary Books are books of Original Entry. They are also known as Day Book or special journals. We record transactions of similar nature are in Subsidiary Books.
subsidiary books are normally used in a business-
1. Cash Book - It records all the cash and bank receipts and payments. It is a book of original entry as we record transactions in it for the first time from the source documents such as vouchers, invoices, etc.
2. Purchase Book- Purchase Book is a subsidiary book that is used to record all the transactions related to credit purchases. The purchases of the asset are never recorded in the purchase book.
3. Sales Book -The Sales Book records all the transactions related to credit sales. The sales book cannot record the sale of assets.
4. Purchase Return Book - The purchase return book, also known as the return outward book, is used to record transactions of all the returns made to the supplier. A debit note is issued against every return and is recorded in the Purchase Return Book.
5. Sales Return Book- The sales return book records all the transactions related to inward returns. It is also known as a return inward book. When the customer returns goods, a credit note is issued to the customer for every return, and it is recorded in the Sales Return Book.
6. Bills Receivable Book - The Bills Receivable Book records all the transactions of bills drawn in favour of the business. The total of the bills receivable book is posted on the debit side of the Bills Receivable account.
7. Bills Payable Book - The Bills Payable Book records all the transactions related to bills that are drawn on the business and are payable by the business.
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