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. To overcome shortcoming of the use of the journal only as a book of original entry SUBSIDIARY BOOKS are used.

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 also made 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.

TYPES OF SUBSIDIARY BOOKS

PURCHASE BOOK PURCHASE RETURNS BOOK
SALES BOOK SALES RETURNS BOOK BILLS RECEIVABLE BOOK BILLS PAYABLE BOOK

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

SALES BOOKS
Books used for recording goods sold on credit.
DATE PARTICULAR OUTWARD INVOICE NO. L.F AMOUNT

PURCHASE RETURN BOOKS

Books used for recording goods returned to the seller.
DATE PARTICULARS
DEBIT NOTES AMOUNT

L.F

SALES RETURN BOOKS

Books used for recording the goods returned by the buyer.
DATE PARTICULARS L.F CREDIT NOTE AMOUNT

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

BILLS PAYABLE BOOK (B/P)

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

TRIAL BALANCE PARTICULARS

CASH A/c CAPITAL A/c BANK A/c GOODS A/c NUTRINE A/c SALES A/c PURCHASE RETURN A/c SALES RETURN A/c FURNITURE A/c PURCHASE M/c A/c STATIONARY A/c TYPEWRITER A/c NEERAJ A/c DRAWING A/c SALARY A/c 2000 15000 12750 5412 2000 2000 2700 800

Dr.
43538

Cr.
125000

6800 100000 25000 34000 5000

Total

191000

191000

Balance Sheet Present The value of a company at a certain point in time. Statement of Assets and Liabilities.

Profit and Loss Statement Measures and reports Profit generated during a certain period. Profit/Loss is an opinion, based on Accounting Principles.

PROFIT AND LOSS STATEMENT Dr. EXPENCES PARTICULAR To PURCHASE GOODS LESS-PURCHASE RETURN INCOME Cr. AMOUNT 34000 2000 32000 63000 AMOUNT PARTICULAR 100000 By SALES 5000 LESS SALES RETURN 95000 DIRECT EXPENCES By GROSS LOSS To SALARY 800 To DRAWING 2700 To STATIONARY 5412 8912 INDIRECT EXPENCES NET LOSS=(G.L.+I.E.)

71912
Dr. AMOUNT 43538 6800 15000 12750 2000 80088

BALANCE SHEET
Cr. PARTICULAR By CAPITAL A/c By NUTRINE By NEERAJ LESS BY NET LOSS LIABILITIES ASSETS AMOUNT PARTICULAR 125000 To CASH A/c 25000 To BANK A/c 2000 To FURNITURE A/c 71912 To M/c A/c To TYPEWRITER A/c 80088