Page 98 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes 8.9 Summary

z Subsidiary books are classified on the basis of transactions viz Cash transactions and Non

cash-transactions.
z The purchases book is known in other words as purchase journal. It is a book meant for
credit purchases only for resale.
z Purchase return book is a book of goods returned to the supplier which are out of credit
purchases.

z Sales book is a book maintained by the enterprise only during the moment of selling the
goods on credit. It is known in other words as a sales journal.
z Sales return is a book that registers the goods sold on credit and received from the buyers.

8.10 Keywords

Non-cash transactions: A Non-cash transaction is a transaction in terms of credit and conditions
of the enterprise.
Purchase book: It is known in other words as purchase journal. It is a book meant for credit
purchases only for resale.
Sales book: It is a book maintained by the enterprise only during the moment of selling the goods
on credit. It is known in other words as a sales journal.
Sales return book: Sales return is a book that registers the goods sold on credit and received from
the buyers.
Subsidiary book: It is a book maintained for routine transactions of the enterprise.

8.11 Self Assessment

State whether the following statements are true or false:

1. Cash sales are recorded in Sales Day Book.
2. Credit sales are recorded in Sales Day Book.
3. Cash and credit sales are recorded in Sales Day Book.
4. Purchase of fixed asset is recorded in the Purchases Day Book.

5. Credit purchase of raw material is recorded in the Purchases day Book.
6. Whenever goods are returned to the supplier, a letter which is known as the credit note.
7. Journal proper is meant for recording all such transactions for which no special journal has
been maintained in the business.

Choose the appropriate answers:
8. The Sales Day Book records ……………………
(a) all sales.
(b) credit sales
(c) cash sales

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