Page 99 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 8: Subsidiary Books

9. The Sales Return Book records …………… Notes

(a) the return of goods by the fi rm.
(b) the return of goods by the customers.
(c) the return of assets by the customers.
10. The total of the Purchases Day Book is posted to the …………….
(a) debit of the purchases account.
(b) credit of the sales account.

(c) debit of the sales account.

8.12 Review Questions

1. Illustrate the preparation of records for non cash transactions with suitable examples.
2. What are the different types of trade bills books?
3. Write a short note on the following:

(a) Debit Note
(b) Credit Note
4. Make the proforma of purchase return book and sales return book and explain it.
5. Explain the significance of preparing subsidiary books of accounts.

6. Journalise the following in Journal Proper.

(a) Electricity bill for the month of March 2004 of `20,000 was received on 15 April
2004.
(b) Obsolete stock of ` 30,000 written off.

(c) Mr. A, who owed ` 20,000, was absconding and there is a definite possibility that the
amount will not be realised.
(d) Machinery worth ` 50,00,000 was bought from M/s MNC payable in fi ve equal
annual installments starting from end of the current year
(e) Five computers were bought for ` 1,60,000 from M/s XYZ who accepted three old
computers (worth ` 50,000 in total) in exchange. The balance was payable after six
months.
(f) Advertising expenses paid for ` 100,000 was entirely shown as current year’s
expenses. Actually 25% of such expense relate to the following year.

7. Name the journal in which the following items will be recorded:
(a) Cash purchase of goods ` 25,000
(b) Cash purchase of furniture ` 30,000
(c) Credit sale of goods ` 56,000

(d) Credit sale of furniture ` 27,000
(e) Interest accrued on investment ` 5,000
(f) Bill accepted by a customer ` 7,500

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