Page 119 - DMGT104_FINANCIAL_ACCOUNTING

Unit 6: Subsidiary Books

4. Compose three columns Cash Book from the following transactions: Notes
2006 ( )
Jan. 1 Cash in hand 567
Jan. 1 Cash at bank 12,675
Jan. 2 Received from Ashish and 7,900
allowed him a discount 100
Jan. 4 Deposited into the bank 5,000
Jan. 6 Furniture purchased for cash 2,500
Jan. 7 Paid to Vikas by cheque 7,800
and received discount 200
Jan. 14 Received from Manish by cheque and Deposited into bank 5,000
Jan.16 Cash Sales 8,000
Jan. 20 Deposited into bank 6,000
Jan. 25 Purchased a Machine and paid by a cheque 12,000
Jan. 26 Paid by cheque to Kishore 1,370
and received discount 30
Jan. 27 Withdrew from bank for office use 2,500
Jan. 28 Purchased goods for cash 5,000
Jan. 29 Paid wages by cheque 4,500
Jan. 31 Paid Rent 500
5. What are the different types of trade bills books?
6. Write a short note on the following:

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

Answers: Self Assessment

1. cash transactions 2. credit side

3. ledger 4. discount
5. petty cash book 6. Invoice
7. Returns Outward Book 8. (d)
9. (c) 10. (b)

LOVELY PROFESSIONAL UNIVERSITY 113