Page 74 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes 4. Sales Return Book is known as Sales Return Journal or Return Inwards Book. In the case of
goods sold on credit some goods are being returned by the customers, such goods are
recorded in this book. Here same columns are maintained as in the Purchase Return Book
except Debit Note No. In the place of debit note no., credit note no. is given in this book.
When some goods are returned by the customer, a note is provided to them which is called
credit note. Credit note means that his account has been credited with the amount of goods
return. This credit note works as a debit note for the party receiving back the goods. The
customers debits the account of that party from whom it has been received. Thus

Sends Credit Note
Seller Purchaser
Purchase Debit Note Sends

Proforma of Sales Return Book
Date Credit Note Particulars L.F. Details Amount
No. ( ) ( )

5. Bills Receivable Book is also called the Bills Receivable Journal. When a company receives
various bills from its debtors, details of all these bills are datewise recorded in the Bills
Receivable Book. The proforma of this book is given below:
Proforma of Bills Receivable Book
S.No. Date From whom Date of Period Due Date L.F. Amount
received Bill ( )

6. Bills Payable Book is also known as Bills Payable Journal. When the various bills are
accepted for its various creditors, details of such bills are recorded in this book in
chronological order. The proforma of this book is given below:
Proforma of Bills Payable Book
S.No. Date From whom Date of Period Due Date L.F. Amount
given Bill ( )

Journal Proper

According to the rules of accounting, all the business transactions are recorded into Journal first,
and then they are posted in Ledger. If all the credit and cash transactions are recorded into
Journal, there will be a large number of transactions and it will become too bulky. Therefore,

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