subsidiary books

Introduction 
All the business-related transactions are accounted for in a journal. A journal is sufficient for a small businessman who has a small number of transactions. But in a large business where thousands of transactions occur daily, it is difficult to report all the behaviors in a journal. And it is inconvenient. Thus when books are placed in the place of a journal to account for the behavior, it is called a sub of the journal. It is called dividing. Books in which initial accounts are made by saving the time of subdivision, reduction in disturbances and division of work. They are called Subsidiary Books.




subsidiary books

Subdivisions journal
As mentioned, every behavior is first written in a journal. This method is suitable for a small business. Where there are a small number of transactions. But in a large business, where there are a large number of transactions per day, this method is not convenient. It is a very difficult task in accounting for all the deals in a journal. Keeping this in view, many subsidiary books are kept in a place of a journal in many businesses. These are also called books of early writings. In a big business, these books are

1. Purchase Book
2. Sales Book
3. Purchase Return Book
4. Sales Return Book
5. Cashbook
6. Bills Receivable Book
7. Bills Payable Book
8. Main Journal

1. Purchases book is an account of transactions of goods purchased by the merchant in the purchase book. Goods refer to the goods in which the trader trades. It does not account for the purchase of property lending as it is not considered to be goods. For example, for a furniture dealer, the purchase or sale of a feature is considered as a commodity, whereas for a trader in a piece of furniture, it is considered a purchase property of furniture and not a commodity. To this book. It is also called the invoice book.

Source of accounting: Entries in the purchase book are made from the invoice received, which the seller (creditor) gives on purchasing the borrowed goods. This invoice is of net worth or price list from which the trade discount has been reduced and the expenses paid by the seller are added. Purchase book formats are as follows

The entries in the purchase book are done with the purchase invoice. The method of interpreting the various columns and making entries in them are as follows.

1. Date: In this column, the date of business transactions is written.

2. Particulars: In this column, the name of the seller and the description of the goods purchased are written. Such as a variety number of goods. Weight etc.

3. Invoice no.: In this column, the number of invoices related to the goods purchased is written.

4. Account led page number (ledger folio / L. E): In this column, the page number of the ledger is written, on which page the related accounts are written. Has been circumcised

5. Description of the amount (Date of Amount): The amount of goods in this column is AwareofAmount): The amount of goods is written in this column. If there is a trade discount then it is deducted and the goods. If the purchase expenses have been paid by the seller, then they are added. The description of the purchase of goods is shown in this column as follows -


subsidiary books

Quantity of goods x price per piece = xx
Subtract: trade discount = xx
Add: expenses = xx

6. Total Amount: The amount that comes after the description of the amount is written in this column. Addition of purchase book: The purchase book is added at the end of every month or after a fixed period. The date column is the date of the month on which the purchase book is closed. In the column of details, the purchasing account is written as Name (Purchases A / CDS) and the purchase book is closed.

Illustration 1. Make the entries in the purchase book of Shriram & Sons (Enter the following | transactions in Purchases Book of ShriShayam & Sons) with the following practices:

2000 April
April 1 Bought goods from Anil Computer: 15 icons at Rs. 150. 3500 per day monitor rate Rs. Pricing, B.V. No. 515 (Purchased goods from Anil computers on credit: 15 Mouse @ Rs. 150 each, 20Moniter @ 3500each Inv. No. 515.)

April 12 Bought goods from Ajay Infotech: 20 speakers Rs. 850 Rs 1550 per 10 cabinets Pratnag, trade discount 5: b. C. 1951 (Purchased goods from Ajay Infotech: 20Spker @ Rs. 850 each, 10Cabinate @ Rs. 1550 each, 5% trade Dis. Inv. No. 195)

April 25 Bought goods from Ashish Computech. 30 rem rate 1000 Rs. Per, 25 UPS Rate 2500 Rs. Everyday, 10 motherboards 3250 Rs. Pratnag, 6. Business Discount Cost: Packing Rs. 100 Freight 200 Invoice no. 418 (Purchased goods from Ashish computech: 30 RAM | @ Rs. 1000 each, 25 UPS @ Rs. 2500 each, 10 mother board @ Rs. 3250 each, 6% Trade Discount, Expenses: PackingRs. 100, FreightRs. 200, InvoiceNo . 418)

Solution:
In large businesses where transactions are high, the above purchase book may not be viable. For example if two or more in business. If there are more departments, at any time, the merchant cannot easily get information about the total goods purchased for different departments. The textile seller, whose business is divided into three departments of cotton, silk, and woolen garments, would like to know the different accounts of the purchase of the three departments. It is also necessary to know the benefits received by each department. With this, the trader will get complete information about the activities of the business. This objective can be met in two ways:


subsidiary books
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1. By keeping separate purchase book of the three departments (cotton, silk, woolen) or

2. By keeping separate purchasing columns for each department.

When different types of goods are borrowed, and each item requires different information, then the column purchase book. Is used for. It is not necessary to give details of quantity, rate etc. in the columnar purchase book, because all the details are given in the invoices received from the seller, only the date of transaction, seller's name, invoice number and total amount are written in this columnized purchase book.

Example [Mustration) 2:

Write the following behaviors in the column purchase book of Sanjay Infotech (Enter the following transactions in the Multi-Column Purchases Book of Banarsi Dass):

2002
Purchased April 1 from Abhijeet Infotech, Nagpur _
15 Mouse Rate 150 Rs. per item
20 speaker rate Rs 850 per item

April1 Purchased from Abhijit Infotech Nagpur:
15 Mouse @ Rs. 150 each
20 Speaker @ Rs. 850each
Trade discount @ 12%

Purchased from Apr 5 Ashish Computec, Kanpur:
10 Mouse Rate 150 Rs. per item
15 motherboard rate of 3250 Rs. per item

April5 Purchased from Ashish Computech, Kanpur:
10 Mouse @ Rs. 150each
15 MotherBoard @ Rs. 3250 each
Trade Discount @ 8%

Purchased from Apr 8 Ravi Computers, Kolkata
5 motherboard rate of 3250 Rs. per item
5 speaker rate Rs 850 per item

April8 Purchased from Ravicomputers, Kolkata:
5 motherboard @ Rs. 3250each
5Speaker @ Rs. 850each

April 15 Purchased from Gautam Computers Systems, Hyderabad
4 motherboard rate of 3250 Rs. per item
6 mouse rate of Rs 150 per item

April 15 Purchased from Gotham computers, Haidrabad: 4motherboard @ Rs. 3250 each
6 Mouse @ Rs. 150 each

Purchased furniture from Apr 28 Mumbai Furniture House
5Piece table @ Rs. 150 each

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