Overview
The previous chapter explained what the subsidiary books are and how each is posted. This chapter is the practical companion: it takes a list of transactions and shows, step by step, how the purchases book, the sales book, the purchase returns book, the sales returns book and the journal proper are actually written up, totalled and posted to the ledger, and how the ledger accounts are then balanced. The emphasis throughout is on the small decisions that decide whether a solution is right: sorting each transaction into the correct book, deducting trade discount before entering the amount, valuing returns at the same net price as the original purchase or sale, keeping assets out of the goods books, keeping cash transactions out of every book but the cash book, and posting individual parties and periodic totals to the correct sides. The chapter also covers the preparation of the bills receivable and bills payable books with due dates, and the handling of items such as freight, packing and taxes shown on an invoice. Several worked illustrations of examination standard are built up in full, ending with a comprehensive example that runs from a month's transactions through all the books to a set of balanced ledger accounts. A student who works through every illustration with pen and paper will be ready for any subsidiary-book question the Intermediate examination sets.
Learning Objectives
- Sort a list of business transactions into the correct subsidiary books and the journal proper.
- Prepare the purchases book from invoices, deducting trade discount and computing net amounts.
- Prepare the sales book with trade discount and post it to customers' accounts and the sales account.
- Prepare the purchase returns and sales returns books from debit notes and credit notes and post them.
- Post the individual entries and periodic totals of each book to the ledger and balance the accounts.
- Record in the journal proper the transactions that do not belong in any special book.
- Prepare the bills receivable and bills payable books, computing due dates with days of grace.
- Treat freight, packing charges and taxes shown on invoices correctly in the subsidiary books.
- Solve a comprehensive problem covering all subsidiary books and the resulting ledger.
Topics in this chapter
12 topics · tap a topic title to jump straight to it.
Sorting Transactions Before Writing Any Book
A subsidiary-book problem in the examination gives a mixed list of transactions and asks for one or more books. The first task, before writing a single line, is to sort the transactions. Students who start writing immediately usually put a cash purchase in the purchases book or an asset in the sales book and lose marks that were easy to earn. The sorting takes a minute and prevents all of that.
Read each transaction and ask three questions in order.
Question 1: Does cash, cheque or bank appear? If yes, the transaction belongs to the cash book and to no other book. It does not matter what the cash was for. Purchased goods for cash, sold goods and received a cheque, paid wages, received cash from a debtor, paid a creditor by cheque: all cash book. In a problem that asks only for the purchases and sales books, such transactions are simply ignored, with a note that they belong to the cash book.
Question 2: Is it goods, or something else? Goods means the articles the firm regularly deals in. A furniture dealer's tables are goods; his delivery van is not. If the transaction is on credit and concerns goods, it goes to one of the four goods books. If it is on credit and concerns an asset, a service, or anything that is not goods, it goes to the journal proper.
Question 3: Is it a purchase, a sale, a return outward or a return inward? Goods bought on credit: purchases book. Goods sold on credit: sales book. Goods sent back to a supplier: purchase returns book. Goods received back from a customer: sales returns book.
Bills of exchange, when they appear, go to the bills receivable book (bill received from a customer) or the bills payable book (bill accepted in favour of a supplier).
Reading the wording. A transaction that names a party and does not mention cash is a credit transaction: Purchased goods from Anand Rs 8,000 is a credit purchase. Purchased goods Rs 8,000 with no name is treated as a cash purchase. Sold goods to Kavitha for cash is a cash sale, and Kavitha's account is not used. Words like returned goods to, sent back, rejected and returned point to a purchase return; returned goods by, received back, and returned by point to a sales return.
A sorted list. Take the following transactions of Sri Venkateswara Traders, dealers in electrical goods, for July 2026:
| Date | Transaction | Book |
| Jul 1 | Purchased from Surya Electricals 40 fans @ Rs 1,500, trade discount 10% | Purchases book |
| Jul 3 | Sold to Ramesh Stores 10 fans @ Rs 2,000 | Sales book |
| Jul 5 | Purchased goods for cash Rs 5,000 | Cash book |
| Jul 7 | Returned 4 fans to Surya Electricals | Purchase returns book |
| Jul 9 | Purchased office furniture from Steel Furnitures on credit Rs 12,000 | Journal proper |
| Jul 12 | Sold to Lakshmi Agencies 20 tube lights @ Rs 300, trade discount 5% | Sales book |
| Jul 15 | Ramesh Stores returned 2 fans | Sales returns book |
| Jul 20 | Sold old computer to Naresh on credit Rs 6,000 | Journal proper |
| Jul 25 | Paid Surya Electricals by cheque Rs 40,000 | Cash book |
Once the list is sorted in this way, writing each book is a matter of copying the relevant lines with their amounts, which the following topics show.
- Purchased goods from Anand Rs 8,000: purchases book. Purchased goods from Anand for cash Rs 8,000: cash book. Purchased a typewriter from Anand on credit Rs 8,000: journal proper.
- Sold goods to Kavitha Rs 3,000: sales book. Kavitha returned goods Rs 500: sales returns book. Received cash from Kavitha Rs 2,500: cash book.
- Cash or bank mentioned → cash book; credit + goods → goods books; credit + not goods → journal proper
Preparing the Purchases Book with Trade Discount
The purchases book is written from the inward invoices. Each entry needs the date, the supplier's name and address, the quantity and description of goods, the rate, the gross amount, the trade discount deducted and the net amount. Only the net amount goes into the amount column; the gross amount and discount go into the details column as working.
Computing trade discount. Trade discount is a percentage of the gross invoice value. Gross value = quantity × rate. Trade discount = gross value × rate of discount. Net amount = gross value − trade discount. If several items appear on one invoice, add the gross values of all the items first and deduct the trade discount from the total, unless the question gives a different discount for each item.
Illustration. Prepare the purchases book of Sri Venkateswara Traders from these July 2026 invoices:
- Jul 1: Surya Electricals, Hyderabad, invoice 512: 40 fans @ Rs 1,500, trade discount 10%.
- Jul 10: Bajaj Distributors, Secunderabad, invoice 88: 100 tube lights @ Rs 200 and 50 bulbs @ Rs 40, trade discount 5%.
- Jul 18: Surya Electricals, invoice 540: 20 mixers @ Rs 2,500, trade discount 10%.
- Jul 24: Purchased 10 fans for cash from Kumar Electricals @ Rs 1,400. (Cash purchase; not entered.)
- Jul 28: Purchased a showcase from Steel Furnitures on credit Rs 12,000. (Asset; journal proper.)
| Date | Particulars | Inv. No. | L.F. | Details Rs | Amount Rs |
| 2026 Jul 1 | Surya Electricals, Hyderabad 40 fans @ Rs 1,500 Less: Trade discount 10% | 512 | 60,000 6,000 | 54,000 | |
| Jul 10 | Bajaj Distributors, Secunderabad 100 tube lights @ Rs 200 = 20,000 50 bulbs @ Rs 40 = 2,000 Less: Trade discount 5% | 88 | 22,000 1,100 | 20,900 | |
| Jul 18 | Surya Electricals, Hyderabad 20 mixers @ Rs 2,500 Less: Trade discount 10% | 540 | 50,000 5,000 | 45,000 | |
| Jul 31 | Purchases A/c Dr | 1,19,900 |
The total, Rs 1,19,900, is labelled Purchases A/c Dr in many textbooks to remind the clerk where it is posted. The cash purchase of 24 July and the showcase of 28 July are correctly excluded; in an examination answer, a short note stating that they belong to the cash book and the journal proper respectively earns the marks for recognising them.
Checking the arithmetic. Before totalling, re-add each invoice: 40 × 1,500 = 60,000; 10 per cent of 60,000 = 6,000; net 54,000. 100 × 200 + 50 × 40 = 22,000; 5 per cent = 1,100; net 20,900. 20 × 2,500 = 50,000; 10 per cent = 5,000; net 45,000. Total 54,000 + 20,900 + 45,000 = 1,19,900. A wrong net amount on one invoice makes both the supplier's balance and the purchases total wrong, so the discount arithmetic deserves care.
The invoice number column takes the supplier's own invoice number, which is why the numbers 512, 88 and 540 are not in sequence. In the sales book, by contrast, the firm's own outward invoice numbers run in sequence.
- Invoice for 25 heaters @ Rs 1,200 with 8 per cent trade discount: gross 30,000; discount 2,400; net Rs 27,600 entered in the purchases book.
- Invoice with two items, 30 irons @ Rs 800 and 10 kettles @ Rs 600, trade discount 10 per cent on the whole: gross 24,000 + 6,000 = 30,000; discount 3,000; net Rs 27,000.
- Gross value = Quantity × Rate
- Trade discount = Gross value × Rate of discount
- Net amount entered = Gross value − Trade discount
Posting the Purchases Book to the Ledger
Once the purchases book for the month is complete, it is posted in two stages: the individual suppliers daily (or as each invoice is entered) and the total at the month end.
Stage 1: Suppliers' accounts. Each supplier is credited with the net amount of each invoice. Surya Electricals has two invoices, so its account receives two credits.
| Surya Electricals Account | |||||
| Dr | Cr | ||||
| 2026 Jul 1 | By Purchases A/c | 54,000 | |||
| Jul 18 | By Purchases A/c | 45,000 | |||
| Bajaj Distributors Account | |||||
| Jul 10 | By Purchases A/c | 20,900 | |||
The words By Purchases A/c on the credit side of a personal account tell the reader that the credit arose from a purchase of goods. The L.F. column of the purchases book is filled in with the ledger page of each supplier as the posting is done.
Stage 2: Purchases account. The monthly total is debited to purchases account in one line.
| Purchases Account | |||||
| 2026 Jul 31 | To Sundries as per Purchases Book | 1,19,900 | |||
The word Sundries stands for the various suppliers whose invoices make up the total. Some firms write To Sundry Creditors instead; either is acceptable. The important thing is that the debit to purchases account, Rs 1,19,900, equals the sum of the credits to suppliers, 54,000 + 45,000 + 20,900 = 1,19,900. Double entry is complete.
What the ledger now shows. Surya Electricals is a creditor for Rs 99,000 and Bajaj Distributors for Rs 20,900; those are the amounts the firm owes at the end of July, before any payments or returns. Purchases account shows the credit purchases of the month. If the cash purchase of Rs 14,000 on 24 July is posted from the cash book, purchases account will carry a second debit, To Cash 14,000, and total purchases for July will be Rs 1,33,900. This is how the purchases account comes to show both credit and cash purchases while the purchases book shows only credit purchases.
A common error in posting. Students sometimes post each supplier to the debit side, reasoning that goods have been received. The receiving of goods is recorded by the debit to purchases account; the supplier is the giver and is credited. Another error is to post the total of the purchases book to the credit of purchases account, which would double the credit side and leave nothing on the debit. The rule of the previous chapter settles it: the party is posted with each entry on the side the personal-account rule dictates; the total is posted to the nominal account on the side its nature dictates. Purchases is an expense, so its total is a debit.
- Surya Electricals: two credits of 54,000 and 45,000; balance Rs 99,000 credit, a creditor.
- Purchases account: To Sundries 1,19,900 from the purchases book, and To Cash 14,000 from the cash book; total July purchases Rs 1,33,900.
- Sum of credits to suppliers = Debit to purchases account = Total of purchases book
- Total purchases in the ledger = Purchases book total + Cash purchases from the cash book
Preparing and Posting the Sales Book
The sales book is written from the copies of outward invoices, in the same way as the purchases book but with the customer's name and the firm's own serial invoice numbers. Trade discount allowed to customers is deducted in the details column and only the net amount is carried across.
Illustration. Sri Venkateswara Traders made these sales in July 2026:
- Jul 3: Sold to Ramesh Stores, Warangal, 10 fans @ Rs 2,000, invoice 101.
- Jul 12: Sold to Lakshmi Agencies, Khammam, 20 tube lights @ Rs 300 and 20 bulbs @ Rs 60, trade discount 5%, invoice 102.
- Jul 16: Sold 5 fans for cash to a walk-in customer @ Rs 2,000. (Cash sale; cash book.)
- Jul 20: Sold old computer to Naresh on credit Rs 6,000. (Asset; journal proper.)
- Jul 26: Sold to Ramesh Stores 8 mixers @ Rs 3,200, trade discount 10%, invoice 103.
| Date | Particulars | Inv. No. | L.F. | Details Rs | Amount Rs |
| 2026 Jul 3 | Ramesh Stores, Warangal 10 fans @ Rs 2,000 | 101 | 20,000 | ||
| Jul 12 | Lakshmi Agencies, Khammam 20 tube lights @ Rs 300 = 6,000 20 bulbs @ Rs 60 = 1,200 Less: Trade discount 5% | 102 | 7,200 360 | 6,840 | |
| Jul 26 | Ramesh Stores, Warangal 8 mixers @ Rs 3,200 Less: Trade discount 10% | 103 | 25,600 2,560 | 23,040 | |
| Jul 31 | Sales A/c Cr | 49,880 |
Posting. Each customer is debited with each invoice, and the total is credited to sales account.
| Ramesh Stores Account | |||||
| 2026 Jul 3 | To Sales A/c | 20,000 | |||
| Jul 26 | To Sales A/c | 23,040 | |||
| Lakshmi Agencies Account | |||||
| Jul 12 | To Sales A/c | 6,840 | |||
| Sales Account | |||||
| 2026 Jul 31 | By Sundries as per Sales Book | 49,880 | |||
Debits to customers: 20,000 + 23,040 + 6,840 = 49,880, equal to the credit to sales account. The cash sale of Rs 10,000 on 16 July will reach sales account from the cash book as By Cash 10,000, making total July sales Rs 59,880. The sale of the computer to Naresh goes through the journal proper as Naresh A/c Dr 6,000, To Computer A/c 6,000 (ignoring any profit or loss on sale for the moment); it never touches sales account, because sales account is for goods only.
Two reminders. First, the words To Sales A/c on the debit side of a customer's account mean the debit arose from a sale of goods; a student who writes To Ramesh Stores on Ramesh Stores' own account has confused the account with its counterpart. Second, the sales book total is labelled Sales A/c Cr as a reminder of its destination, just as the purchases book total is labelled Purchases A/c Dr.
- Invoice 103: 8 mixers @ Rs 3,200 = 25,600; less 10 per cent = 2,560; net Rs 23,040 debited to Ramesh Stores.
- Ramesh Stores' balance after July sales = 20,000 + 23,040 = Rs 43,040 debit, a debtor.
- Sum of debits to customers = Credit to sales account = Total of sales book
- Total sales in the ledger = Sales book total + Cash sales from the cash book
Preparing and Posting the Purchase Returns Book
When goods bought on credit are sent back, the firm prepares a debit note and enters it in the purchase returns book. The value of the return is calculated at the same net rate at which the goods were bought: the same list price and the same rate of trade discount. This is the point at which students most often go wrong, entering the return at list price and thereby debiting the supplier with more than he was originally credited.
Illustration. In July 2026 Sri Venkateswara Traders returned:
- Jul 7: 4 fans to Surya Electricals out of the 40 bought on 1 July @ Rs 1,500 less 10%, found defective; debit note 21.
- Jul 14: 10 bulbs to Bajaj Distributors out of those bought on 10 July @ Rs 40 less 5%, broken in transit; debit note 22.
- Jul 22: 2 mixers to Surya Electricals out of those bought on 18 July @ Rs 2,500 less 10%, wrong model; debit note 23.
| Date | Particulars | D.N. No. | L.F. | Details Rs | Amount Rs |
| 2026 Jul 7 | Surya Electricals, Hyderabad 4 fans @ Rs 1,500 (defective) Less: Trade discount 10% | 21 | 6,000 600 | 5,400 | |
| Jul 14 | Bajaj Distributors, Secunderabad 10 bulbs @ Rs 40 (broken) Less: Trade discount 5% | 22 | 400 20 | 380 | |
| Jul 22 | Surya Electricals, Hyderabad 2 mixers @ Rs 2,500 (wrong model) Less: Trade discount 10% | 23 | 5,000 500 | 4,500 | |
| Jul 31 | Purchase Returns A/c Cr | 10,280 |
Posting. Each supplier is debited with the return, and the total is credited to purchase returns account.
| Surya Electricals Account (continued) | |||||
| 2026 Jul 7 | To Purchase Returns A/c | 5,400 | Jul 1 | By Purchases A/c | 54,000 |
| Jul 22 | To Purchase Returns A/c | 4,500 | Jul 18 | By Purchases A/c | 45,000 |
| Purchase Returns Account | |||||
| 2026 Jul 31 | By Sundries as per Purchase Returns Book | 10,280 | |||
Surya Electricals' account now has debits of 9,900 against credits of 99,000, leaving Rs 89,100 owing before any payment. Bajaj Distributors has a debit of 380 against a credit of 20,900, leaving Rs 20,520. The debits to suppliers, 5,400 + 380 + 4,500 = 10,280, equal the credit to purchase returns account.
Checking the return value against the purchase. For the fans: 40 fans were bought for Rs 54,000 net, that is Rs 1,350 each net; 4 fans returned at Rs 1,350 = Rs 5,400. For the mixers: 20 for Rs 45,000 net, Rs 2,250 each; 2 returned = Rs 4,500. For the bulbs: Rs 40 less 5 per cent = Rs 38 each; 10 returned = Rs 380. Working out the net unit price is a quick check that the return has been valued correctly.
Debit notes are numbered in the firm's own sequence (21, 22, 23), and the reason for return is noted in the particulars column, which is useful when disputes arise with the supplier.
- Returned 3 heaters bought @ Rs 1,200 less 8 per cent: return value 3 × 1,200 = 3,600; less 288; Rs 3,312.
- Net unit price of a fan bought @ Rs 1,500 less 10 per cent = Rs 1,350; 4 fans returned = Rs 5,400.
- Return value = Quantity returned × Rate − Trade discount at the original rate = Quantity returned × Net unit price
- Sum of debits to suppliers = Credit to purchase returns account
Preparing and Posting the Sales Returns Book
Goods returned by credit customers are accepted, a credit note is issued, and the return is entered in the sales returns book at the net price at which the goods were sold, deducting the same trade discount that was allowed on the sale.
Illustration. In July 2026 the following goods came back to Sri Venkateswara Traders:
- Jul 15: Ramesh Stores returned 2 fans out of the 10 sold on 3 July @ Rs 2,000, no trade discount; credit note 11.
- Jul 19: Lakshmi Agencies returned 5 tube lights out of those sold on 12 July @ Rs 300 less 5%, defective; credit note 12.
- Jul 29: Ramesh Stores returned 1 mixer out of those sold on 26 July @ Rs 3,200 less 10%; credit note 13.
| Date | Particulars | C.N. No. | L.F. | Details Rs | Amount Rs |
| 2026 Jul 15 | Ramesh Stores, Warangal 2 fans @ Rs 2,000 | 11 | 4,000 | ||
| Jul 19 | Lakshmi Agencies, Khammam 5 tube lights @ Rs 300 (defective) Less: Trade discount 5% | 12 | 1,500 75 | 1,425 | |
| Jul 29 | Ramesh Stores, Warangal 1 mixer @ Rs 3,200 Less: Trade discount 10% | 13 | 3,200 320 | 2,880 | |
| Jul 31 | Sales Returns A/c Dr | 8,305 |
Posting. Each customer is credited with the return, and the total is debited to sales returns account.
| Ramesh Stores Account (continued) | |||||
| 2026 Jul 3 | To Sales A/c | 20,000 | Jul 15 | By Sales Returns A/c | 4,000 |
| Jul 26 | To Sales A/c | 23,040 | Jul 29 | By Sales Returns A/c | 2,880 |
| Lakshmi Agencies Account (continued) | |||||
| Jul 12 | To Sales A/c | 6,840 | Jul 19 | By Sales Returns A/c | 1,425 |
| Sales Returns Account | |||||
| 2026 Jul 31 | To Sundries as per Sales Returns Book | 8,305 | |||
Credits to customers: 4,000 + 1,425 + 2,880 = 8,305, equal to the debit to sales returns account. Ramesh Stores now owes 43,040 − 6,880 = Rs 36,160; Lakshmi Agencies owes 6,840 − 1,425 = Rs 5,415.
Returns by cash customers. If the walk-in customer who bought 5 fans for cash on 16 July returned one and was refunded Rs 2,000, that would not be entered in the sales returns book. The refund is a cash payment: cash book, credit side, By Sales Returns A/c Rs 2,000, and sales returns account would be debited from the cash book. The sales returns book is for credit customers only, because only a credit customer has an account to be credited.
Allowances. If instead of returning the defective tube lights Lakshmi Agencies had kept them and been allowed a reduction of Rs 500, a credit note for Rs 500 would be issued and entered in the sales returns book in the same way, with the narration allowance for defective goods. The customer's account is credited and sales returns (or an allowances account) debited.
- 1 mixer sold @ Rs 3,200 less 10 per cent: net Rs 2,880 credited to Ramesh Stores on return.
- Ramesh Stores' balance after returns: 43,040 − 4,000 − 2,880 = Rs 36,160 debit.
- Sum of credits to customers = Debit to sales returns account = Total of sales returns book
- Customer's balance = Sales to him − Returns by him − Cash and discount received from him
Freight, Packing, Taxes and Other Items on Invoices
Real invoices are rarely as simple as quantity times rate less discount. They often include charges for packing and forwarding, freight or carriage, insurance, and taxes such as GST. A student must know how to treat each, because an examination problem may include one or two of them.
Packing and forwarding charges. When the supplier adds packing charges to the invoice, they are added after trade discount is deducted, and the total including packing is the amount payable to the supplier and therefore the amount credited to him. In the purchases book, the amount column shows the total payable. For the purpose of purchases account, some firms debit the packing separately to a carriage inward or packing account rather than to purchases; but in the purchases book the simplest and most common treatment is to include it in the amount column, and a separate column can be added if the firm wants to analyse it. Trade discount is never allowed on packing or freight; it is allowed on the goods only.
Freight or carriage. If the supplier pays the freight and charges it on the invoice, it is treated like packing: added after trade discount, included in the amount owed to the supplier. If the firm pays the freight itself to the transporter in cash, it goes through the cash book as carriage inward and does not touch the purchases book at all.
GST and other taxes. Goods and Services Tax is charged on the value after trade discount and is added to the invoice. The buyer pays the tax to the supplier, so the supplier is credited with the total including tax. Because the tax paid on purchases can be set off against tax collected on sales, a business records it in a separate input tax account rather than in purchases. In a purchases book, this is done by adding columns: one for the value of goods (posted to purchases account), one for the tax (posted to input GST account) and one for the total (credited to the supplier). In the sales book the mirror columns are value of goods (credited to sales), output GST (credited to output GST account) and total (debited to the customer). At the introductory level a problem that mentions tax should be handled with these extra columns; a problem that does not mention tax should not have tax invented into it.
Illustration with packing and tax. Purchased from Deccan Appliances 10 geysers @ Rs 4,000, trade discount 10 per cent, packing Rs 500, GST 18 per cent on the value of goods.
| 10 geysers @ Rs 4,000 | 40,000 |
| Less: Trade discount 10% | 4,000 |
| Value of goods | 36,000 |
| Add: GST 18% on 36,000 | 6,480 |
| Add: Packing charges | 500 |
| Invoice total (credited to Deccan Appliances) | 42,980 |
In a purchases book with analysis columns: goods 36,000 (to purchases account), GST 6,480 (to input GST account), packing 500 (to packing or carriage inward account), total 42,980 (to Deccan Appliances). The postings add up: 36,000 + 6,480 + 500 = 42,980.
Cash discount on the invoice. Some invoices state terms such as 2 per cent cash discount if paid within 15 days. This is not deducted in the purchases book; it is only a possibility. If the firm does pay within 15 days, the discount is recorded in the cash book at the time of payment. The purchases book always shows the full amount payable before cash discount.
Returns involving these items. When goods are returned, the return is valued at the net price of goods plus the proportionate tax; packing and freight already incurred are usually not refunded unless the supplier agrees.
- Goods Rs 36,000 net, GST 18 per cent Rs 6,480, packing Rs 500: supplier credited Rs 42,980; purchases debited Rs 36,000; input GST debited Rs 6,480; packing debited Rs 500.
- Freight of Rs 800 paid in cash to the transporter for goods received: cash book, By Carriage Inward 800; nothing in the purchases book.
- Invoice total = (Gross value − Trade discount) + Tax on net value + Packing/Freight charged by supplier
- Trade discount applies to goods only, never to packing, freight or tax
Preparing the Journal Proper
After the goods books have absorbed all credit purchases, sales and returns of goods, and the cash book all cash and bank transactions, a residue remains. The journal proper takes it. In a subsidiary-book problem, the journal proper entries are written in the ordinary journal form with narrations, and each is posted individually to both accounts.
Illustration. From the July 2026 transactions of Sri Venkateswara Traders, the following belong to the journal proper:
- Jul 9: Purchased office furniture from Steel Furnitures on credit Rs 12,000.
- Jul 20: Sold old computer (book value Rs 6,000) to Naresh on credit for Rs 6,000.
- Jul 28: Purchased a showcase from Steel Furnitures on credit Rs 12,000.
- Jul 30: Goods costing Rs 1,500 taken by the proprietor for personal use.
- Jul 31: Kishore, who owed Rs 2,000 from last year, is declared insolvent; nothing recoverable.
- Jul 31: Depreciation on furniture Rs 400 for the month.
| Date | Particulars | L.F. | Dr Rs | Cr Rs |
| 2026 Jul 9 | Furniture A/c Dr To Steel Furnitures A/c (Being office furniture bought on credit) | 12,000 | 12,000 | |
| Jul 20 | Naresh A/c Dr To Computer A/c (Being old computer sold on credit at book value) | 6,000 | 6,000 | |
| Jul 28 | Furniture A/c Dr To Steel Furnitures A/c (Being showcase bought on credit) | 12,000 | 12,000 | |
| Jul 30 | Drawings A/c Dr To Purchases A/c (Being goods withdrawn by proprietor) | 1,500 | 1,500 | |
| Jul 31 | Bad Debts A/c Dr To Kishore A/c (Being amount due from Kishore written off) | 2,000 | 2,000 | |
| Jul 31 | Depreciation A/c Dr To Furniture A/c (Being depreciation for July) | 400 | 400 |
Posting. Furniture account is debited To Steel Furnitures 12,000 twice and credited By Depreciation 400; Steel Furnitures is credited By Furniture 12,000 twice, a creditor for Rs 24,000; Naresh is debited To Computer 6,000; computer account is credited By Naresh 6,000; drawings is debited To Purchases 1,500; purchases account is credited By Drawings 1,500 (reducing the purchases total); bad debts is debited To Kishore 2,000; Kishore is credited By Bad Debts 2,000, closing his account; depreciation is debited To Furniture 400.
Why these do not go elsewhere. Steel Furnitures supplied furniture, not goods, so the purchases book would be wrong even though it is a credit purchase from a supplier. Naresh bought an asset, so the sales book would be wrong even though it is a credit sale to a customer. The goods withdrawn did not go to any outside party. Kishore's bad debt and the depreciation involve no purchase, sale, bill or cash. Each of these has a home only in the journal proper.
When a problem asks for all the subsidiary books, the journal proper is usually the last one written, because the transactions it contains are those left over after the sorting. Writing it last also reduces the risk of entering a transaction twice.
- Sold an old delivery van to Rao on credit for Rs 80,000, book value Rs 1,00,000: Rao A/c Dr 80,000; Loss on Sale of Van A/c Dr 20,000; To Van A/c 1,00,000, in the journal proper.
- Goods worth Rs 2,000 given as free samples: Advertisement A/c Dr 2,000; To Purchases A/c 2,000.
Preparing the Bills Receivable and Bills Payable Books
Where a problem includes bills of exchange, the two bills books are prepared. Each entry is made on the day the bill is received or accepted, and the due date is calculated by adding the term of the bill and three days of grace.
Calculating the due date. For a bill after date, count the term from the date of the bill. For a term in months, go to the same day of the month the term ends; if that month has no such day, take its last day. Then add three days of grace. A bill dated 10 July for 2 months: 10 September, plus 3 days, due 13 September. A bill dated 31 August for 1 month: 30 September is the last day of September, plus 3 days, due 3 October. For a term in days, count the exact days, excluding the date of the bill. A bill dated 10 July for 60 days: 21 days left in July, 31 in August, 8 in September makes 60, so 8 September, plus 3 days, due 11 September. If the due date falls on a public holiday, the bill is due on the preceding working day; if on an unforeseen holiday, on the following working day.
Illustration: bills receivable book. In July 2026 the firm received: Jul 5, a 2-month bill from Ramesh Stores for Rs 20,000; Jul 20, a 60-day bill from Lakshmi Agencies for Rs 5,000.
| No. | Date recd. | Received from | Acceptor | Date of bill | Term | Due date | L.F. | Amount Rs | Disposal |
| 1 | Jul 5 | Ramesh Stores | Ramesh Stores | Jul 5 | 2 months | Sep 8 | 20,000 | ||
| 2 | Jul 20 | Lakshmi Agencies | Lakshmi Agencies | Jul 20 | 60 days | Sep 21 | 5,000 | ||
| Total | 25,000 |
Due date check for bill 2: 20 July + 60 days: 11 days remain in July, 31 in August brings 42, 18 in September brings 60, so 18 September, plus 3 days of grace, 21 September.
Posting: Ramesh Stores credited By Bills Receivable 20,000; Lakshmi Agencies credited By Bills Receivable 5,000; bills receivable account debited To Sundries 25,000.
Illustration: bills payable book. In July the firm accepted: Jul 8, a 3-month bill drawn by Surya Electricals for Rs 50,000; Jul 25, a 1-month bill drawn by Bajaj Distributors for Rs 10,000.
| No. | Date accepted | Given to | Drawer | Date of bill | Term | Due date | L.F. | Amount Rs | Disposal |
| 1 | Jul 8 | Surya Electricals | Surya Electricals | Jul 8 | 3 months | Oct 11 | 50,000 | ||
| 2 | Jul 25 | Bajaj Distributors | Bajaj Distributors | Jul 25 | 1 month | Aug 28 | 10,000 | ||
| Total | 60,000 |
Posting: Surya Electricals debited To Bills Payable 50,000; Bajaj Distributors debited To Bills Payable 10,000; bills payable account credited By Sundries 60,000.
The effect on the personal accounts is to convert part of an open balance into a bill. Surya Electricals, who was owed Rs 89,100 after returns, is now owed Rs 39,100 on open account and Rs 50,000 by bill. When the bill is paid on 11 October the cash book will show By Bills Payable 50,000, and the bills payable book will note Paid in its disposal column.
- Bill dated 15 March for 3 months: 15 June + 3 days = 18 June.
- Bill dated 30 January for 1 month: last day of February (28 or 29) + 3 days = 3 March (2 March in a leap year).
- Bill dated 1 May for 45 days: 30 days left in May, 15 in June = 15 June, + 3 days = 18 June.
- Due date = Date of bill + Term + 3 days of grace
- Bills receivable book: debtor credited, total debited to bills receivable account; Bills payable book: creditor debited, total credited to bills payable account
Comprehensive Illustration: All Books from One Month's Transactions
The pieces are now assembled into one problem of examination length. Prepare the purchases book, sales book, purchase returns book, sales returns book and journal proper of Anand Traders, dealers in stationery, for August 2026, from the following:
- Aug 1: Bought from Prabhat Paper Mills 500 reams of paper @ Rs 200, trade discount 10%.
- Aug 3: Sold to Modern School 100 reams @ Rs 260.
- Aug 5: Bought for cash 50 reams @ Rs 190.
- Aug 6: Returned 20 reams to Prabhat Paper Mills, damaged.
- Aug 8: Sold to City Book Depot 150 reams @ Rs 250, trade discount 4%.
- Aug 10: Modern School returned 5 reams.
- Aug 12: Bought from Camlin Agencies 200 boxes of pens @ Rs 120, trade discount 5%.
- Aug 15: Bought a computer from Digital World on credit Rs 45,000.
- Aug 18: Sold to Modern School 50 boxes of pens @ Rs 150.
- Aug 20: City Book Depot returned 10 reams.
- Aug 22: Sold for cash 30 boxes of pens @ Rs 150.
- Aug 25: Returned 10 boxes of pens to Camlin Agencies.
- Aug 28: Goods costing Rs 800 given as free samples.
- Aug 31: Wrote off Rs 1,200 due from Suresh as bad debt.
Purchases book
| Aug 1 | Prabhat Paper Mills: 500 reams @ 200 = 1,00,000 less 10% 10,000 | 90,000 |
| Aug 12 | Camlin Agencies: 200 boxes @ 120 = 24,000 less 5% 1,200 | 22,800 |
| Aug 31 | Purchases A/c Dr | 1,12,800 |
Sales book
| Aug 3 | Modern School: 100 reams @ 260 | 26,000 |
| Aug 8 | City Book Depot: 150 reams @ 250 = 37,500 less 4% 1,500 | 36,000 |
| Aug 18 | Modern School: 50 boxes @ 150 | 7,500 |
| Aug 31 | Sales A/c Cr | 69,500 |
Purchase returns book
| Aug 6 | Prabhat Paper Mills: 20 reams @ 200 = 4,000 less 10% 400 | 3,600 |
| Aug 25 | Camlin Agencies: 10 boxes @ 120 = 1,200 less 5% 60 | 1,140 |
| Aug 31 | Purchase Returns A/c Cr | 4,740 |
Sales returns book
| Aug 10 | Modern School: 5 reams @ 260 | 1,300 |
| Aug 20 | City Book Depot: 10 reams @ 250 = 2,500 less 4% 100 | 2,400 |
| Aug 31 | Sales Returns A/c Dr | 3,700 |
Journal proper
| Aug 15 | Computer A/c Dr 45,000; To Digital World A/c 45,000 (computer bought on credit) |
| Aug 28 | Advertisement A/c Dr 800; To Purchases A/c 800 (goods given as free samples) |
| Aug 31 | Bad Debts A/c Dr 1,200; To Suresh A/c 1,200 (debt written off) |
Cash book items (not required, noted): Aug 5 cash purchase Rs 9,500; Aug 22 cash sale Rs 4,500.
Every transaction has found exactly one home. The computer went to the journal proper because it is an asset; the cash purchase and cash sale were kept out of the goods books; the free samples and the bad debt, involving neither cash nor goods sold, went to the journal proper. The next topic posts these books to the ledger and balances the accounts.
- City Book Depot invoice: 150 × 250 = 37,500; less 4 per cent = 1,500; net Rs 36,000.
- City Book Depot return: 10 × 250 = 2,500; less 4 per cent = 100; net Rs 2,400, the same net unit price of Rs 240 as the sale.
- Each transaction goes to exactly one book; a transaction found in two books has been double-counted
Comprehensive Illustration: Posting and Balancing the Ledger
The books prepared for Anand Traders are now posted, and the personal accounts and the main nominal accounts are balanced as at 31 August 2026. Cash book postings for the two cash transactions are included so that purchases and sales accounts are complete.
| Prabhat Paper Mills Account | |||||
| Aug 6 | To Purchase Returns | 3,600 | Aug 1 | By Purchases | 90,000 |
| Aug 31 | To Balance c/d | 86,400 | |||
| 90,000 | 90,000 | ||||
| Sep 1 | By Balance b/d | 86,400 | |||
| Camlin Agencies Account | |||||
| Aug 25 | To Purchase Returns | 1,140 | Aug 12 | By Purchases | 22,800 |
| Aug 31 | To Balance c/d | 21,660 | |||
| 22,800 | 22,800 | ||||
| Sep 1 | By Balance b/d | 21,660 | |||
| Modern School Account | |||||
| Aug 3 | To Sales | 26,000 | Aug 10 | By Sales Returns | 1,300 |
| Aug 18 | To Sales | 7,500 | Aug 31 | By Balance c/d | 32,200 |
| 33,500 | 33,500 | ||||
| Sep 1 | To Balance b/d | 32,200 | |||
| City Book Depot Account | |||||
| Aug 8 | To Sales | 36,000 | Aug 20 | By Sales Returns | 2,400 |
| Aug 31 | By Balance c/d | 33,600 | |||
| 36,000 | 36,000 | ||||
| Sep 1 | To Balance b/d | 33,600 | |||
| Digital World Account | |||||
| Aug 15 | By Computer | 45,000 | |||
| Purchases Account | |||||
| Aug 5 | To Cash | 9,500 | Aug 28 | By Advertisement | 800 |
| Aug 31 | To Sundries (Purchases Book) | 1,12,800 | Aug 31 | By Balance c/d | 1,21,500 |
| 1,22,300 | 1,22,300 | ||||
| Sales Account | |||||
| Aug 31 | To Balance c/d | 74,000 | Aug 22 | By Cash | 4,500 |
| Aug 31 | By Sundries (Sales Book) | 69,500 | |||
| 74,000 | 74,000 | ||||
| Purchase Returns Account | |||||
| Aug 31 | By Sundries (Purchase Returns Book) | 4,740 | |||
| Sales Returns Account | |||||
| Aug 31 | To Sundries (Sales Returns Book) | 3,700 | |||
Other accounts: Computer Dr 45,000; Advertisement Dr 800; Bad Debts Dr 1,200; Suresh Cr 1,200 (which closes his opening debit balance of 1,200).
Reading the result. Creditors at 31 August: Prabhat Paper Mills Rs 86,400, Camlin Agencies Rs 21,660, Digital World Rs 45,000. Debtors: Modern School Rs 32,200, City Book Depot Rs 33,600. Net purchases of goods for the month = 1,21,500 − 4,740 = Rs 1,16,760; net sales = 74,000 − 3,700 = Rs 70,300. These are the figures that will flow into the trading account.
Checking the postings. Each book's total equals the sum of its individual postings: purchases book 90,000 + 22,800 = 1,12,800; sales book 26,000 + 36,000 + 7,500 = 69,500; purchase returns 3,600 + 1,140 = 4,740; sales returns 1,300 + 2,400 = 3,700. If any of these fail to agree, the error is in that book, which is exactly the localisation advantage of subsidiary books.
- Prabhat Paper Mills' balance = 90,000 − 3,600 = Rs 86,400 credit.
- Net sales for August = (69,500 credit sales + 4,500 cash sales) − 3,700 returns = Rs 70,300.
- Net purchases = Purchases (credit + cash) − Goods used for other purposes − Purchase returns
- Net sales = Sales (credit + cash) − Sales returns
Examination Technique and Common Mistakes
Subsidiary-book questions are among the most predictable in the paper, and the marks are lost in the same places year after year. The following list is a checklist to run through before and after writing an answer.
Before writing
- Read the whole list of transactions and mark each one with the book it belongs to. Do not write any book until every transaction is labelled.
- Note what the firm deals in. Everything else that is bought or sold on credit is an asset and goes to the journal proper.
- Note the rate of trade discount on each purchase and sale, because the same rate will be needed for the returns.
While writing
- Draw the ruling with all columns: date, particulars, invoice or note number, L.F., details, amount. Marks are given for the correct format.
- Write the supplier's or customer's name on the first line and the description of goods below it, then the trade discount as a deduction.
- Show the working in the details column and only the net amount in the amount column.
- Do not enter cash transactions, asset transactions, cash discount or any transaction not supported by an invoice, debit note or credit note.
- Label the total with its destination: Purchases A/c Dr, Sales A/c Cr, Purchase Returns A/c Cr, Sales Returns A/c Dr.
- In the journal proper, write narrations; entries without narrations lose marks.
Mistakes that cost marks
| Mistake | Correct treatment |
| Entering a cash purchase in the purchases book | Cash book only |
| Entering furniture or machinery bought on credit in the purchases book | Journal proper |
| Entering the return at list price when trade discount was allowed on the purchase | Deduct the same trade discount on the return |
| Deducting cash discount in the purchases or sales book | Cash discount is recorded only in the cash book at the time of payment |
| Allowing trade discount on freight or packing | Trade discount is on goods only |
| Posting suppliers to the debit side of their accounts from the purchases book | Suppliers are credited; the total is debited to purchases |
| Posting the sales returns book total to the credit of sales returns account | The total is debited to sales returns account; customers are credited |
| Writing To Ramesh in Ramesh's own account | Write the name of the other account: To Sales, By Sales Returns, By Cash |
| Entering a cash customer's refund in the sales returns book | Cash book, payments side |
| Forgetting to add the cash purchases and cash sales from the cash book when computing total purchases and sales in the ledger | Purchases and sales accounts receive both the book totals and the cash figures |
| Omitting days of grace from a bill's due date | Add three days after the term |
After writing
- Re-add each book and confirm that the total equals the sum of the individual amounts.
- If posting is required, check that the sum of the personal-account postings equals the total posted to the nominal account.
- Confirm that no transaction has been entered twice and that every credit goods transaction has been entered once.
- State in a note which transactions were not entered and why (cash book, journal proper), if the question asked only for certain books.
A subsidiary-book answer is essentially a sorting and arithmetic exercise. Careful sorting, exact discount arithmetic and the correct side on posting are the three skills that decide the marks, and all three are within reach of every student who practises the illustrations in this chapter.
- A question gives purchases from Anil @ Rs 500 less 10 per cent and a later return of 4 units to Anil: the return is 4 × 500 = 2,000 less 200 = Rs 1,800, not Rs 2,000.
- A question asks only for the sales book and lists a cash sale and a sale of an old scooter: both are excluded, with a note that the first belongs to the cash book and the second to the journal proper.
Key Concepts
- Inward invoice
- The invoice received from a supplier for goods bought on credit, which is the source document for the purchases book.
- Outward invoice
- The invoice issued by the firm to a customer for goods sold on credit, whose copy is the source document for the sales book.
- Details column
- The working column in a subsidiary book where the gross amount and trade discount of an invoice are shown before the net amount.
- Net amount
- The invoice value after deducting trade discount, which is the figure entered in the amount column and posted to the party's account.
- Net unit price
- The list price per unit less trade discount, used to value returns at the same rate as the original purchase or sale.
- Posting in total
- Debiting or crediting the periodic total of a subsidiary book to the purchases, sales, returns or bills account in one entry.
- To Sundries
- The words used when posting a subsidiary book total, standing for the several parties whose transactions make up the total.
- Allowance
- A reduction granted to a customer or by a supplier for defective goods or overcharge without the goods being returned, recorded through a credit or debit note.
- Packing and forwarding charges
- Charges added by the supplier to the invoice after trade discount, forming part of the amount payable to the supplier.
- Input GST
- Tax paid on purchases, recorded in a separate account from purchases because it can be set off against tax collected on sales.
- Output GST
- Tax collected from customers on sales, recorded in a separate account from sales as a liability to the government.
- Journal proper
- The residual journal that records credit purchases and sales of assets, bad debts, depreciation, drawings of goods and other entries that fit no special book.
- Due date of a bill
- The date of the bill plus its term plus three days of grace, on which the bill is payable.
- Bill after date
- A bill whose term is counted from the date written on the bill.
- Cash purchase
- A purchase of goods paid for at once in cash or by cheque, recorded in the cash book and never in the purchases book.
- Net purchases
- Total purchases of goods less purchase returns and less goods used for purposes other than sale.
- Net sales
- Total sales of goods, cash and credit, less sales returns.
End-of-Chapter Trial Paper & Test Questions
Topic-wise questions to test your understanding of every concept in this chapter.
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Prepare the purchases book from the following: Aug 2, bought from Ravi 100 shirts @ Rs 300, trade discount 10%; Aug 9, bought from Kiran 50 trousers @ Rs 500, trade discount 5%; Aug 14, bought for cash 20 shirts @ Rs 280; Aug 20, bought a showcase from Rao Furnitures on credit Rs 8,000. / निम्न से क्रय पुस्तक बनाइए: 2 अगस्त, रवि से 100 कमीज़ें @ 300 रु, व्यापारिक छूट 10%; 9 अगस्त, किरण से 50 पतलूनें @ 500 रु, व्यापारिक छूट 5%; 14 अगस्त, 20 कमीज़ें @ 280 रु नकद खरीदीं; 20 अगस्त, राव फर्नीचर्स से 8,000 रु का शोकेस उधार खरीदा।
Show answer
Only the credit purchases of goods are entered. Aug 2: Ravi, 100 shirts @ Rs 300 = 30,000, less trade discount 10% = 3,000, net Rs 27,000. Aug 9: Kiran, 50 trousers @ Rs 500 = 25,000, less trade discount 5% = 1,250, net Rs 23,750. Total of the purchases book for August = 27,000 + 23,750 = Rs 50,750, labelled Purchases A/c Dr. The cash purchase of 14 August (Rs 5,600) is not entered because it belongs to the cash book, and the showcase of 20 August is not entered because it is an asset, not goods, and belongs to the journal proper as Furniture A/c Dr 8,000, To Rao Furnitures A/c 8,000. On posting, Ravi is credited Rs 27,000, Kiran is credited Rs 23,750 and purchases account is debited Rs 50,750. / केवल माल की उधार खरीद लिखी जाती है। 2 अगस्त: रवि, 100 कमीज़ें @ 300 रु = 30,000, घटा व्यापारिक छूट 10% = 3,000, शुद्ध 27,000 रु। 9 अगस्त: किरण, 50 पतलूनें @ 500 रु = 25,000, घटा व्यापारिक छूट 5% = 1,250, शुद्ध 23,750 रु। अगस्त की क्रय पुस्तक का योग = 27,000 + 23,750 = 50,750 रु, जिस पर क्रय खाता Dr लिखा जाता है। 14 अगस्त की नकद खरीद (5,600 रु) नहीं लिखी जाती क्योंकि वह रोकड़ बही में जाती है, और 20 अगस्त का शोकेस नहीं लिखा जाता क्योंकि वह संपत्ति है, माल नहीं, और मुख्य रोज़नामचे में फर्नीचर खाता Dr 8,000, To राव फर्नीचर्स खाता 8,000 के रूप में जाता है। खतौनी में रवि को 27,000 रु क्रेडिट, किरण को 23,750 रु क्रेडिट और क्रय खाते को 50,750 रु डेबिट किया जाता है।
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Prepare the sales book: Sep 1, sold to Mahesh 40 bags @ Rs 450, trade discount 5%; Sep 7, sold to Ganesh 25 bags @ Rs 500; Sep 12, sold for cash 10 bags @ Rs 480; Sep 19, sold to Mahesh 15 bags @ Rs 460, trade discount 5%. / विक्रय पुस्तक बनाइए: 1 सितंबर, महेश को 40 बैग @ 450 रु बेचे, व्यापारिक छूट 5%; 7 सितंबर, गणेश को 25 बैग @ 500 रु बेचे; 12 सितंबर, 10 बैग @ 480 रु नकद बेचे; 19 सितंबर, महेश को 15 बैग @ 460 रु बेचे, व्यापारिक छूट 5%।
Show answer
Sep 1: Mahesh, 40 bags @ Rs 450 = 18,000, less trade discount 5% = 900, net Rs 17,100. Sep 7: Ganesh, 25 bags @ Rs 500 = Rs 12,500, no discount. Sep 19: Mahesh, 15 bags @ Rs 460 = 6,900, less 5% = 345, net Rs 6,555. Total of the sales book for September = 17,100 + 12,500 + 6,555 = Rs 36,155, labelled Sales A/c Cr. The cash sale of 12 September (Rs 4,800) is excluded because it belongs to the cash book. On posting, Mahesh is debited Rs 17,100 and Rs 6,555 (total Rs 23,655), Ganesh is debited Rs 12,500, and sales account is credited with the total Rs 36,155; the cash sale reaches sales account separately from the cash book, making total September sales Rs 40,955. / 1 सितंबर: महेश, 40 बैग @ 450 रु = 18,000, घटा व्यापारिक छूट 5% = 900, शुद्ध 17,100 रु। 7 सितंबर: गणेश, 25 बैग @ 500 रु = 12,500 रु, कोई छूट नहीं। 19 सितंबर: महेश, 15 बैग @ 460 रु = 6,900, घटा 5% = 345, शुद्ध 6,555 रु। सितंबर की विक्रय पुस्तक का योग = 17,100 + 12,500 + 6,555 = 36,155 रु, जिस पर विक्रय खाता Cr लिखा जाता है। 12 सितंबर की नकद बिक्री (4,800 रु) छोड़ दी जाती है क्योंकि वह रोकड़ बही में जाती है। खतौनी में महेश को 17,100 रु और 6,555 रु (कुल 23,655 रु) डेबिट, गणेश को 12,500 रु डेबिट, और विक्रय खाते को योग 36,155 रु क्रेडिट किया जाता है; नकद बिक्री रोकड़ बही से अलग से विक्रय खाते में पहुँचती है, जिससे सितंबर की कुल बिक्री 40,955 रु होती है।
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Goods were bought from Sunil at Rs 800 per unit less 10% trade discount. Later 6 units were returned. At what value is the return entered in the purchase returns book and why? / सुनील से माल 800 रु प्रति इकाई 10% व्यापारिक छूट पर खरीदा गया। बाद में 6 इकाइयाँ लौटा दी गईं। क्रय वापसी पुस्तक में वापसी किस मूल्य पर लिखी जाएगी और क्यों?
Show answer
The return is entered at Rs 4,320, computed as 6 units × Rs 800 = Rs 4,800 less trade discount at the original rate of 10% = Rs 480. The reason is that when the goods were purchased, Sunil was credited only with the net price after trade discount, that is Rs 720 per unit; the trade discount was never recorded. If the return were entered at the list price of Rs 4,800, Sunil would be debited with Rs 480 more than he was credited for those six units, overstating the reduction in the amount owed to him and understating the cost of goods. Entering the return at the same net rate keeps the supplier's account correct and ensures that purchase returns account reflects the true cost of the goods sent back. The entry is supported by a debit note for Rs 4,320 sent to Sunil. / वापसी 4,320 रु पर लिखी जाती है, जिसकी गणना 6 इकाइयाँ × 800 रु = 4,800 रु घटा मूल दर 10% पर व्यापारिक छूट = 480 रु है। कारण यह है कि जब माल खरीदा गया था, सुनील को केवल व्यापारिक छूट के बाद के शुद्ध मूल्य, यानी 720 रु प्रति इकाई, से क्रेडिट किया गया था; व्यापारिक छूट कभी लिखी ही नहीं गई। यदि वापसी सूची मूल्य 4,800 रु पर लिखी जाए, तो सुनील को उन छह इकाइयों के लिए क्रेडिट की गई राशि से 480 रु अधिक डेबिट किया जाएगा, जिससे उसे देय राशि में कमी बढ़ाकर और माल की लागत घटाकर दिखेगी। वापसी को उसी शुद्ध दर पर लिखने से आपूर्तिकर्ता का खाता सही रहता है और क्रय वापसी खाता लौटाए गए माल की सही लागत दर्शाता है। यह प्रविष्टि सुनील को भेजे गए 4,320 रु के डेबिट नोट द्वारा समर्थित है।
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From the following prepare the sales returns book and post it: Oct 4, Prakash returned 3 tables sold @ Rs 2,000 less 10%; Oct 15, Rekha returned 2 chairs sold @ Rs 700; Oct 22, a cash customer returned 1 stool and was refunded Rs 300. / निम्न से विक्रय वापसी पुस्तक बनाइए और खतौनी कीजिए: 4 अक्टूबर, प्रकाश ने 2,000 रु घटा 10% पर बेची गई 3 मेज़ें लौटाईं; 15 अक्टूबर, रेखा ने 700 रु पर बेची गई 2 कुर्सियाँ लौटाईं; 22 अक्टूबर, एक नकद ग्राहक ने 1 स्टूल लौटाया और उसे 300 रु वापस किए गए।
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Oct 4: Prakash, 3 tables @ Rs 2,000 = 6,000, less trade discount 10% = 600, net Rs 5,400, credit note issued. Oct 15: Rekha, 2 chairs @ Rs 700 = Rs 1,400, credit note issued. Total of the sales returns book = 5,400 + 1,400 = Rs 6,800, labelled Sales Returns A/c Dr. The return by the cash customer on 22 October is not entered in the sales returns book because the customer has no account in the ledger; the refund of Rs 300 is recorded on the payments side of the cash book as By Sales Returns A/c 300. Posting: Prakash's account is credited By Sales Returns A/c Rs 5,400; Rekha's account is credited By Sales Returns A/c Rs 1,400; sales returns account is debited To Sundries as per Sales Returns Book Rs 6,800, and separately To Cash Rs 300 from the cash book, so its total for October is Rs 7,100. / 4 अक्टूबर: प्रकाश, 3 मेज़ें @ 2,000 रु = 6,000, घटा व्यापारिक छूट 10% = 600, शुद्ध 5,400 रु, क्रेडिट नोट जारी। 15 अक्टूबर: रेखा, 2 कुर्सियाँ @ 700 रु = 1,400 रु, क्रेडिट नोट जारी। विक्रय वापसी पुस्तक का योग = 5,400 + 1,400 = 6,800 रु, जिस पर विक्रय वापसी खाता Dr लिखा जाता है। 22 अक्टूबर की नकद ग्राहक की वापसी विक्रय वापसी पुस्तक में नहीं लिखी जाती क्योंकि खाताबही में उस ग्राहक का कोई खाता नहीं है; 300 रु की वापसी रोकड़ बही के भुगतान पक्ष में By विक्रय वापसी खाता 300 के रूप में लिखी जाती है। खतौनी: प्रकाश के खाते को By विक्रय वापसी खाता 5,400 रु क्रेडिट; रेखा के खाते को By विक्रय वापसी खाता 1,400 रु क्रेडिट; विक्रय वापसी खाते को To विविध, विक्रय वापसी पुस्तक अनुसार, 6,800 रु डेबिट, और अलग से रोकड़ बही से To नकद 300 रु, जिससे अक्टूबर का इसका योग 7,100 रु होता है।
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Purchased from Deccan Traders 20 units @ Rs 1,000, trade discount 10%, GST 18% on the net value, packing charges Rs 400. Show the computation and state how each part is posted. / डेक्कन ट्रेडर्स से 20 इकाइयाँ @ 1,000 रु खरीदीं, व्यापारिक छूट 10%, शुद्ध मूल्य पर जीएसटी 18%, पैकिंग शुल्क 400 रु। गणना दिखाइए और बताइए कि प्रत्येक भाग की खतौनी कैसे होती है।
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Gross value = 20 × Rs 1,000 = Rs 20,000. Trade discount 10% = Rs 2,000, giving a net value of goods of Rs 18,000. GST at 18% on Rs 18,000 = Rs 3,240. Packing charges Rs 400 are added without any trade discount. Invoice total = 18,000 + 3,240 + 400 = Rs 21,640. In a purchases book with analysis columns, Rs 18,000 goes in the goods column and is posted to the debit of purchases account; Rs 3,240 goes in the GST column and is posted to the debit of input GST account; Rs 400 goes in the packing column and is posted to the debit of packing or carriage inward account; and the total Rs 21,640 is posted to the credit of Deccan Traders' account. The debits 18,000 + 3,240 + 400 = 21,640 equal the credit, so double entry is complete. / सकल मूल्य = 20 × 1,000 रु = 20,000 रु। व्यापारिक छूट 10% = 2,000 रु, जिससे माल का शुद्ध मूल्य 18,000 रु। 18,000 रु पर 18% जीएसटी = 3,240 रु। पैकिंग शुल्क 400 रु बिना किसी व्यापारिक छूट के जोड़े जाते हैं। बीजक योग = 18,000 + 3,240 + 400 = 21,640 रु। विश्लेषण स्तंभों वाली क्रय पुस्तक में 18,000 रु माल के स्तंभ में जाता है और क्रय खाते के डेबिट में खतौनी होता है; 3,240 रु जीएसटी स्तंभ में जाता है और इनपुट जीएसटी खाते के डेबिट में खतौनी होता है; 400 रु पैकिंग स्तंभ में जाता है और पैकिंग या आवक ढुलाई खाते के डेबिट में खतौनी होता है; और योग 21,640 रु डेक्कन ट्रेडर्स के खाते के क्रेडिट में खतौनी होता है। डेबिट 18,000 + 3,240 + 400 = 21,640 क्रेडिट के बराबर हैं, इसलिए दोहरी प्रविष्टि पूर्ण है।
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Which of the following go into the journal proper, and what are the entries: (a) purchased machinery on credit from Bharat Machines Rs 90,000; (b) goods costing Rs 2,500 taken by the owner; (c) Rs 3,000 due from Mahesh written off as bad; (d) goods bought from Ramesh on credit Rs 7,000? / निम्न में से कौन-से मुख्य रोज़नामचे में जाते हैं, और प्रविष्टियाँ क्या हैं: (क) भारत मशीन्स से 90,000 रु की मशीनरी उधार खरीदी; (ख) स्वामी ने 2,500 रु लागत का माल लिया; (ग) महेश से देय 3,000 रु डूबत ऋण में अपलिखित; (घ) रमेश से 7,000 रु का माल उधार खरीदा?
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(a), (b) and (c) go into the journal proper; (d) does not, because it is a credit purchase of goods and belongs in the purchases book. The entries are: (a) Machinery A/c Dr 90,000; To Bharat Machines A/c 90,000; (Being machinery purchased on credit); machinery is an asset, not goods, so the purchases book cannot be used. (b) Drawings A/c Dr 2,500; To Purchases A/c 2,500; (Being goods withdrawn by the proprietor for personal use); the goods leave at cost and reduce purchases, and no sale takes place. (c) Bad Debts A/c Dr 3,000; To Mahesh A/c 3,000; (Being amount due from Mahesh written off as irrecoverable); a loss is recognised and the debtor's account is closed. Each of these is posted individually to both accounts named. / (क), (ख) और (ग) मुख्य रोज़नामचे में जाते हैं; (घ) नहीं, क्योंकि यह माल की उधार खरीद है और क्रय पुस्तक में जाती है। प्रविष्टियाँ हैं: (क) मशीनरी खाता Dr 90,000; To भारत मशीन्स खाता 90,000; (मशीनरी उधार खरीदी); मशीनरी संपत्ति है, माल नहीं, इसलिए क्रय पुस्तक का प्रयोग नहीं हो सकता। (ख) आहरण खाता Dr 2,500; To क्रय खाता 2,500; (स्वामी द्वारा निजी उपयोग के लिए माल निकाला गया); माल लागत पर जाता है और क्रय घटाता है, कोई बिक्री नहीं होती। (ग) डूबत ऋण खाता Dr 3,000; To महेश खाता 3,000; (महेश से देय राशि अप्राप्य मानकर अपलिखित); हानि मानी जाती है और देनदार का खाता बंद होता है। इनमें से प्रत्येक की खतौनी नामित दोनों खातों में अलग-अलग होती है।
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Calculate the due dates: (a) a bill dated 12 June for 3 months; (b) a bill dated 31 March for 1 month; (c) a bill dated 5 August for 90 days. / देय तिथियाँ ज्ञात कीजिए: (क) 12 जून का 3 माह का बिल; (ख) 31 मार्च का 1 माह का बिल; (ग) 5 अगस्त का 90 दिन का बिल।
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(a) 12 June plus 3 months is 12 September; adding 3 days of grace gives 15 September. (b) 31 March plus 1 month would be 31 April, but April has only 30 days, so the nominal due date is 30 April, the last day of that month; adding 3 days of grace gives 3 May. (c) 5 August plus 90 days is counted day by day: 26 days remain in August (6th to 31st), 30 days in September make 56, 31 days in October make 87, and 3 days in November make 90, so the nominal due date is 3 November; adding 3 days of grace gives 6 November. In each case, if the date so found is a public holiday, the bill falls due on the preceding working day. / (क) 12 जून में 3 माह जोड़ने पर 12 सितंबर; 3 दिन की रियायत जोड़ने पर 15 सितंबर। (ख) 31 मार्च में 1 माह जोड़ने पर 31 अप्रैल होता, परंतु अप्रैल में केवल 30 दिन होते हैं, इसलिए नाममात्र देय तिथि 30 अप्रैल, उस माह का अंतिम दिन है; 3 दिन की रियायत जोड़ने पर 3 मई। (ग) 5 अगस्त में 90 दिन दिन-प्रतिदिन गिने जाते हैं: अगस्त में 26 दिन शेष (6 से 31), सितंबर के 30 दिन से 56, अक्टूबर के 31 दिन से 87, और नवंबर के 3 दिन से 90, इसलिए नाममात्र देय तिथि 3 नवंबर; 3 दिन की रियायत जोड़ने पर 6 नवंबर। प्रत्येक मामले में, यदि इस प्रकार निकली तिथि सार्वजनिक अवकाश हो, तो बिल पिछले कार्य दिवस पर देय होता है।
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Explain how the purchases account in the ledger comes to show a different figure from the total of the purchases book. / समझाइए कि खाताबही में क्रय खाता क्रय पुस्तक के योग से भिन्न अंक क्यों दर्शाता है।
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The purchases book records only credit purchases of goods, and its monthly total is posted as one debit to purchases account. But purchases account also receives other entries. Cash purchases of goods are recorded in the cash book and posted from there to the debit of purchases account, so the debit side of purchases account is the purchases book total plus cash purchases. Further, the credit side of purchases account may receive entries from the journal proper for goods withdrawn by the proprietor, goods given as charity or free samples, and goods lost by fire, all of which are credited to purchases at cost. Some firms also credit purchase returns directly to purchases account instead of keeping a separate returns account. Thus the balance of purchases account, which is net purchases of goods for the period, differs from the purchases book total, which is credit purchases only. / क्रय पुस्तक में केवल माल की उधार खरीद लिखी जाती है, और इसका मासिक योग क्रय खाते में एक डेबिट के रूप में खतौनी होता है। परंतु क्रय खाते में अन्य प्रविष्टियाँ भी आती हैं। माल की नकद खरीद रोकड़ बही में लिखी जाती है और वहाँ से क्रय खाते के डेबिट में खतौनी होती है, इसलिए क्रय खाते का डेबिट पक्ष क्रय पुस्तक का योग जमा नकद खरीद होता है। इसके अतिरिक्त, क्रय खाते के क्रेडिट पक्ष में मुख्य रोज़नामचे से स्वामी द्वारा निकाले गए माल, दान या मुफ्त नमूनों में दिए गए माल, और आग से नष्ट माल की प्रविष्टियाँ आ सकती हैं, जो सभी लागत पर क्रय में क्रेडिट होती हैं। कुछ फर्में अलग वापसी खाता रखने के बजाय क्रय वापसी को सीधे क्रय खाते में क्रेडिट करती हैं। इस प्रकार क्रय खाते का शेष, जो अवधि की माल की शुद्ध खरीद है, क्रय पुस्तक के योग से भिन्न होता है, जो केवल उधार खरीद है।
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Sort the following into the correct books: (a) sold goods to Meena Rs 4,000; (b) sold goods for cash Rs 2,000; (c) sold old furniture to Meena on credit Rs 1,500; (d) Meena returned goods Rs 500; (e) received a 2-month bill from Meena for Rs 3,500; (f) paid carriage Rs 200. / निम्न को सही पुस्तकों में छाँटिए: (क) मीना को 4,000 रु का माल बेचा; (ख) 2,000 रु का माल नकद बेचा; (ग) मीना को 1,500 रु का पुराना फर्नीचर उधार बेचा; (घ) मीना ने 500 रु का माल लौटाया; (ङ) मीना से 3,500 रु का 2 माह का बिल प्राप्त हुआ; (च) 200 रु ढुलाई चुकाई।
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(a) Sold goods to Meena Rs 4,000: sales book, since it is a credit sale of goods; Meena is debited. (b) Sold goods for cash Rs 2,000: cash book, receipts side, To Sales; no personal account is involved. (c) Sold old furniture to Meena on credit Rs 1,500: journal proper, because furniture is an asset and not goods; Meena A/c Dr 1,500, To Furniture A/c 1,500. (d) Meena returned goods Rs 500: sales returns book, on the basis of a credit note; Meena is credited. (e) Received a 2-month bill from Meena for Rs 3,500: bills receivable book; Meena is credited and the total is debited to bills receivable account. (f) Paid carriage Rs 200: cash book, payments side, By Carriage; it is a cash payment and enters no other book. After (a), (c), (d) and (e), Meena's balance is 4,000 + 1,500 − 500 − 3,500 = Rs 1,500 debit. / (क) मीना को 4,000 रु का माल बेचा: विक्रय पुस्तक, क्योंकि यह माल की उधार बिक्री है; मीना डेबिट होती है। (ख) 2,000 रु का माल नकद बेचा: रोकड़ बही, प्राप्ति पक्ष, To विक्रय; कोई व्यक्तिगत खाता शामिल नहीं। (ग) मीना को 1,500 रु का पुराना फर्नीचर उधार बेचा: मुख्य रोज़नामचा, क्योंकि फर्नीचर संपत्ति है, माल नहीं; मीना खाता Dr 1,500, To फर्नीचर खाता 1,500। (घ) मीना ने 500 रु का माल लौटाया: विक्रय वापसी पुस्तक, क्रेडिट नोट के आधार पर; मीना क्रेडिट होती है। (ङ) मीना से 3,500 रु का 2 माह का बिल प्राप्त हुआ: प्राप्य बिल पुस्तक; मीना क्रेडिट होती है और योग प्राप्य बिल खाते में डेबिट होता है। (च) 200 रु ढुलाई चुकाई: रोकड़ बही, भुगतान पक्ष, By ढुलाई; यह नकद भुगतान है और किसी अन्य पुस्तक में नहीं जाता। (क), (ग), (घ) और (ङ) के बाद मीना का शेष 4,000 + 1,500 − 500 − 3,500 = 1,500 रु डेबिट है।
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Why is cash discount not entered in the purchases book even when the invoice mentions it? / बीजक में उल्लेख होने पर भी नकद छूट क्रय पुस्तक में क्यों नहीं लिखी जाती?
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An invoice may state terms such as 2 per cent discount if paid within 15 days, but this is only an offer that the buyer may or may not take up. At the time the goods are received and the purchases book is written, no discount has been earned; the full net amount after trade discount is owed to the supplier, and that is the amount recorded and credited to his account. Cash discount arises only at the moment of payment, if payment is made within the stated period, and its amount depends on how much is paid and when. It is therefore recorded in the cash book at the time of payment, in the discount column or by a separate entry, as discount received, and the supplier's account is then debited with the cash paid plus the discount. Entering it in the purchases book would understate the liability to the supplier and would be wrong if the firm later failed to pay within the period. / बीजक में 15 दिन के भीतर भुगतान पर 2 प्रतिशत छूट जैसी शर्तें लिखी हो सकती हैं, परंतु यह केवल एक प्रस्ताव है जिसे क्रेता स्वीकार करे या न करे। जब माल प्राप्त होता है और क्रय पुस्तक लिखी जाती है, तब कोई छूट अर्जित नहीं हुई होती; व्यापारिक छूट के बाद की पूरी शुद्ध राशि आपूर्तिकर्ता को देय होती है, और वही राशि लिखी और उसके खाते में क्रेडिट की जाती है। नकद छूट केवल भुगतान के क्षण उत्पन्न होती है, यदि भुगतान निर्धारित अवधि में किया जाए, और इसकी राशि इस पर निर्भर करती है कि कितना और कब चुकाया गया। इसलिए यह भुगतान के समय रोकड़ बही में, छूट स्तंभ में या अलग प्रविष्टि से, प्राप्त छूट के रूप में लिखी जाती है, और फिर आपूर्तिकर्ता का खाता चुकाए गए नकद जमा छूट से डेबिट किया जाता है। इसे क्रय पुस्तक में लिखने से आपूर्तिकर्ता के प्रति दायित्व कम दिखेगा और यदि फर्म बाद में अवधि के भीतर भुगतान न कर पाए तो यह गलत होगा।
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