Goods sold on credit are recorded in which subsidiary book and why?
Asked by Topperlearning User | 11th Jul, 2016, 04:49: PM
Sales book is a subsidiary book which records credit sales of goods i.e. goods which the firm trade in. Cash sales of goods and sale of any assets are not recorded in sales book. Sales book is also known as day book. Sales invoices or bills issued to customers are the source documents for recording entries in the book. Therefore, goods sold on credit are recorded in sales book.
Answered by | 11th Jul, 2016, 06:49: PM
- Following transactions are of M/s Rakesh Kumar and Sons for the month of April, 2015. Prepare their Purchase Book: Apr. 5 Purchase on credit from M/s Raj Mills: 100 pieces long cloth @ Rs.80 50 pieces shirting @ Rs.100 Apr. 8 Purchased for cash form M/s Ambika Mills: 50 pieces muslin @ Rs.120 Apr. 15 Purchased on credit from M/s Sagar Mills: 20 pieces coating @ Rs.1,000 10 pieces shirting @ Rs.90 Apr. 20 Purchased on credit from M/s Bharat Typewriters Ltd.: 5 Typewriters @ Rs.1,400 each
- Name all the subsidiary books which do not record cash transactions.
- Name the subsidiary book which records only cash transaction.
- Goods purchased on credit are recorded in which subsidiary book and why?
- What is the difference between a purchases book and purchases account?
- What is recorded in a journal proper?
- Goods returned by debtors are recorded in which subsidiary book and why?
- Goods returned to creditors are recorded in which subsidiary book and why?
- What is return inward book? Explain briefly.
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