Page 73 - ISCDEBK-XI

11.2 Double Entry Book Keeping—ISC XI

• Sales Return Book (also known as Returns Inward Book) is used for the purpose of recording the return
of goods sold on credit.
• Journal Proper. Journal Proper is used for recording those transactions which do not find a place in any
other subsidiary book such as (i) Cash Book, (ii) Purchases Book, (iii) Sales Book, (iv) Purchases Return Book
and (v) Sales Return Book.
Entries recorded in the Journal Proper are:
(i) Opening Entry (vi) Miscellaneous Entries:
(ii) Closing Entry • Credit Purchase of Assets
(iii) Transfer Entries (vii) Credit Sale of Assets:
(iv) Adjustment Entries • Writing off Bad Debts
(v) Rectifying Entries • Endorsement of Bills Receivable
Table showing the Nature of Transactions Recorded in Subsidiary Books and their
Effect on Ledger Accounts
Name of the Book Nature of Transaction Entered Effect on Ledger Accounts
Debit Credit
1. Cash Book All cash and bank transactions. Cash and Bank A/c for receipt of Cash and Bank A/c for Payment
Cash and Cheques. of Cash and Cheques.
2. Purchases All credit purchases of goods. Purchases A/c Suppliers’ A/c
Book
3. Sales Book All credit sales of goods. Customers’ A/c Sales A/c

4. Purchases Return of goods to Suppliers’ A/c Purchases Return A/c or
Return Book suppliers. Returns Outward A/c
5. Sales Return Return of goods by Sales Return A/c or Customers’ A/c
Book customers. Returns Inward A/c

6. Journal Proper All such transactions that Account affected by Account affected by
cannot be entered in the transactions. transactions.
above five books.
Format of Purchases Book or Purchases Journal

PURCHASES BOOK OR PURCHASES JOURNAL
Date Particulars Invoice L.F. Details Cost Freight, Total
No. Cartage, etc.
` ` ` `
(1) (2) (3) (4) (5) (6) (7) (8)

The Purchases Book has eight columns:
1. Date. The date of transaction is written.

2. Particulars. The name of the seller of goods, description of the articles, price per unit
payable and quantities purchased are written.

3. Invoice No. Invoice number of the goods purchased is written.