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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.
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