Sales return day book is written up from the copies of the credit notes sent to customers. At the end of the month, the total of the sales return book is debited to the sales return account in the nominal ledger. Credit is made in the personal account of the customer in the trade receivable ledger.
In other words, … Read the rest
A cash book is the special journal which is used for recording all cash receipts and cash payment. If the cash book is maintained, there is no need for preparing a cash account in the ledger. However, the other aspects of the transactions will be recorded in the ledger.
Cash book serves dual role of journal as well as ledger. … Read the rest
Triple column cash book is an improvement over the double column cash book. In modern times, it is virtually impossible to imagine any business which does not deal with banks. Most of the transactions relating to receipts and payments of money are made through cheques. So the transaction trough banks are also recorded in the triple column cash book by … Read the rest
When a business transaction takes place, the first record of it is done in a book called journal. The journal records all the transactions of a business in the order in which they occur. The journal may, therefore, be defined as a chronological record of accounting transactions. It shows names of accounts that are to be debited or credited, the … Read the rest
Sales daybook is a book that records daily credit sales. They are recorded from duplicates of invoices issued to customers. Periodically the total in this book is transferred to the credit side of sales ledger, while the individual account is debited in trade receivable accounts.… Read the rest
Purchase day book is the day book used to record all daily credit purchases for which the total is debited to the purchase ledger at regular intervals and credited to each supplier’s account in trade payable ledger.
The source documents for the purchase day book is the incoming invoice from the supplier.… Read the rest
