Subsidiary Books Flashcards
What are Subsidiary Books?
Subdivision of journals on the basis of nature of transactions is known as Subsidiary Books.
What is a Cash Book?
The subsidiary book in which details of cash are received in the form of cash, cheques, drafts, etc., and details of payment made in the form of cash, cheques, drafts, etc. is called a cash book.
State the meaning of ‘Contra entry’.
The accounting entries which appear on both the sides of cash book are called contra entries.
State the meaning of the imprest system of Petty Cash Book.
Imprest System of Petty cash book is a system in which head cashier gives fixed (imprest) amount to the petty cashier at the beginning of month/fortnight to meet the expenses of that period. Later on the shortfall after meeting the expenses is reimbursed by the head cashier.
Which transactions are recorded in Purchase Book?
Goods purchased on credit for resale are only recorded in the Purchase Book.
Which sales are recorded in Sales Book?
Credit sales of goods are recorded in Sales Book.
Which transactions are recorded in the Journal Proper?
Journal Proper is meant for recording opening entries, closing entries, adjustment entries, transfer entries, and rectification entries.
Who is a Petty Cashier?
A cashier in charge of recording transactions in a petty cash book is known as Petty Cashier.
A bank account which the businessman prefers to open.
Current Account
Petty Cash Book in which the payment side is ruled in suitable columns.
Analytical Petty Cash Book
Subsidiary book in which only credit purchases of goods are recorded.
Purchase Book
Subsidiary book in which return of goods sold on credit is recorded.
Sales Return Book
The entry is recorded on both sides of the cash book.
Contra Entry
Name the account which encourages personal savings.
Saving Account
A note was issued by the buyer to the seller giving full details of goods returned.
Debit Note
