Special Purpose Subsidiary Books

  • Purchase Book is used for recording credit purchases of goods.
  • Posting to the party's account is done daily in this book with individual amounts on the credit side of their accounts.
  • Advantages of purchase book are that it is convenient to know the credit purchases at any point of time.It provides the compact information of various firms or parties, etc.  
  • Sales Book is the book kept for recording only the credit sale of goods in which the trader deals. Invoice is a document giving the details of goods bought as to their quantity, quality, brand, price, etc.
  • Purchases return or returns outward book is maintained to record the goods or materials returned to the suppliers that have been purchased on credit.
  • Sales return book or returns inward book is maintained to record the return of goods or materials sold on credit to customers.
  • A ‘Debit note’ is a document prepared in duplicate, by purchaser (Debtor) to inform the supplier (Creditor) that his account has been debited with the amount mentioned in the note.
  • A ‘Credit note’ is a document prepared in duplicate, by the seller (Creditor) to inform the buyer (Debtor) that his account has been credited with the amount.
  • Journal proper is a residuary book after the sub-division of journal and records only those transactions which cannot be recorded in any other subsidiary book.

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