5.1.4. Purchases Book: The goods purchased on credit basis for resale will
be entered in the purchases book. Proper filing of invoices in
consecutive order is sufficient instead of maintaining purchases book.
5.1.5. Purchases returns book: Some times goods bought need to be
returned. A debit note will be issued while returning goods.
Simultaneously entries will be made in the purchases return book.
5.1.6. Sales Book: Credit sales are recorded in the Sales Book i.e., goods
sold on credit basis. For each credit sale ‘outward, invoice’ shall be
prepared’
5.1.7. Sales returns book: When goods sold are returned, entries will be
made in this book. Credit notes shall be issued on receipt of goods
(returned back)
5.1.8. Bills receivable book: A bill receivable means that a trader is entitled
to receive cash/cheque on a specific date. The final accepter of the
bill is liable to pay. In this book the details like, name of the drawer
and accepter, as well as the date of acceptance, the amount due and
the due date of payment will be recorded.
5.1.9. Bills payable book: The bill accepted by the trader shall be paid by
him on the due date. The details of bills payable will be recorded in
this book.
5.1.10. Journal proper: If any transaction does not find place in the above said
books i.e., from cash book to bills payable book, the journal proper
book will be used. This Journal Proper Book is used for the following
purposes :-
- To pass opening entries
- Transfer from one account to another account
- To rectify errors.
- To pass adjusting entries
- To make closing entries
- Postings with reference to dishonor of bills.