By Rao M.E. Thukaram
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Extra resources for Accounting and Financial Management for BCA and MCA
Therefore, it is easy to locate any entry for verification and corrections of errors. 4. Two entries to be made in a Journal, one to be debited and the other to be credited is avoided. Only one entry is made. 5. Detection and rectification of errors become easy and the system itself is a simplified one. 6. The maintenance of accounts become easy and comfortable as the work can be distributed to different persons to maintain different subsidiary books. Sub-division of Journal or Various Subsidiary Books The various subsidiary books maintained by a business are as follows : 1.
2004 Aug Aug 6. 14. 18. 22. Sold to Raj Kumar goods worth Rs 4000 at a discount of 10%. Sent goods to Ramesh, goods of the value of Rs. 6000, Packing charges Rs 100. Shankar bought one Motor car for Rs 65000 Mohan bought goods Rs 4000 at a discount of 20% and paid cash. Solution Sales Book Date 2004 Aug 6. Particulars LF Raj Kumar Less : Trade discount 4000 400 Ramesh Add; Paching charges 6000 100 Outward Invoice Amount 3600 14. 6100 9700 Accounting and Financial Management 52 Note : 1. Transaction of August 18, relates to an asset (Motor car).
Particulars LF Ram’s a/c To Sales a/c (Being credit sale of goods) Dr. Purchases a/c To Cash a/c (Being cash purchase of goods) Dr. Debit Credit 1,000 1,000 8,000 8,000 Journal Date Particulars 3. 4. 5. 6. 23 LF Debit Cash a/c Dr. Discount a/c To Ram’s a/c (Being cash received from Ram and discount allowed to him) 5,000 250 Purchases a/c Dr. To Ram’s a/c (Being credit purchases from Ram) 7,000 Ram’s a/c To Sales a/c (Being goods sold to Ram) Dr. 2,500 Repairs a/c To Cash a/c (Being repair charges of car paid to Ram) Dr.