Page 36 - NOTES- CASH BOOK

Recording of Transactions - II 129

Refer to the purchases (journal) book of Kanika Traders you will notice that
20 mini size T.V.’s and 15 tape- recorders were bought from Neema Electronics
for Rs. 1,82,000 However, on delivery 2 mini T.V.’s and tape recorders were
found defective and were returned back vide debit note no. 03/2017. In this case,
the purchases return books will be prepared as follows :
Purchases Return (Journal) Book

Date Debit Name of the Supplier L.F. Amount
Note (Account to be debited) Rs.
No.
03/2017 Neema Electronics 13,200
13,200

Posting from the purchases returns journal requires that the supplier’s
individual accounts are debited with the amount of returns and the purchases
returns account is credited with the periodical total.

Neema Electronics Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
Purchases 13,200
Return

Purchases Return Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
Sundries as 13,200
per purchase
returns book

4.4 Sales (Journal) Book
All credit sales of merchandise are recorded in the sales journal. Cash sales are
recorded in the cash book. The format of the sales journal is similar to that of
the purchases journal explained earlier. The source document for recording
entries in the sales journal are sales invoice or bill issued by the firm to the
customers. The date of sale, invoice number, name of the customer and amount
of the invoice are recorded in the sales journal. Other details about the sales
transaction including terms of payment are available in the invoice. In fact, two
or more than two copies of a sales invoice are prepared for each sale. The book

2018-19