Purchase book records:

Credit purchases of goods. Only credit purchases of goods for resale.

Purchase of furniture on credit

Goods returned by a customer are entered in the:

Sales returns book. Sales returns book (Returns Inward).

A credit note is issued for:

Sales return. It is sent to a customer who returned goods.

A debit note is issued when goods are:

Returned to supplier. Purchase return.

A contra entry appears:

On both sides of the cash book. It affects cash and bank.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Book Keeping and Accountancy Chapter 5: Subsidiary Books

Short notes, key concepts, quick revision and practice MCQs with answers

To reduce the load on the journal, similar transactions are recorded in separate books called subsidiary books, which are then posted to the ledger periodically.

Key concepts: Subsidiary Books

Purchase book: Records credit purchases of goods meant for resale.
Sales book: Records credit sales of goods.
Purchase returns book: Records goods returned to suppliers (debit note is issued).
Sales returns book: Records goods returned by customers (credit note is issued).
Cash book: Records cash and bank transactions; types are single column, double column and triple column.
Journal proper: Records transactions that do not fit any other book, e.g. opening entry, closing entries, rectification.
Analytical Purchase and Sales Books with GST: Columns for Purchase (or Sales), CGST, SGST and IGST. A supplier or customer within Maharashtra: CGST + SGST; outside Maharashtra: IGST. Trade discount is deducted before GST.
Return books with GST: Goods returned to a supplier are recorded from the Debit Note in the Purchase Return Book; goods returned by a customer from the Credit Note in the Sales Return Book, with the same GST reversed.

Quick revision: important points

Cash purchases and cash sales are entered in the cash book, not in purchase or sales book.
Trade discount is deducted in the invoice and is not recorded in books.
Contra entry is made when both cash and bank are affected.
Pune trader buying from Nashik: CGST + SGST. Buying from Delhi: IGST.
Totals of the GST columns are posted to the Input (or Output) CGST, SGST and IGST accounts.

Practice MCQs with answers

Purchase book records:
1. Credit purchases of goods
2. Cash purchases
3. Purchase of furniture on credit
4. Sales
Show answer
Answer: A. Credit purchases of goods
Only credit purchases of goods for resale.
Goods returned by a customer are entered in the:
1. Sales returns book
2. Purchase book
3. Cash book
4. Ledger only
Show answer
Answer: A. Sales returns book
Sales returns book (Returns Inward).
A credit note is issued for:
1. Sales return
2. Purchase
3. Salary
4. Rent
Show answer
Answer: A. Sales return
It is sent to a customer who returned goods.
A debit note is issued when goods are:
1. Returned to supplier
2. Sold
3. Donated
4. Lost
Show answer
Answer: A. Returned to supplier
Purchase return.
A contra entry appears:
1. On both sides of the cash book
2. Only in the ledger
3. Only in the sales book
4. Nowhere
Show answer
Answer: A. On both sides of the cash book
It affects cash and bank.

All Class 11 Book Keeping and Accountancy chapters

Class 11 Book Keeping and Accountancy notes: all chapters