GSEB Class 11 Solutions Chapter 6 Subsidiary Books

GSEB Class 11 Accounts Subsidiary Books Text Book Questions and Answers

 

Question 1. Write the correct option from those given below each question :
(1) Credit purchase will be recorded in
(a) Purchase return book
(b) Purchase book
(c) Cash book
(d) Journal proper
Answer: (b) Purchase book
In simple words: When a business buys goods on credit, it records that transaction in the purchase book. This keeps track of all items bought without paying cash immediately.

Exam Tip: Remember that the Purchase Book is specifically for credit purchases of *goods* (items for resale), not assets like furniture or machinery.

 

Question 1. (2) Credit purchase of assets will be recorded in
(a) Purchase book
(b) Journal proper
(c) Cash book
(d) Sales book
Answer: (b) Journal proper
In simple words: Buying assets on credit is noted in the journal proper. The purchase book is just for goods bought, not for larger assets.

Exam Tip: Differentiate between purchasing goods (for resale) and purchasing assets (for use in the business) when determining which book to use for recording transactions.

 

Question 1. (3) Cash purchase of goods will be recorded in
(a) Cash book
(b) Journal proper
(c) Purchase book
(d) Bills receivable book
Answer: (a) Cash book
In simple words: If a business buys goods and pays with cash right away, this transaction goes into the cash book. This book tracks all money coming in and going out.

Exam Tip: Cash transactions, whether for goods or assets, are always recorded in the Cash Book, which manages all cash inflows and outflows.

 

Question 1. (4) Credit sales of goods will be recorded in
(a) Sales book
(b) Purchase book
(c) Journal proper
(d) Bills receivable book
Answer: (a) Sales book
In simple words: When a company sells goods to customers on credit, it records those sales in the sales book. This ledger notes all items sold without immediate cash payment.

Exam Tip: The Sales Book is used exclusively for credit sales of goods, mirroring the Purchase Book's function for credit purchases of goods.

 

Question 1. (5) What is sent to the traders along with goods returned which is purchased on credit ?
(a) Debit note
(b) Credit note
(c) Bills receivable
(d) Bills payable
Answer: (a) Debit note
In simple words: When a business returns goods it bought on credit, it sends a debit note to the supplier. This note tells the supplier to reduce the amount owed.

Exam Tip: A debit note is sent by the *buyer* when returning goods, indicating a reduction in their liability to the supplier.

 

Question 1. (6)What is sent by the customers along with goods returned by them ?
(a) Debit note
(b) Credit note
(c) Bills receivable
(d) Bills payable
Answer: (a) Debit note
In simple words: When customers give back goods they bought, they send a debit note. This informs the seller that their account should be debited, decreasing the amount the customer owes.

Exam Tip: The customer sends a debit note, while the seller usually sends a credit note in response to a return. This ensures clear communication and record-keeping for both parties.

 

Question 1. (7) Which transactions are recorded in Journal Proper ?
(a) Credit purchase of goods
(b) Credit sales of goods
(c) Assets purchase - sales in credit
(d) Goods return
Answer: (c) Assets purchase - sales in credit
In simple words: Transactions like buying or selling assets on credit are entered in the journal proper. This is different from the specific books for buying or selling goods.

Exam Tip: The Journal Proper acts as a "catch-all" for transactions that don't fit into other specialized subsidiary books, such as credit purchases or sales of fixed assets, opening entries, or rectification entries.

 

Question 1. (8) Manoj has purchased goods of ₹ 10,000 at 10% trade discount. GST 5 %. Half of the amount was paid immediately. Which amount will be recorded in Purchase Book ?
(a) ₹ 10,000
(b) ₹ 9,000
(c) ₹ 9,450
(d) ₹ 4,500
Answer: (b) ₹ 9,000
In simple words: Manoj bought items for Rs. 10,000 but got a 10% discount. So, the real price is Rs. 9,000. This is the value that should be entered in the Purchase Book. GST and immediate partial payments do not affect the base amount for trade discount calculation in the Purchase Book.

Exam Tip: Remember to deduct trade discount from the gross value of goods when calculating the amount to be recorded in the Purchase Book. Cash discount and GST are handled separately and do not impact the net value for the Purchase Book entry.

 

Question 1. (9) Nilesh deals with mobile purchase-sales business. Nilesh has purchased furniture of ₹ 25,000 from Pankaj Mart, where it will be recorded ?
(a) Purchase book
(b) Journal proper
(c) Bills payable book
(d) Cash book
Answer: (b) Journal proper
In simple words: Since Nilesh bought furniture, which is an asset for his business and not something he sells, this purchase will go into the journal proper. It's not a regular goods purchase, so it doesn't fit in the purchase book.

Exam Tip: Assets purchased for business use (e.g., furniture, machinery) are distinct from goods purchased for resale. Purchases of assets, especially on credit, are recorded in the Journal Proper, not the Purchase Book.

 

Answer the following questions in one sentence :

 

Question 2. (1) What is meant by Subsidiary Books ?
Answer: For all business transactions, those having a similar nature and occurring frequently are categorized and recorded in separate books, which are known as Subsidiary Books.
In simple words: Subsidiary books are special ledgers used to group similar and common business transactions, making record-keeping easier.

Exam Tip: Emphasize that subsidiary books are used for *frequent* and *similar* transactions, allowing for specialization and efficiency in accounting.

 

Question 2. (2) How many types of subsidiary books are there? Which are they?
Answer: There are four types of subsidiary books:
1. Cash book (Cash journal),
2. Goods subsidiary books,
3. Subsidiary books for bills and
4. Journal proper.
In simple words: There are four main types of subsidiary books: one for cash, one for goods, one for bills, and a general journal for everything else.

Exam Tip: Listing all four types correctly and clearly is important for full marks in this type of direct recall question.

 

Question 2. (3) Which types of transactions are recorded in journal proper?
Answer: Generally all adjustments, closing entries, and transfer entries are recorded in the journal proper.
In simple words: The journal proper records transactions like adjustments, closing accounts, and transfers that don't fit into other specialized books.

Exam Tip: Remember that the Journal Proper is for non-routine or specific entries, such as those related to corrections, end-of-period adjustments, or asset transactions.

 

Question 2. (4) What is meant by Debit Note ?
Answer: When goods purchased on credit are returned to the supplier, the note sent to the supplier to claim a rebate for the returned goods is known as 'Debit Note'.
In simple words: A debit note is a document sent to a supplier when a business returns items it bought on credit, asking for a reduction in the amount owed.

Exam Tip: Define a debit note clearly, highlighting that it is issued by the *purchaser* for goods *returned* to the supplier on credit.

 

Question 2. (5) What is meant by Credit Note ?
Answer: When goods sold on credit are returned by the customer, then the customer's account will be credited. And the customer is informed by a document, which is written in some specific manner, known as 'Credit Note'.
In simple words: A credit note is a paper sent to a customer when they return items they bought on credit, showing that their account has been credited and they owe less money.

Exam Tip: Clearly state that a credit note is issued by the *seller* (the business) to the *customer* for goods *returned* by the customer on credit, indicating a decrease in the customer's debt.

 

Answer the following questions in two or three sentences :

 

Question 3. (1) State the advantages of preparing subsidiary books.
Answer: Advantages of preparing subsidiary books are as under :
1. Easiness in writing the entry: As the journal is divided into subsidiary books, writing of the books of accounts becomes easy.
2. Size of books: Because of preparing the subsidiary books, the size of books decreases and it becomes more convenient to write the books of accounts and transfer them.
3. Quick ledger posting: Because of subsidiary books, work distribution among more persons is possible, and therefore quick ledger posting is also possible.
4. Time and energy are saved: Because of subsidiary books, separate ledger posting is done in individual accounts. While at the end of a specific period, the total amount of the subsidiary book is posted to the concerned account, which means it saves time and energy of posting one effect.
5. Increase in the work's ability: Because of subsidiary books, work distribution is possible, and a particular person can become an expert by doing the same work, and therefore, work can be completed quickly with minimum errors.
6. Internal control: Subsidiary books minimize the chances of mistakes, misappropriations, and frauds, and arrangements can be made so that one person's work can be checked by another person.
7. Easier in the access of information: The information regarding purchases, sales, cash, debtors, or creditors is available quickly and easily at any time because of the subsidiary books.
8. Audit work: If subsidiary books are maintained, audit work of the books of accounts can be conducted by more persons at a time.
9. Easiness in accounting: It becomes easy to computerize the books of accounts and to keep a self-balancing ledger.
In simple words: Subsidiary books make accounting simpler by dividing tasks, reducing book size, speeding up ledger entries, and saving time. They also help improve accuracy, allow for better internal checks, provide quick access to information, make auditing easier, and simplify computerizing accounts.

Exam Tip: When listing advantages, aim for clarity and conciseness. Each point should briefly explain a benefit. Consider using keywords like "efficiency," "control," "accuracy," and "information access."

 

Question 3. (2) Distinguish between Debit note and Credit note.
Answer:

In simple words: Debit notes are sent by buyers to suppliers when goods are returned, reducing the amount owed to the supplier. Credit notes are sent by sellers to customers when goods are returned, reducing the amount the customer owes. They serve as essential documents for recording returns and adjusting accounts.

Exam Tip: For distinctions, organize your points clearly in a comparative table. Focus on key differences like who issues the note, to whom it's sent, and its accounting impact.

 

Question 3. (3) Give the specimen of Debit note.
Answer:

In simple words: A debit note is like a formal letter sent by the buyer to the seller when returning items, telling the seller to reduce the amount owed. It lists details like the date, item description, and total amount to be adjusted.

Exam Tip: When providing a specimen, ensure all essential elements like the title, sender's and receiver's details, date, description of goods, quantity, rate, and total amount are clearly presented in a professional format.

 

Question 3. (4) Explain the purchase book and types of purchase book with example.
Answer: A subsidiary book in which a trader records credit purchase transactions is known as 'Purchase Book'. This book is also known as Jamavahi or Credit Book because the account of the supplier of goods is credited in it. When a businessman is purchasing only one type of goods, generally a simple purchase book is maintained. In the purchase book, only transactions relating to the credit purchase of respective goods are recorded. Transactions of cash purchase and asset purchases are not recorded in the purchase book. The specimen of it is as follows:

(1) In the Date column, the date of the transaction will be recorded. (2) In the Particular column, the name of the supplier from whom goods are purchased on credit will be recorded. (3) In the 'Inward Invoice Number' column, the invoice number or serial order number given by the trader will be recorded. (4) The page number of the ledger, on which the amount is credited in the account of the concerned supplier, will be recorded in the Ledger Folio (L.F) column. (5) The amount of net purchases arrived at, after deducting the amount of trade discount, will be recorded in the Amount column.
In the purchase book, according to convenience and needs, the trader records fixed time interval transactions, and at the end of that period, total credit purchase will be decided after adding all amounts. This time interval may be on a weekly, fortnightly, monthly, or quarterly basis. This type of summary can be found out frequently at the end of a fixed time interval.
Types of Purchase Book: A purchase book can be maintained in two ways: Simple Purchase Book and Columnar Purchase Book. The Columnar Purchase Book can be further divided into (i) Purchase book with columns according to types of goods and (ii) Purchase book with columns for goods and expenses.
(i) Purchase book with columns according to types of goods: When a trader purchases more than one type of goods, instead of maintaining different purchase books for each type of goods, he will maintain a columnar purchase book. Other particulars remain constant, but there will be additional columns for each different type of goods, in which the purchases of the respective goods will be recorded, e.g., Wheat, Rice, Bajra, etc. In addition to this, a column showing total purchase is kept as the last column. Based on this type of purchase book, one can find out the credit purchase of each type of goods as well as the total credit purchase from a particular supplier. The specimen of such a columnar purchase book is as under :

(ii) Purchase book with columns for goods and expenses: When a trader purchases goods on credit, many times, the seller prepares his invoice by adding various other charges apart from the value of goods. Normally, such charges are in respect of GST, Railway freight, Wages, Carriage, etc. For recording these types of expenses, a purchase book having columns for expenses is prepared, which includes columns for the cost of goods as well as expenses. The specimen of such a columnar purchase book is as under:

In simple words: A purchase book records items bought on credit by a business. It can be simple, listing only basic details, or columnar, with extra columns for different types of goods or expenses like freight and GST, to track purchases more thoroughly.

Exam Tip: When explaining the Purchase Book, define its core purpose (credit purchases of goods) and then detail its two main types (simple and columnar) along with their respective column structures and benefits. Remember to include a sample table for each type if possible.

 

Question 3. (5) Give the specimen of Sales Book and Sales Returns Book.
Answer: The specimen of Sales Book is as under :

Explanation:
(1) In the Date column, the date of the transaction is recorded. (2) In the Particular column, the name of the customer to whom the trader sold goods on credit is recorded. (3) In the Outward Invoice Number column, the number of the bill issued to the customer is recorded. (4) In the Ledger Folio (L.F.) column, the page number of the ledger in which the amount is debited in the account of the concerned customer is recorded. (5) In the Amount column, the amount of net sales arrived at after deducting the amount of trade discount is recorded.
(ii) The specimen of Sales Return Book is as under:

Explanation:
(1) In the Date column, the date on which goods are returned is recorded. (2) In the Particular column, the name of the customer who has returned the goods and details of goods returned are entered. (3) In the Credit Note Number column, the number of the credit note sent for the return of goods is recorded. (4) In the Ledger Folio (L.F) column, the page number of the ledger on which the amount is credited in the account of the concerned customer is recorded. (5) In the Amount column, the amount of net sales return arrived at after deducting trade discount is recorded.
In simple words: The Sales Book tracks all credit sales a business makes, detailing who bought what and for how much. The Sales Returns Book records any items customers return from their credit purchases, noting the details of the returned goods and the credit note issued.

Exam Tip: For specimens of accounting books, remember to clearly label all columns and provide the general title of the book. Ensure the distinction between sales (outgoing) and sales returns (incoming from customers) is evident in the column headers.

 

Question 4. Prepare Purchase Book in the books of Shri Suresh: 2018 Oct. 1 Purchased goods of ₹ 10,000 from Dipak on one month credit. 3 Purchased goods of ₹ 20,000 from Sardar Stores at 10 % trade discount. Invoice no. 116 7 Purchased goods of ₹ 18,000 from Pankaj on cash. 15 Placed order with Rajesh for supply goods of ₹ 20,000 at 10% trade discount. 20 Purchased furniture of ₹ 16,000 from Vyas Furniture Mart on one month credit. 21 Rajesh has sent goods as per our order and sent invoice no. 350 after adding ₹ 1,000 for railway freight. 24 Purchased goods of ₹ 14,000 at 5 % cash discount. 25 Purchased goods of ₹ 30,000 from Nilesh at 10 % trade discount and half of the amount paid immediately by cheque. 26 Purchased goods of ₹ 15,000 from Chirag at 10% trade discount and 5% cash discount. Amount paid immediately. 30 Purchased goods of ₹ 40,000 from Nitin. Invoice no. 151.
Answer:

Note:
(1) Total Credit Purchase is of ₹ 1,13,000. This amount will be debited on the debit side of Purchase A/c.
(2) The following transactions will not be recorded in Purchase Book:
(i) Date 7 Transaction of cash purchases
(ii) Date 15 Non-economic transaction
(iii) Date 20 Purchase of furniture [fixed asset] on credit
(iv) Date 24 Transaction of cash purchases
(v) Date 26 Transaction of cash purchases
(3) Transaction of Date 25 is recorded considering the whole transaction as a credit transaction.
(4) Date 21 Railway freight of ₹ 1,000 will be recorded in the Journal proper.
In simple words: This table shows all the items Suresh bought on credit. It lists the date, supplier, invoice number, and the amount for each purchase. Transactions that involve cash, are non-economic, or involve buying assets (not goods) are not included here.

Exam Tip: For problems requiring preparation of books, always remember to differentiate between credit purchases of goods (recorded in Purchase Book) and other transactions like cash purchases, asset purchases, or non-economic events, which are recorded elsewhere.

 

Question 5. From the following transactions of Shri Gadda Electronics Stores, prepare Columnar Purchase Book. Shri Gadda Electronics deals with TV, Refrigerator and Washing Machine. 2018 May 1 Purchased 10 TV set at ₹ 30,000 each set, 5 Refrigerators at ₹ 15,000 per piece and 2 Washing Machines at ₹ 18,000 per piece from Shri Daya Electronic Stores. Credit period 1 month. Invoice no. 100. 7 Purchased from Shri Tarak Electronics Stores, 5 Pieces TV at ₹ 25,000 per piece and 10 Refrigerators at ₹ 16,000 per piece at 10 % trade discount. Received invoice no. 151. Half of the amount paid immediately. 12 Purchased cycle of ₹ 5,000 from Shree Ambey Cycle Stores. 20 Purchased 5 Refrigerators at ₹ 20,000 per piece and 10 Washing Machines at ₹ 15,000 per piece at 10% trade discount and 5% cash discount from Shree Atmaram Electronics Stores. Amount paid immediately. 25 Placed on order to Smt. Babita for supplying 20 pieces TV at ₹ 28,000 per piece and 6 pieces Washing Machines at ₹ 21,000 per piece. 31 From Shree Gokuldham Electronics Stores, purchased 5 pieces TV sets at ₹ 30,000 per piece and 5 Washing Machines at ₹ 23,000 per piece. Trade discount at 10 %. Invoice no. 123.
Answer:

Note:
(1) Total credit purchase is of ₹ 9,06,000, which shall be recorded on the debit side of Purchase A/c.
(2) The following transactions will not be recorded in the Columnar Purchase Book :
(i) Date 12 Transaction of asset (cycle) purchased
(ii) Date 20 Cash transaction
(iii) Date 25 Non-economic transaction
(3) The transaction of Date 7 is recorded considering the whole transaction as a credit transaction.
In simple words: This columnar purchase book records all the credit purchases made by Gadda Electronics Stores, separated by product type (TV, Refrigerator, Washing Machine). It helps track how much of each product was bought on credit from different suppliers.

Exam Tip: For columnar purchase books, ensure that each type of goods has its own dedicated column. Carefully calculate net purchase amounts after any trade discounts, and identify transactions that should be excluded (e.g., asset purchases, cash transactions, non-economic events).

 

Question 6. Abhishek Stores of Rajkot is an iron merchant. Prepare a purchase book in his books of account with columns for expenses. He maintains separate columns for expenses like GST, Railway freight, labour. Prepare a purchase book by applying a total 12 % GST rate. GST is not included for the following transactions. Add the applicable amount of GST and prepare a purchase book. 2018 April 1 Goods purchased of ₹ 50,000 10 % trade discount from Shahrukh Store, labour of ₹ 2,000 and railway freight of ₹ 5,000 are disclosed invoice no. 51. 5 Goods purchased of ₹ 30,000 at 5 % trade discount from Dipika. Total amount paid immediately inclusive of labour ₹ 500 and railway freight 600. 20 Goods purchased of ₹ 40,000 at 10% trade discount from Amitabh of Mumbai Bill no. 251 received inclusive of labour ₹ 1,000 and railway freight ₹ 2,500.
Answer: The answer for Question 6 is located on page 15, which is outside the specified processing range (page 1 to page 14). Therefore, the answer will not be provided here.
In simple words: The solution to this question is on the next page, beyond the allowed content for this task.

Exam Tip: When preparing a purchase book with expense columns, carefully calculate the net value of goods after trade discounts, and then add applicable expenses like railway freight, labour, and GST to arrive at the total amount. Ensure GST is calculated on the net value of goods plus any direct expenses before discount.

 

Question 7. From the following transactions, prepare Sales Book in the books of Shree Prabhat Hardware Stores who is an iron trader:
2015
June 1 Sold goods of Rs. 20,000 to Neha on 3 months credit and bill no. 80 sent.
8 Sold goods of Rs. 10,000 to Vidhi Store at 5 % trade discount and sent bill no. 85 with carriage of 400.
12 Sold goods of Rs. 15,000
15 Sold machinery of Rs. 10,000 for Rs. 3,000 of Krima.
23 Sold goods of Rs. 15,000 to Shimoli at 10% trade discount, and half of the amount immediately paid by Shimoli. Bill no. 90.
28 Sold goods of Rs. 20,000 to Riddhi at 10% cash discount on cash.
Answer:
Sales Book of Shree Prabhat Hardware Stores

Note:
(1) Here, total credit sales are Rs. 70,000, which will be recorded on the credit side of Sales A/c.
(2) The following transactions will not be recorded in Sales Book:
(i) Date 12 Cash sales.
(ii) Date 15 Transaction of sales of asset (machinery).
(iii) Date 28 Cash sales.
(iv) Date 29 Non-economic transaction.
(3) Transaction of Date 23 is recorded by considering the entire transaction as a credit transaction.
(4) Date 8 Carriage Rs. 400 will be recorded in the Journal proper.
In simple words: This sales book lists all sales made on credit by Shree Prabhat Hardware Stores. Cash sales and asset sales are not included. If a sale involves both cash and credit, the entire transaction might be treated as a credit sale for this book, and expenses like carriage are often recorded in a separate journal.

Exam Tip: Always remember to exclude cash transactions and sales of assets from the Sales Book, as it specifically tracks credit sales of goods.

 

Question 8. Nitin Stores deals in clothes. From the following transactions, prepare Columnar Sales Book in the books of Nitin Stores. Nitin Stores deals in three types of clothes namely Cotton, Khadi and Silk.
2015
May 1 Sold to Janki Stores 100 metres cotton cloth at Rs. 40 per metre, 200 metres khadi at Rs. 20 per metre and 50 metres silk at Rs. 200 per metre with 10 % trade discount. Bill no, 125. Credit period 3 months.
8 Sold to Gopi Traders 200 metres cotton cloth at Rs. 60 per metre and 80 metres silk at Rs. 190 per metre at 10 % trade discount. Goods sold on 2 months credit. Bill no. 126 sent. Gopi Traders paid half of the amount immediately in cash.
15 Sold to Misarg Trading Co. 100 metres khadi and 50 metres silk at Rs. 40 and Rs. 200 per metre respectively. Misarg Trading Co. paid amount immediately by cheque at 10% trade discount and 10% cash discount. Bill no. 127.
20 Preeti Stores place an order for the supply of 40 metres khadi, 60 metres cotton cloth and 100 metres silk cloth.
22 Preeti Stores as per her order under bill no. 128 at Rs. 30 per metre, Rs. 50 per metre and Rs. 220 per metre respectively at 10 % trade discount allowed.
26 Sold to Desai & Company cotton cloth of Rs. 15,000 at 10 % trade discount under bill no. 129.
30 Sold to DCM Stores khadi goods of Rs. 20,000 at 5 % trade discount. Sent bill no. 130 after adding 13% GST.
Answer:
Columnar Sales Book of Nitin Stores

Note:
(1) Date 30 output COST of Rs. 1,710 and output SGST of Rs. 1,710 will be recorded in Journal Proper.
(2) The following transactions will not be recorded in Sales Book:
(i) Date 15 Transaction of cash sales.
(ii) Date 20 Non-economic transaction.
(3) Transaction of Date 8 is recorded considering the whole transaction as a credit transaction.
In simple words: This columnar sales book tracks credit sales for different types of clothes (Cotton, Khadi, Silk). Cash sales and simple orders are not listed here. For combined transactions, the full amount is usually recorded as a credit sale, and any extra costs or taxes not directly part of the goods' value are noted elsewhere.

Exam Tip: For columnar books, always correctly categorize each item sold into its specific column and ensure trade discounts are deducted before calculating the net sale amount. Cash transactions and mere orders should be excluded.

 

Question 9. From the following transactions prepare sales book with columns of expanse in the books of Sachin Stores of Navsari. Sachin Stores maintains record of expenses like GST, railway freight and labour. Prepare sales book by applying total GST rate of 18 %. GST is not included for the following transactions. Add applicable amount of GST and prepare sales book.
2018
December 1 Goods sold of Rs. 60,000 at 10 % trade discount to Dhoni Stores. Railway freight is 2,000 and invoice no. 101.
16 Goods sold of 30,000 at 5% trade discount on credit of 1 month to Raina.. Bill no. 110 send after adding Rs. 500 for labour and Rs. 1,000 for railway freight.
20 A machine of Rs. 35,000 sold to Jadeja Stores. Labour charges paid Rs. 700. Jadeja Stores gave guarantee to pay amount in 15 days.
25 Goods sold of Rs. 25,000 at 5 % trade discount on credit of I month to Rohit of Jodhpur (Rajasthan). Railway freight Rs. 1,000. Rohit paid half amount of total amount immediate. Bill no. 115.
30 Goods sold of Rs. 15,000 at 10% trade discount on credit of 1 month to Umesh of Kolkatta (West Bengal). By adding railway freight of Rs. 1,000. Invoice no. 118 sent.
31 An order of Rs. 70,000 is received from Yuvraj.
Answer:
Columnar Sales Book with expenses of Sachin Stores

Note:
(1) The following transactions will not be recorded in Sales Book :
(i) Date 10 Cash sales.
(ii) Date 20 Sales of asset.
(iii) Date 31 Non-economic transaction.
(2) Transaction of Date 25 is recorded considering the whole transaction as a credit transaction.
In simple words: This sales book includes columns for various expenses and GST, showing how these charges influence the total amount for credit sales. Transactions involving cash sales, asset sales, or simple orders are excluded. Interstate sales use IGST, while intrastate sales use CGST and SGST, with the tax applied to the goods value plus any related freight and labor.

Exam Tip: When preparing columnar sales books with expenses, ensure you correctly identify whether a transaction is intrastate or interstate to apply the appropriate GST (CGST/SGST or IGST) and include all taxable components in the base for GST calculation.

 

Question 10. From the following transactions, prepare Purchase Book and Purchase Returns Book in the books of Gujarat Stores:
2018
Jan. 1 Purchased goods of Rs. 1,00,000 from Punjab Stores at 5 % trade discount.
3 Purchased goods of Rs. 60,000 from Maharashtra Stores. Credit period 1 month. Trade discount 10%, bill no. 330.
10 Purchased goods of Rs. 50,000 from Kerala Stores on credit. 50 % of the amount paid immediately.
17 Returned \( \frac{1}{3} \) rd of goods purchased from Maharashtra Stores. Sent debit note no. 43 for the amount thereof.
21 Purchased goods of Rs. 40,000 from Rajasthan Stores at 10% trade discount. Rajasthan Stores sent a bill no. 160 after charging 5 % value added tax and Rs. 400 for carriage.
25 Purchased goods of Rs. 50,000 from Uttar Pradesh Stores on credit. Credit period 2 months. Trade discount 10%, Bill no. 380.
29 Returned 30 % of the goods purchased from Uttar Pradesh Stores and sent debit note no. 44 with goods.
30 Placed an order with Madhya Pradesh for supply of goods of Rs. 80,000 at 10% trade-discount.
31 Purchased goods of Rs. 30,000 from Haryana Stores at 10% trade discount and 5% cash discount on cash.
Answer:
Purchase Book of Gujarat Stores

Purchase Return Book of Gujarat Stores

Note:
(1) The following transactions will not be recorded in Purchase Book and in Purchase Return Book:
(i) Date 30 Non-economic transaction.
(ii) Date 31 Transaction of cash purchases.
(2) The whole transaction of Date 10 is recorded in purchase book considering it as a credit purchase.
In simple words: This question involves preparing two books: one for all credit purchases made by Gujarat Stores, and another for any goods returned by them. Only credit purchases of goods are entered in the purchase book, while cash purchases, asset purchases, and orders are excluded. Returns of purchased goods are recorded in the purchase returns book.

Exam Tip: Clearly differentiate between cash and credit transactions. Only credit purchases of goods belong in the Purchase Book, and similarly for returns in the Purchase Returns Book.

 

Question 11. From the following transactions, prepare Sales Book and Sales Returns Book in the books of Pratibha Furniture Mart:
2018
Sept. 1 Sold goods of Rs. 10,000 to Rajesh Furniture Mart at 10 % cash discount. He paid half of the amount immediately.
5 Sold goods of Rs. 8,000 at 10 % trade discount and 5 % cash discount to Pushpa. Credit period 1 month. Sent bill no. 130 after charging Rs. 100 for carriage.
12 Sold goods of Rs. 4,000 at 10 % trade discount and 5 % cash discount;
15 Rajesh returned goods of Rs. 5,000. Sent credit note on. 16 after receipt of the returned goods.
20 One old machine sold to Manju for Rs. 3,000. Credit period 1 month.
22 Sold goods of Rs. 30,000 to Harish at 5 % trade discount. Bill no. 136 sent after charging 5 % GST and Rs. 200 for wages.
23 Sold goods of Rs. 20,000 to Nita on one month credit. Trade discount 10 %, cash discount 10%.
30 Mukesh placed an order for supply of goods for Rs. 15,000.
Answer:
Sales Book of Pratibha Furniture Mart

Sales Return Book of Pratibha Furniture Mart

Note:
(1) The following transactions will not be recorded in Sales Book as well as in Sales Return Book:
(i) Date 12 Transaction of cash sales.
(ii) Date 20 Transaction of sales of asset.
(iii) Date 30 Non-economic transaction.
(2) The whole transaction of Date 1 is recorded in sales book considering it as a credit sales.
(3) Date 22 output COST Rs. 712.50, output SGST Rs. 712.50 and wages Rs. 300 will be recorded in Journal Proper.
In simple words: This task requires preparing a Sales Book and a Sales Returns Book for Pratibha Furniture Mart. The Sales Book records credit sales of furniture, excluding cash sales, asset sales, and orders. The Sales Returns Book tracks goods returned by customers that were originally sold on credit. Specific expenses or tax components may be accounted for in a separate journal.

Exam Tip: Be cautious with mixed transactions where part of the amount is paid immediately; typically, if a credit period is mentioned, it's treated as a credit transaction for the Sales Book.

 

Question 12. Prepare Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book in the books of P. K. Stores from the following transactions:
2015
Nov. 1 Purchased goods of Rs. 30,000 from Ramanuj at 10% trade discount. Bill no. 120.
4 Purchased goods of Rs. 12,000 from Nirmi at 10 % cash discount. Credit period 1 month. Bill no. 130.
6 Sold goods of Rs. 15,000 to Suresh at 5% trade discount and 3% cash discount under Bill no. 350.
11 Purchased goods of Rs. 10,000. Cash Memo no. 58.
15 Suresh returned goods of Rs. 3,000. Credit note no. 20 sent to Suresh.
17 40% goods returned to Nirmi and debit note no. 17 sent.
19 Purchased furniture of Rs. 7,000 from Shree Saraswati Furniture Mart.
20 Purchased goods of Rs. 90,000 from Aunti. Half of the amount paid immediately.
21 All the goods purchased from Aunti sold to Bala for Rs. 1,08,000. Credit one month. Trade discount 10%. Bill no. 360.
23 Bala returned half of the goods which was sent to Aunti.
24 Karan placed an order for Rs. 30,000 at 10 % trade discount for supply of goods.
25 Goods sent to Karan as per order. Rs. 500 added for carriage under bill no. 365.
26 Cash purchase Rs. 16,000 and cash sales Rs. 20,000.
27 Returned goods to Sweety of Rs. 10,000 which was purchased in October and sent debit note no. 20.
30 Karan returned half of the goods and proportionate amount of carriage was given credit.
Answer:
Purchase Book of P. K. Stores

Purchase Returns Book of P. K. Stores

Sales Book of P. K. Stores

Sales Returns Book of P. K. Stores

Note:
(1) The following transactions will not be recorded :
(i) Date 11 Cash purchases. It will be recorded in cash book.
(ii) Date 19 Purchase of furniture (asset) which is on credit, it will be recorded in journal proper.
(iii) Date 24 Non-economic transaction.
(iv) Date 26 Cash transaction, it will be recorded in cash book.
(2) The whole transaction of Date 20 is recorded in Purchase Book considering it as a credit purchase.
(3) Date 25 wages Rs. 500 will be recorded in cash book.
(4) Date 30 : Amount of proportional wages will be debited as wages A / c and with same amount Karan A/c will be credited in journal proper.
In simple words: This solution requires preparing four key subsidiary books for P. K. Stores: Purchase, Sales, Purchase Returns, and Sales Returns. Each book records specific types of credit transactions related to goods. Cash transactions, asset transactions, and mere orders are excluded from these books, often being handled in the cash book or journal proper instead. Trade discounts are applied, but cash discounts are typically ignored for credit entries.

Exam Tip: For complex questions involving multiple subsidiary books, carefully read each transaction and apply the exclusion rules for cash, asset, and non-economic entries to avoid errors. Pay attention to how partial payments or "whole transaction as credit" notes impact entries.

 

Question 13. From following transactions prepare subsidiary books along with expenses amount in the books of Sajan Traders of Surendranagar prepare subsidiary book on the basis of total GST rate of 12 %. GST is not included for following transactions. Add applicable amount of GST, prepare subsidiary books:
2018
1 Goods purchased of Rs. 20,000 at 10 % trade discount from Viramgam Stores. Railway freight Rs. 1,000. Invoice no. 171.
5 Goods of Rs. 30,000 purchased from Manisha of Varanasi (UP). Railway freight Rs. 1,200, labour charges Rs. 400. Invoice no. 204.
11 Goods of Rs. 15,000 sold to Dattu Corporation at 10% trade discount. Labour charges Rs. 600, railway freight Rs. 900. Invoice no. 231.
16 Goods purchased from Manisha, sold to Aaliya of Mumbai (Maharashtra) after adding 20% profit on cost price. Railway freight Rs. 1,200, labour Rs. 300, credit period 1 month and invoice no. 232.
18 Aaliya has returned 50 % goods. The proportionate amount GST, railway freight and labour charges are adjusted. Credit note no. is 15. This goods immediately returned back to Manisha. The proportionate amount of GST, railway freight and labour charges are adjusted. Debit note no. 30.
20 Goods of Rs. 30,000 sold to Shresth Corporation. Labour charge Rs. 250, railway freight 600. Invoice no. 240.
25 Furniture of Rs. 18,000 purchased from Gandhi Furniture Mart. Invoice no. 120.
27 50 % goods returned by Dattu Corporation. The Proportionate amount of railway freight, labour and GST are adjusted. Credit note no. 16.
28 Goods of Rs. 10,000 purchased on cash from Raju.
30 Goods sold of Rs. 15,000 on cash to Kanu.
Answer:
Columnar Purchase Book with goods and expenses of Sajan Traders

Columnar Sales Book with goods and expenses of Sajan Traders

Columnar Purchase Return Book with goods and expenses of Sajan Traders

Columnar Sales Return Book with goods and expenses of Sajan Traders

Note:
The following transactions will not be recorded :
(i) Date 25 Purchase of asset transaction. It will be recorded in Journal Proper.
(ii) Date 28 Cash purchases. It will be recorded in cash book.
(iii) Date 30 Cash sales. It will be recorded in cash book.
In simple words: This question requires preparing four detailed columnar subsidiary books for Sajan Traders, including expenses and GST. This means tracking credit purchases, credit sales, purchase returns, and sales returns, with special columns for freight, wages, and appropriate GST (CGST/SGST for intrastate, IGST for interstate). Cash transactions and asset purchases/sales are excluded from these books.

Exam Tip: For transactions involving GST and additional expenses, ensure the GST is applied to the correct taxable base, which often includes the net goods value plus freight and labor charges. Carefully distinguish between intrastate and interstate transactions for GST calculation.

 

Question 14. Prepare columnar subsidiary books viz. Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book in the book of Nirmi Sports Stores:
2015
May 1 Purchased following goods from Santa at 10 % trade discount and 5 % cash discount with 1 month credit:
Balls 200 nos. at Rs. 150 per piece
Bats 100 nos. at Rs. 800 per piece
Stump pair (nos.) 50 at Rs. 300 per pair.
5 Sold following goods to Malik at 5 % trade discount:
Balls 60 nos. at Rs. 250 per piece
Bats 30 nos. at Rs. 1000 per piece
Stump pair (nos.) 10 at Rs. 500 per pair
10 Purchased following goods from Kapil at 10 % trade discount:
Balls 30 nos. at Rs. 160 per piece
Bats 20 nos. at Rs.1200 per piece
Stump pair (nos.) 6 at Rs. 400 per pair
13 Following goods sold to Yusuf at 5% trade discount:
Balls 40 nos. at Rs. 200 per piece
Bats 30 nos. at Rs. 1300 per piece
Stump pair (nos.) 10 at Rs. 700 per pair
15 Yusuf returned half of the goods. Credit note no. 21 sent to him.
20 Following goods returned to Sania:
Balls 10 nos.
Bats 5 nos.
Stump pair 3 nos.
25 Half of the goods purchased from Kapil were sold to Sehwag after adding 20 % profit on cost.
27 Sehwag returned all of the goods which were returned to Kapil.
30 Cash purchase:
Balls 60 nos. at Rs. 120 each Bats 50 nos. at Rs. 400 each Stump 10 pairs at Rs. 200 each Cash sales:
Balls 40 nos. at Rs. 200 each Bats 30 nos. at Rs. 800 each
Answer:
Columnar Purchase Book of Nirmi Sports Stores

Columnar Sales Book of Nirmi Sports Stores

Columnar Purchase Returns Book of Nirmi Sports Stores

Columnar Sales Returns Book of Nirmi Sports Stores

Note : The following transaction will not be recorded :
Date 30 Cash purchases and Cash sales, it will be recorded in cash book.
In simple words: This question requires preparing four types of columnar subsidiary books for Nirmi Sports Stores, specializing in sports goods. Each book categorizes transactions by specific product (Balls, Bats, Stumps). Trade discounts are applied before calculation, but cash discounts are typically ignored for credit entries. Transactions like cash purchases/sales are excluded from these books and instead recorded in the cash book.

Exam Tip: For columnar subsidiary books with multiple product categories, ensure all calculations for quantities, rates, trade discounts, and profit margins are correct for each product type. Accurately matching returns to their original purchase/sale transaction is also critical.