Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Subsidiary books

Khalid Masroor (Teacher) (99 Points)

05 July 2019

I prepare Sales and Purchases book for credit transactions.
The total of such books is to be carried to Sales and Purchases account respectively.
What is the Journal entry for carrying these amounts from book to account. Or carry is made by some other means.

Reply
Follow
Share

9 Replies

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 06 July 2019

Purchase Ac Dr.
To Sundry as per Purchase Book

Sundry as per Sales Book ac Dr
To Sales Ac.

Khalid Masroor (Teacher) (99 Points)
Replied 06 July 2019

Is any journal entry required for posting items from cash Book to respective accounts

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 07 July 2019

Entries are required to post transaction from cashbook to all ledgers other than cash account.
Because cash book is similar to cash account hence no need to prepare cash account.

Khalid Masroor (Teacher) (99 Points)
Replied 07 July 2019

Sir, if I record cash sales in cash book directly. then what will be journal for recording the same in sales account

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 07 July 2019

yes it will be recorded in sales account because Cash book is journal but sales account is ledger.

Khalid Masroor (Teacher) (99 Points)
Replied 07 July 2019

will it be recorded directly or a particular journal entry is to be passed

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 07 July 2019

No need to pass journal entry because cash book is itself journal. For eg a transaction of cash received from ram is recorded in debit side of cash book os read as
Cash Dr.
To Ram

since it is recorded in cashbook and we will not prepare cash account seprately because both are same but we have to prepare Ram s account and post this transaction in Ram S ledger.