Books and Accounts

Meaning and Definition Petty Cash Book is an accounting book used for recording cash expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. These are expenses which are incurred day after day; usually, petty expenses are large in quantity but insignificant in value. To record […]

Cash Book A Cash Book is a type of subsidiary book where cash (or) bank receipts and cash (or) bank payments made during a period are recorded in a chronological order. Receipts are recorded on the debit – the left hand side, and payments are recorded on the credit – right hand side. Entries are recorded […]

Bills Payable Book Also known as a B/P book, bills payable book is a subsidiary or secondary book of accounting where all bills of exchange, which are payable by the business, are recorded. The total value of all the bills payable for an accounting period is transferred to the books of accounts. In a mid […]

Bills Receivable Book Also known as a B/R book, bills receivable book is a subsidiary or secondary book of accounting, where all bills of exchange, which are receivable for the business, are recorded. The total value of all the bills receivable for an accounting period is transferred to the books of accounts. In a mid […]

Journal Proper or General Journal Journal Proper is mainly used for original records of a transaction which due to their importance or rareness of occurrence do not find a place in any of the subsidiary books of accounting. It is also known as a Miscellaneous Journal and it looks much like any other journal. Sample […]

Sales Return or Returns Inward Book When a business sends the ordered goods back to a vendor it is recorded in the sales return book. At times the buyer may return goods due to poor quality, inaccurate quantity, untimely delivery or other reasons. It is also called returns inwards and an appropriate sales return or […]

Purchase Returns or Returns Outward Book At times it may be necessary to return few goods back to a supplier when an order is received, this may be due to poor quality, inaccurate quantity, untimely delivery or other reasons. Purchase returns are also called returns outward and an appropriate purchase returns/returns outward book is maintained. All returns […]

Sales Book Sales book records all credit sales made by a business. It is one of the secondary book of accounts and unlike cash sales which are recorded in cash book, sales book is only to record credit sales. The amount entered in the sales book is on behalf of invoices supplied to purchasers, however, […]

Purchase Book It is also known as a Purchase journal, Invoice book or Purchase daybook. A purchase book is a special-purpose subsidiary book prepared by a business to record all credit purchases. Nowadays all these recordings occur in ERPs and only small firms resort solely to notebooks or MS Excel. A few things to note […]

Overview and Meaning Real, Personal, and Nominal Accounts List of Examples – 3 Types of Accounts PDF Download Quiz Revision Video Practice Conclusion   Overview and Meaning In accounting, an account is a specific header created for grouping similar transactions. It is maintained in a T-shaped tabular format with multiple columns containing matching transactions that […]