Subsidiary Books - 2 - Free MCQ Practice Test with solutions, SSC CGL

The purchase of goods on credit would be recorded in the purchases book. The purchases book is a type of special purpose subsidiary book which is used for recording only credit purchases of goods. Cash purchases of goods are recorded in the cash book. Purchase book is also called a book of original entry. Purchase book does not record purchases of other assets.

Subsidiary Books are the sub divisions of a Journal. These books are meant for recording the transactions of a similar nature in a separate book. When there are many transactions, the Journal is sub-divided into subsidiary books to record such voluminous transactions and events in one single book. These books are also termed as 'Special Purpose Books or Special Journals or Book of Original/Primary/Prime entry'.

A Pass Book is a copy of the ledger account maintained by a bank to record the transactions of its clients. Each customer is issued a separate passbook by the bank. It is the copy of the ledger account provided periodically to a customer in order to inform him/her about the transactions and balances in the account.

The correct answer is: a) Rs. 20,000

The Balance of Sales Day Book represents the total sales made. If Rs. 5,000 were recovered from debtors, it means that this amount is no longer part of the outstanding sales, so it should be deducted from the original balance.

Thus, the balance to be transferred from the Sales Day Book will be:

Rs. 25,000 - Rs. 5,000 = Rs. 20,000