Fill in the blank: The Cash Book records transactions involving ___ and ___.

Cash receipts and cash payments

Subsidiary books are specialized records.

• Track specific transactions.

• Principal books summarize data.

• Aid in financial statement prep.

True or False: The Purchases Book records both cash and credit purchases.

False. The Purchases Book records only credit purchases.

What is the significance of the Particulars column in the Purchases Book?

The Particulars column records the name of the supplier and the items purchased, along with their quantities.

Fill in the blank: The Sales Returns Book is used to record ___ made by customers.

Returns of goods

What role do credit notes play in the Sales Returns process?

Credit notes are issued to customers when goods are returned, indicating the amount to be credited to their account.

Explain the importance of the journal in maintaining financial records.

The journal is vital for finance.

• Records all financial transactions.

• Shows debit and credit details.

• Facilitates error monitoring.

What is recorded in the Bills Receivable Book?

The Bills Receivable Book records promissory notes or hundies received from various parties.

True or False: The Sales Book includes cash sales.

False. The Sales Book records only credit sales.

Fill in the blank: The Purchase Returns Book tracks goods returned to ___ for credit.

Suppliers

How does the use of subsidiary books enhance efficiency in accounting?

It allows for a division of work, enabling clerks to specialize and thus become more skilled, while saving time through simultaneous processes.

What types of transactions might be recorded in the Journal (Proper)?

Transactions that cannot be recorded in the other subsidiary books, such as adjusting entries or miscellaneous transactions.