Unit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRev

Principles and Practice of Accounting

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CA CPT : Unit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRev

The document Unit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRev is a part of the CA CPT Course Principles and Practice of Accounting.
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Summary

♦ Instead of recording all journal entries in one register, it is better to categorize the entries on the basis of type of transactions.
♦ Various subsidiary books are maintained so as to record transactions of one type in each register. These are also called books of original entry or prime entry.
♦ Example of subsidiary books are purchases book, sales book, purchase returns books, sales returns book, bills receivable book etc. On the basis of these subsidiary books, the ledger accounts are prepared.

Multiple Choice Questions
Ques 1: In Purchases Book the record is in respect of
(a) Cash purchase of goods.
(b) Credit purchase of goods dealt in.
(c) All purchases of goods.
Ans: b
Ques 2: The Sales Returns Book records
(a) The return of goods purchased.
(b) Return of anything purchased.
(c) Return of goods sold.
Ans: c
Ques 3: The Sales Book
(a) Is a part of journal.
(b) Is a part of the ledger.
(c) Is a part of the balance sheet.
Ans: a
Ques 4: The weekly or monthly total of the Purchase Book is
(a) Posted to the debit of the Purchases Account.
(b) Posted to the debit of the Sales Account.
(c) Posted to the credit of the Purchases Account.
Ans: a
Ques 5: The total of the Sales Book is posted to
(a) Credit of the Sale s Account.
(b) Credit of the Purchases Account.
(c) Credit of the Capital Account.
Ans: a
Ques 6: In which book of original entry, will you record an allowance of '50 was offered for an early payment of cash of '1,050 .
(a) Sales Book
(b) Cash Book
(c) Journal Proper (General Journal)
Ans: b
Ques 7: A second hand motor car was purchased on credit from B Brothers for '10,000 will be recorded in
(a) Journal Proper (General Journal)
(b) Sales Book
(c) Cash Book
(d) Purchase Book
Ans: a
Ques 8: In which book of original entry, will you record a bills receivable of '1,000, which was received from a debtor in full settlement for a claim of '1,100, is dishonoured .
(a) Purchases Return Book
(b) Bills Receivable Book
(c) Journal Proper (General Journal)
Ans: c

Theory Questions
Ques 1: Which subsidiary books are normally used in a business?
Ans: Normally, the following subsidiary books are used in a business:
(i) Cash Book to record receipts and payments of cash, including receipts into and payments out of the bank.
(ii) Purchases Book to record credit purchases of goods dealt in or of the materials and stores required in the factory.
(iii) Purchase Returns Books to record the returns of goods and materials previously purchased.
(iv) Sales Book to record the sales of the goods dealt in by the firm.
(v) Sale Returns Book to record the returns made by the customers.
(vi) Bills Receivable Books to record the receipts of promissory notes or hundies from various parties.
(vii) Bills Payable Book to record the issue of the promissory notes or hundies to other parties.
(viii) Journal (proper) to record the transactions which cannot be recorded in any of the seven books mentioned above

Practical Questions
Ques 1: Enter the following transactions in Sales Book of M/s. Pranat Engineers Ltd., Delhi.
2016
Jan. 2. Sold to M/s. Ajanta Electricals, Delhi 5 pieces of Ovens @ ₹ 6,000/- each less Trade discount @ 10%.
8 Sold to M/s. Ajanta Electricals Plaza, 10 pieces of Tablets @ ₹ 8,000/- each less trade discount 5%.
15 Sold to M/s. Haryana Traders, 5 pieces of Juicers @ ₹ 3,500/- each less trade discount @ 10%.
Ans:
Unit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRevUnit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRev
Ques 2: Post into the ledger the entries of Sales Book prepared in Question1.
Ans: 
Unit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRevUnit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRevUnit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRevUnit 4: Subsidiary Books (Question With Answer) CA CPT Notes | EduRev

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