Purchase Day Book, Sales Day Book and Other Subsidiary Books

Purchase Day Book

The purchase day book record the transactions related to credit purchase of goods only.  It follows that any cash purchase or purchase of things other than the goods is not recorded in the purchase day book.  Periodically, the totals of purchase day book are posted to Purchase Account in the ledger.  The specimen purchase Day book is given below:

In the books of -------------

Purchase day book

Date	Name of the Supplier and details of Goods Purchased	Invoice reference	L.F	Amount	Remarks

The format for purchase return is exactly the same; hence separate illustration is not given.

Let us see an illustration for following transactions for a furniture shop:

1.       Bought 20 tables @500 per table from Majestic Appliances on credit @12% trade discount as per invoice number 22334 on 2^nd March.

2.       Purchased three dozen chairs @250 each from Metro chairs as per invoice number 1112 on 4th March.

3.       Second hand furniture bought from Modern furnitures on credit as per invoice number 375 for Rs.1200 on 7^th Marth.

4.       Purchased seven book racks from Mayur furnitures for Rs.4900 paid for in cash on 6^th March.

5.       Purchased Machinery for Rs.30000 from Kirloskar ltd on 9^th march as per invoice number 37.

In the books of furniture shop

Purchase day book

Date	Name of the Supplier and details of Goods Purchased	Invoice reference	L.F	Amount	Remarks
2nd March	Majestic Appliances 20 tables @ 500 and 12% trade discount [(20*500)=10000 less 12% discount i.e.1200]	22334		8800
4th March	Metro chairs 3 dozen chairs @250 per chair	1112		9000
7th March	Modern furnitures	375		1200
	Total			19000

     Please note that the transaction for purchase of book rack will not be entered in the purchase book as it is not purchased on credit.  (Where will it go then? It will go to the cash book).  Similarly purchase of machinery will not form part of purchase book.  It will be entered in journal proper.

Sales Day Book

The sales day book records transaction of credit sales of goods to customers.  Sale of other things, even on credit, will not be entered in the sales day book but will be entered in Journal Proper.  If goods are sold for cash, it will be entered in cash book.  Total of sales day book is periodically posted to sales account in the ledger. The specimen of a sales day book is given below

In the books of -----------------

Sales day book

Date	Particulars	Invoice reference	L.F	Amount	Remarks

    The format of sales return book is exactly the same as in the case of purchase day book.

Let us see how will be the following transactions recorded in the books of a cloth merchant.

1^st july Sold Titp Top clothing 50 suits of Rs.2200 each on two months credit on invoice number -2

11^th july Sold to new india Woolen 100 Sweaters @250 each on invoice number 55

13^th july Received an order from Modern clothing for 100 trousers @500 at trade discount of 10%

17^th july sold 50 sarees to Lunkad brothers @750 each

25^th july Sold T-shirts at exhibition hall for cash Rs.7500

In the books of cloth Marchant

Sales day book

Date	Particulars	Invoice reference	L.F	Amount	Remarks
1st July	Tip Top Clothing 50 Suits @2200	2		110000
11th july	New India Woolen 100 Sweaters @250	55		25000
17th july	Lunkad brother 50 sarees @750			37500
	Total			172500

Here again, cash sales at exhibition hall are not recorded.  Also merely getting an order for goods is not a transaction to be entered in sales book.

Other subsidiary Books – Returns Inward, Return Outward, Bills Receivable, Bills Payable

1.       Return Inward Book- The transactions relating to goods which are returned by the customers for various reasons, such as not according to sample, or not up to the mark etc contain in this book, it is also  known as Sales Return book.

Generally when a customer returns good to suppliers he issues a Debit Note for the value of the goods returned by him.  Similarly the supplier who receives those goods issues a Credit note.

Returns Inward Day Book

Date	Particulars	Outward invoice	L.F	Details	Totals	Remarks

2.       Return Outward Book- This book contains the transactions relating to goods that are returned by us to our creditors e.g. goods broken in transit, not according to the sample etc.  It is also known as purchase return book.

Returns Outward Day Book

Date	Particulars	Debit Note	L.F	Details	Totals	Remarks

3.       Bills Receivable Book- It is such a book where all bills received are recorded and there from posted directly to the credit of the respective customer’s account.   The total amounts of the bills so received during the period ( either at the end of the week or month) is to be posted in one sum to the debit of bills receivable A/c

Bills receivable Day Book

No.of Bills	Date of receipt of bills	From whom	Name of the receiver	Name of the drawer	Date of bill	Due date	L.F	Amount of bill	How disposed off

4.       Bills Payable Book- Here all the particulars relating to bills accepted is recorded and there from posted directly to the debit of the respective creditor’s account.  The total amounts of the bill so accepted during the period (either at the end of the week or month) is to be posted in one sum to the credit of Bills Payable A/c.

Bills Payable Day Book

No.of Bills	Date of Acceptance	To  whom given	Name of the drawer	Where payable	Name of the Payee	Date of bill	Term	Due Date	L.F	Amount of bill	How disposed off

Journal Proper

We know that usual transactions are recorded in primary books of accounts.  If any transaction is not recorded in the primary books the same is recorded in journal proper. It includes credit purchase and credit sales of assets; transfer entries; opening entries; closing entries; adjustment entries and rectification of Errors.