Tag: sub-division of journal - 2 (subsidiary books)

Return of goods, purchased on credit is recorded under Purchase Return Book or return outward book. Purchase book shows a debit balance, so purchase return book will show credit balance. While returning the goods buyer sent a "debit note" to the seller. The debit note contains the quantity of returned goods and reason of returning goods.

Goods sold on credit when returned by the customer is recorded in returned inward book or sales return book. Sales return book shows a debit balance as it is reverse to the sales, which has credit balance. When the goods are returned by the customer one note is prepared which is called as "Credit note". The returned outward book is used to record return of goods purchased on credit.

Withdrawal slip is used to withdraw cash from the bank. It is the slip that an account holder has to fill to enable him to withdraw money from the bank. It includes the name of the account holder, amount to be withdrawn, account number and date that should be provided at the time of withdrawing money from the bank.

Special Journals (also known as subsidiary journals) are chronological records of frequently occurring transactions such as sales, purchases and cash receipts/payments.

Goods sold on credit when returned by the customer is recorded in returned inward book or sales return book. Sales return book shows a debit balance as it is reverse to the sales, which has credit balance. When the goods are returned by the customer one note is prepared which is called as "Credit note". A duplicate copy of credit note is used to record the transaction in the sales return book and the original copy is sent to the original party who returned the goods i.e. customer.

Following are memorandum books:

The journal is sub-divided into different journals known as the subsidiary books or books of prime entry or books of original entry.