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

Return of goods by a customer is a Sales Return (Return Inward), which is debited to the Sales Return Account. Return Outward refers to the return of goods to a supplier (Purchase Return).

A positive exposure means the company has net assets in a foreign currency. If that currency appreciates, the value of those assets in the reporting currency increases, resulting in a translation gain.

Legal requirements for director disqualification specify that a person must be declared of unsound mind by a court of competent jurisdiction for the disqualification to be legally binding.

Transactions that do not fit into specialized books like the cash book, sales book, or purchase book are recorded in the Journal Proper.

Amount paid as repairs of a machine is a capital expenditure and should have been debited to Machine A/c and not repair A/c.

Purchase book is a special purpose subsidiary book prepared by a business to record all credit purchases.

Outstanding salary is an adjustment entry. Since it does not involve cash, bills, or inventory purchases, it is recorded in the Journal Proper.

The sale of an asset (investment) on credit is not a regular trade transaction. Therefore, it is recorded in the General Journal (Journal Proper) rather than the Sales Book.

When a cheque is dishonored, the discount previously recorded must be reversed. This is done by debiting the discount account and crediting the creditor's account through the Journal Proper.

Sales Book is a book in which non-cash sales are recorded with details of customer, invoice, amount and date; these details are later posted to each customer's account in the sales ledger.