Module 2 – Subsidiary Books

Illustration 1

Record the following transactions in the Purchases Journal of M/s. Dharam Chand &
Co., and show the ledger postings.

Date Particulars Rs.

1987
July 1 Bought goods from Shreedhar 5,000
July 2 Purchased goods from Shreekant 4,000
July 3 Purchased from Shreenivas goods worth 2,500
July 4 Shreedhar sold us goods 1,500
July 5 Purchased goods from Sheenivas subject to a trade discount of 10% 3,000
July 6 Bought from Shreekant goods worth with a discount of 20% 3,500

Illustration 2
The Rough Book of M/s. Narain & Co. contains the following:
2025 Feb.
1. Purchased from Brown & Co. on credit:
5 gross pencils @ ₹100 per gross,
1 gross register @ ₹240 per dozen.
Less: Trade Discount @ 10%
2. Purchased for cash from the Stationery Mart:
10 gross exercise books @ ₹300 per dozen.
3. Purchased computer for office use from M/s. Office Goods Co. on credit for
₹30,000.
4. Purchased on credit from The Paper Co.:
5 reams of white paper @ ₹100 per ream.
5. 10 reams of ruled paper @ ₹150 per ream.
Less: Trade Discount @ 10%
6. Purchased one dozen gel pens @ ₹15 each from M/s. Verma Bros. on credit.
Make out the Purchase Book of M/s. Narain & Co.

Illustration 2
M/s. FabStyle Garments (Garment Retailer)
April 2025
1. April 2 – Purchased on credit from M/s. Cotton & Co.:
50 cotton shirts @ ₹400 each
Less: Trade Discount @ 10%
2. April 5 – Purchased on credit from M/s. Trendy Textiles:
30 denim jeans @ ₹700 each
3. April 7 – Purchased hangers and racks (fixtures) for showroom from M/s.
Display World on credit ₹12,000
4. April 10 – Purchased 20 silk sarees @ ₹1,200 each from M/s. Elegant Fab on credit
Less: Trade Discount @ 5%
Prepare the Purchase Book for M/s. FabStyle Garments
Illustration 3
M/s. SmartConnect Mobiles (Mobile Store)
June 2025

1. June 1 – Purchased on credit from M/s. Phone Traders:

10 units of Model X @ ₹12,000 each
5 units of Model Y @ ₹18,000 each
Less: Trade Discount @ 5%
2. June 3 – Purchased billing printer for shop use from M/s. TechServe on credit for
₹9,500
3. June 6 – Purchased mobile accessories (chargers & cases) from M/s. Gadget
World on credit ₹5,000
4. June 9 – Purchased for cash from local market:
6 display stands @ ₹1,200 each
Enter relevant transactions in the Purchase Book for M/s. SmartConnect Mobiles

Illustration 4
M/s. BuildPro Hardware (Hardware and Tools Supplier)
August 2025
1. August 3 – Purchased the following from M/s. Steel & Tools on credit:
20 hammers @ ₹150 each
30 screwdrivers @ ₹100 each
Less: Trade Discount @ 10%
2. August 6 – Purchased office chairs on credit from M/s. Office Plus @ ₹2,500 each
(3 chairs)
3. August 8 – Purchased 15 electric drills @ ₹2,000 each from M/s. PowerTools Ltd.
on credit
4. August 12 – Purchased for cash from M/s. PrintX: 5 reams of paper @ ₹100 each
Prepare the Purchase Book for M/s. BuildPro Hardware

Illustration 5
Enter the following transactions in Purchase Book and post them into ledger.
April 4 Purchased from Ajay Enterprises, Delhi
• 100 Dozen Rexona Hawai Chappal @ ₹120 per dozen
• 200 Dozen Palki Leather Chappal @ ₹300 per dozen
• Less: Trade Discount @ 10%
• Freight charged ₹150
April 15 Purchased from Balaji Traders, Delhi
• 50 Dozen Max Shoes @ ₹400 per dozen
• 100 Pairs Sports Shoes @ ₹140 per pair
• Less: Trade Discount @ 10%
• Freight charged ₹200
April 28 Purchased from Tripti Industries, Bahadurgarh
• 40 Pairs Leather Shoes @ ₹400 per pair
• 100 Dozen Rosy Hawai Chappal @ ₹180 per dozen
• Less: Trade Discount @ 10%
• Freight charged ₹100
Illustration 6
M/s. Urban Interiors – Purchase Book & Ledger Posting. Transactions for May 2025
May 2 Purchased from M/s. WoodCraft India, Delhi:
10 Teakwood Tables @ ₹5,000 each
15 Chairs @ ₹1,200 each
Less: Trade Discount @ 10%
May 4 Purchased from M/s. Creative Furnishers, Mumbai:
8 Office Desks @ ₹3,500 each
5 Revolving Chairs @ ₹2,800 each
Less: Trade Discount @ 5%
May 6 Purchased for cash from M/s. City Plywood:
12 Plywood Sheets @ ₹900 each
(Not recorded in Purchase Book – cash transaction)
May 8 Purchased from M/s. Comfort Seating, Hyderabad:
20 Cushioned Chairs @ ₹1,800 each
Freight ₹500 paid extra
Less: Trade Discount @ 10%
May 10 Purchased from M/s. Elegant Interiors, Bengaluru:
5 Sofa Sets @ ₹12,000 each
Less: Trade Discount @ 10%

Illustration 7
Prepare the Sales Journal of M/s. Bharat Furniture Works, Delhi from thefollowing
transactions:
2024
Aug. 1 Sold to Doulath Furniture House, Delhi
50 Chairs @ Rs. 150 each
10 Tables @ Rs. 500 each
At a trade discount of 10%
Supplied the following furniture, as per the order, to Kesav Memorial School, Mehraulli
100 Chairs @ Rs. 135 each
40 Tables @Rs. 450 each
2 Almirahs @Rs. 750 each
5 Black boards @ Rs. 800 each
Supplied on credit to Pyarelal Furniture Palace, Okhla
10 Sofa sets @ Rs. 800 each
10 Dining tables @ Rs. 500 each
5 Cots @ Rs. 600 each
5 Dining tables @ Rs. 800 each
Trade discount 10%

Illustration 8
The following are some of the transactions of M/s Kishore & Sons of the year 2022 as per
their Waste Book. Make out their Sales Book.
Sold to M/s. Gupta & Verma on credit:
• 30 shirts @ ₹800 per shirt.
• 20 trousers @ ₹1,000 per trouser.
Less: Trade Discount @ 10%
Sold furniture to M/s. Sehgal & Co. on credit ₹8,000.
Sold 50 shirts to M/s. Jain & Sons @ ₹800 per shirt.
 Sold 13 shirts to Cheap Stores @ ₹750 each for cash.
Sold on credit to M/s. Mathur & Jain:
• 100 shirts @ ₹750 per shirt.
• 10 overcoats @ ₹5,000 per overcoat.
Less: Trade Discount @ 10%

Illustration 9
The following are transactions of M/s Ramesh Textiles for the year 2023 from the Waste
Book. Prepare the Sales Book.
1. Sold to M/s. Rao & Sons on credit:
25 shirts @ ₹900 per shirt.
15 jeans @ ₹1,200 per jeans.
Less: Trade Discount @ 5%.
2. Sold to M/s. Lakshmi Garments on credit:
40 kurtas @ ₹700 each.
20 trousers @ ₹1,000 each.
Less: Trade Discount @ 8%.
3. Sold furniture worth ₹12,000 to M/s. Modern Furniture Mart on credit.
4. Sold 30 shirts @ ₹800 each to M/s. Arjun Apparels for cash.
5. Sold on credit to M/s. Vivek Traders:
50 shirts @ ₹850 each.
25 jackets @ ₹2,500 each.
Less: Trade Discount @ 10%.

Illustration 10
From the following transactions of M/s Elegant Fashions for 2024, prepare the Sales
Book.
1. Sold to M/s. Suman & Co. on credit:
o 20 sarees @ ₹2,000 per saree.
o 10 lehengas @ ₹4,500 per lehenga.
Less: Trade Discount @ 5%.
2. Sold office computer to M/s. Tech Solutions for ₹25,000 on credit.
3. Sold on credit to M/s. Global Wear:
o 15 t-shirts @ ₹500 each.
o 10 shirts @ ₹800 each.
Less: Trade Discount @ 10%.
4. Sold 18 jeans @ ₹1,200 each to M/s. City Style for cash.
5. Sold to M/s. Royal Drapes on credit:
o 30 sarees @ ₹1,800 each.
Less: Trade Discount @ 6%.

Illustration 11
From the Waste Book of M/s Kumar Clothing House, prepare the Sales Book for 2025.
1. Sold to M/s. Sharma & Co. on credit:
50 shirts @ ₹850 per shirt.
30 trousers @ ₹1,050 per trouser.
Less: Trade Discount @ 7%.
 2. Sold furniture worth ₹15,000 to M/s. Wooden World on credit.
3. Sold 40 shirts @ ₹900 each to M/s. Fashion Hub on credit.
Less: Trade Discount @ 5%.
4. Sold 15 jackets @ ₹3,000 each to M/s. Cool Wear for cash.
5. Sold to M/s. Mehta Garments on credit:
20 shirts @ ₹750 each.
10 coats @ ₹4,000 each.
Less: Trade Discount @ 10%.

Illustration 12
From the following transactions, prepare the Purchases Returns Book of Alpha & Co., a
saree dealer:
Debit
Date Particulars
Note No.
04.01.2025 101 Returned to Goyal Mills, Surat – 5 polyester sarees @ ₹1,000.
09.01.2025
Garg Mills, Kota – accepted the return of goods (which were
purchased for cash) from us – 5 Kota sarees @ ₹400.
16.01.2025 102 Returned to Mittal Mills, Bangalore – 5 silk sarees @ ₹2,600.
30.01.2025 Returned one computer (being defective) @ ₹35,000 to B & Co.

Illustration 13
2024
Aug. 5 Received a debit note along with one chair and a table from Doulath Furniture
House, Delhi, saying that the legs of the chair and table are broken (remember, each chair
was sold at Rs. 150 and each table at Rs. 500 with a trade discount of 10%).

Aug. 10 Received 2 chairs and 2 tables along with a letter from Kesav Memorial School,
Mehrauli, saying that they were damaged (chairs were sold at Rs. 135 each and tables at
Rs. 450 each).

Aug. 16 Received a debit note from M/s. Pyarelal Furniture Palace, Okhla, stating that the
mirrors of two dressing tables were found defective and so returned.

Enter the above transactions in the Sales Return Journal of M/s Bharat Furniture Works,
Delhi, and show the ledger postings.

Illustration 14
From the following transactions, prepare the Purchases Returns Book of M/s Bright
Electronics, a dealer in home appliances:

Debit
Date Note No. Particulars
Returned to Zenith Appliances, Mumbai – 5 microwave ovens @
04.06.2024 401 ₹8,000 each.
PowerTech Ltd., Delhi – accepted the return of 10 extension
09.06.2024 boards @ ₹800 each purchased for cash.
 Returned to CoolPoint Refrigeration, Pune – 3 air conditioners @
14.06.2024 402 ₹32,000 each.
Returned one office chair purchased on credit @ ₹7,500 to Metro
18.06.2024 Furniture Ltd.
Returned to Spark Lighting, Ahmedabad – 15 LED ceiling lights @
22.06.2024 403 ₹1,200 each.

Illustration 15
From the following transactions, prepare the Purchases Returns Book of M/s Knowledge
Hub, a bookstore:
Debit
Date Note No. Particulars

03.08.2024 501 Returned to Elite Publishers, Kolkata – 20 copies of “Business

Law” @ ₹450 each.

07.08.2024 Universal Printers – accepted return of 15 “English Grammar”

books @ ₹300 each purchased for cash.

12.08.2024 502 Returned to Sunrise Distributors, Delhi – 10 sets of “Encyclopedia”

@ ₹2,000 per set.

17.08.2024 Returned 1 photocopy machine purchased for office use @ ₹45,000

to Copy Solutions Ltd.

24.08.2024 503 Returned to Wisdom Books, Chennai – 25 copies of “Modern

Accounting” @ ₹500 each.

Illustration 16
Enter the following transactions in the Purchases Returns Journal of M/s. Dharam Chánd
and Co. and show the ledger postings.
2025 Rs.
July 5 Returned goods to Shreekant (vide invoice No. 26) 200
“ 10 Returned goods to Shreenivas (vide invoice No. 29) 90
“ 12 Returned goods to Shreekant (vide invoice No. 30) 120

Illustration 17
Enter the following transactions in a Simple Cash Book:

Date Particulars ₹
Jan. 1 Cash in hand 1,200
Jan.5 Received from Ram 300
Jan.7 Paid Rent 30
Jan.8 Sold goods for cash 300
Jan.10 Paid to Shyam 700
Jan.27 Purchased Furniture 200
Jan.31 Paid Salaries 100
Jan.31 Rent due, not yet paid, for January 30
Illustration 18
From the following particulars of M/s Naveen & Co., prepare a Simple Cash Book and
balance the same. Also show postings into the ledger accounts.

Date Particulars Rs.

Naveen started business with a capital
Jul-01 of 25,000
Jul-02 Opened a bank account and deposited 20,000
Jul-05 Purchased goods for cash 3,000
Jul-06 Sold goods for cash 4,000
Jul-08 Purchased furniture 1,000
Jul-10 Purchased goods from Ramlal on credit 2,500
Jul-12 Sold goods to Chhotelal on credit 3,000
Jul-16 Sold goods for cash 1,000
Jul-17 Paid to Ramlal on account 2,500
Jul-19 Received from Chhotelal 2,000
Jul-22 Withdrawn cash from bank 3,000
Jul-25 Paid electricity bill 50
Jul-28 Paid rent to the landlord 350
Jul-31 Paid salary to the clerk 500

Illustration 19

Write up a Sharjeel Siraj Khan’s single column cash book for the month of April 2025,
from the following:

1. Cash in hand – ₹1,650

2. Cash sales – ₹16,000
3. Paid check to creditors – ₹4,000
4. Wages paid in cash – ₹2,250
5. Cash sales – ₹18,000
6. Paid cash to TCP – ₹420
7. Paid salaries by cash – ₹2,850
8. Credit Sales – ₹1,000
9. Note Receivable Realized – ₹3,000
10. Paid cash for repairing – ₹360
11. Sales by cash – ₹11,400
12. Paid office expense – ₹180
13. Paid rent and rates – ₹3,600
14. Cash sales – ₹19,200
15. Paid electricity bill – ₹900
16. Cash collected from debtor – ₹4,500
17. Goods Purchase – ₹2,000
18. Retire bank loan – ₹3,000

Requirement: Prepare cash book at April 30, 2025.

Illustration 20
Enter the following transactions in the single column cash book of Mr. Mobbushar Khan:

Date Transactions Rs.

Mr. Mobbushar Khan started business with
Jan. 1 cash 10,000
Jan. 3 Bought goods for cash 7,000
Jan. 7 Sold goods for cash 4,000
Jan. 10 Paid for trade expenses 1,000
Jan. 11 Sold goods for cash 1,600
Jan. 12 Credit sales 400
Jan. 13 Received commission 300
Jan. 14 Received cash from Essa Khan 5,000
Jan. 15 Paid cash to Mr. Arifullah Khan 700
Jan. 16 Expenses incurred but not paid 1,800
Jan. 18 Withdrew cash for personal use 3,000
Jan. 22 Bought machinery for cash 2,000
Jan. 23 Sold old furniture for cash 4,000
Jan. 24 Purchase on account 8,000
Jan. 25 Revenue earned but not received 1,900
Jan. 26 Paid for electricity bill 900
Jan. 31 Paid rent 1,500
Do you want me to now prepare the Single Column Cash Book for this data with
balancing?

Illustration 21
Enter the following transactions in a single column cash book of Mr. Adeel Nawaz:
2024 November
1. Started business with cash Rs. 70,000 and Land Rs. 30,000.
2. Purchased merchandising for cash Rs. 5,000.
3. Sold goods Rs. 1,700 on cash and Rs. 1,300 on account.
4. Cash received from Manzoor Alam Rs. 200.
5. Paid to Naima Kayani Rs. 150.
6. Bought furniture worth of Rs. 200.
7. Purchased goods from Muhammad Abid Tariq on credit Rs. 2,000.
8. Purchase machinery of worth Rs. 20,000 cash down payment was 5,000 and
remaining note payable.
9. Company paid Rs. 2,400 for a one-year insurance policy.
10. Received advance payment from customers Rs. 5,200, services will be provided in
December.
11. Paid electric charges Rs. 225.
12. Paid salaries Rs. 250.
13. Bought goods from Maria Muhammad Rs. 4,000 and by cash from Seemab
Akhter Co. Rs. 2,000.
14. Received commission Rs. 750.
15. Owner draws out Rs. 700 from the business for his own use.
 16. Accrued expenses Rs. 1,500.
17. Sale of marketable securities that cost Rs. 6,000 for Rs. 7,500.

Illustration 22
From the following particulars write up the two column cash book (Cash and Bank)
for Habib Ullah Sadiq Trading Co. for the month of Oct 2024:
2024 Oct
1. Cash in hand Rs. 16,000; Bank balance Overdraft Rs. 4,000
2. Paid Salaries and Wages Rs. 1,200 by cash and Rent by check Rs. 400
3. Cash Sales Rs. 5,000 and Credit Sales Rs. 1,000
4. Rs. 3,000 bring by owner of the business, of which Rs. 2,000 was banked and the
balance was retained
5. Received a check from Mr. Kamal and deposited into the bank of worth Rs. 8,000
6. Withdrew from bank for business purpose Rs. 3,000 and for office use Rs. 7,000
7. Received check from Ahmed of Rs. 12,000 which was not deposited in same date
8. Purchased goods for cash Rs. 2,400
9. Ahmed check received on 13th October were deposited into bank
10. Paid Insurance Premium by check of Rs. 800
11. Sales by cash Rs. 8,000
12. Check received from Ahmed was dishonored and returned by bank

Illustration 23
Ganesh commenced business on 1st April, 2025 with ₹2,000 as capital. He had the
following cash transactions in the month of April 2025:
Date Particulars ₹ Date Particulars ₹
Purchased furniture and paid Paid for petty
Apr-01 cash 250 Apr-07 expenses 15
Apr-02 Purchased goods 500 Apr-08 Cash purchases 150
Apr-04 Sold goods for cash 950 Apr-13 Paid for labour 1,000
Apr-05 Paid cash to Ram Mohan 560 Apr-13 Paid Ali & Sons 400
They allowed
Apr-06 He allowed discount 10 Apr-13 discount 8
Received cash from Krishna
Apr-06 & Co. 600
Allowed discount 20

Make out the two-column Cash Book (Cash and discount column) for the month of April,
2025.

Illustration 24
Record the following transaction in a suitable cash book of Ms. Anjum Iqbal for the
month of March 2025, and show the closing balances of cash and bank (all figures in
rupees):

1. He had cash in hand – 50,000

2. Opened a Bank Account – 30,000
3. Received cash from customer Ahmed – 4,000
4. Paid to creditor Ali by bank – 500
5. Purchase by cash – 1,000
 6. Rent paid – 250
7. Owner withdrawn by bank – 3,000
8. Cash Sales – 5,000
9. Received check from Debtor Jamal – 10,000
10. Paid wages – 200
11. Buy furniture paid check – 4,000
12. Cash Purchases of Inventory – 3,000
13. Deposited Jamal’s check – 10,000
14. Drawing by cash – 1,500
15. Paid Electricity bill by check – 350
16. Taxes payment made – 100
17. Merchandising purchases by bank – 7,000
18. Sales by check (not deposited) – 12,000
19. Sales to Bilal on credit – 5,000
20. Purchase Machinery – 2,000
21. Received debtor’s check and deposited – 3,000
22. Paid railway freight by bank – 250
23. Purchase stamps & stationery – 20
24. Withdrawal cash for business use – 2,500

Illustration 25
From the following transactions of M/s. Joshi & Sons, prepare Cash Book and show the
ledger postings:
2024 Aug.
1 — Cash in hand — ₹4,270
5 — Purchased an old typewriter for — ₹1,500
7 — Received cash from Singh & Co. ₹1,980 and allowed discount of ₹20
10 — Cash Sales — ₹5,500
12 — Paid to Ram Narain ₹2,970 and he allowed a discount of ₹30
14 — Sold old newspapers for ₹60
16 — Received from Prasad ₹985 in full settlement of his account for ₹1,000
18 — Purchased goods worth from Sanjeev Bros. at a trade discount of 10% and paid
cash — ₹2,000
20 — Sold goods worth for cash at a trade discount of 5% — ₹1,000
24 — Settled the account of Tiwari by paying the necessary amount after deducting a
discount of 3% — ₹500
30 — Paid rent — ₹500
30 — Deposited in the bank the cash in excess of — ₹1,490

Illustration 26
Enter the following transactions in Cash Book with Discount and Bank Columns.
Cheques are first treated as cash receipt.
2024
Date Particulars ₹
Jan. 1 Chandrika commences business with Cash 20,000
Jan. 3 He paid into Current A/c 19,000
Jan. 4 He received cheque from Kirti & Co. on account 600
Jan. 7 He pays in bank Kirti & Co.’s cheque 600
 He pays Rattan & Co. by cheque and is allowed discount
Jan. 10 ₹20 330
Jan. 12 Tripathi & Co. pays into his Bank A/c 475
He receives cheque from Warshi and allows him discount
Jan. 15 ₹35 450
Jan. 20 He receives cash ₹75 and cheque ₹100 for cash sale
He pays into Bank, including cheques received on 15th and
Jan. 25 20th 1,000
Jan. 27 He pays for cash purchase 275
Jan. 30 He pays sundry expenses in cash 50