Get a Summary of the Rules Maintained While Recording from Subsidiary Book from Experts
An organization needs a subsidiary book or a general journal to record all initial financial data. They are transferred to the more important financial statements for calculating current business standpoint. But just recording them randomly isn’t the rule. There are certain methods applied while noting financial transactions and there are some small narrations to help find their source also. Get the full picture with Summary of rules of posting from Subsidiary Book Assignment Help. Come and visit us at 24x7assignmenthelp.com.
Posting from different subsidiary books:
From Summary of rules of posting from Subsidiary Book Assignment Help you’ll learn that there are different types of subsidiary books. Their data are recorded in ledger accounts. We’ll discuss about some of them here:
- Recording from cash book:
The first account that will be recorded in ledger is cash book. You should know one thing about cash book that it also serves as a cash account. So recording all cash transactions into this account is very important too.
- Cash book will have both debit and credit sides. For debit side or receipt side to be recorded in the ledger will be entered as a credit value in that respective It will be under a title, By Cash/Bank A/c.
- For credit side or payment side to be recorded in the ledger will be under a title To Cash/Bank A/c and will be placed as a debit value.
- Recording from Petty cash book:
In Summary of rules of posting from Subsidiary Book Assignment Help you’ll see that many petty cash subheads are having similar transactions. They need to be totaled after end of each month.
- Total of individual petty heads are postedon the debit side of ledger account under To Petty Cash A/c.
- Petty Cash A/c is credited with expenditure until date under By Sundries as per Petty Cash Book.
- Recording from Purchases Book:
Like petty cash book, total of each month in purchases book is calculated.
- The total amount of credit purchases are written under ‘To Sundries as per the purchase book’ on the debit side of Purchases Book.
- There are personal accounts both natural and artificial which is recorded in purchases book in credit side under By Purchases A/c.
- Recording from Sales Book:
From Summary of rules of posting from Subsidiary Book Homework Help you can find that this particular book will only record credit sales and shows debtors’ name.
- Credit sales will appear in credit side of the respective nominal account in ledger.
- Debtors’ a/c will be debited with the amount credited in favor of their credit purchase.
A complete support:
There are other accounts like Purchases Return Book, Sales Return Book, Bills Receivable Book, Bills Payable Book etc. that also appear in ledger accounts maintaining some rules from subsidiary book. For a better and complete view you can always visit us at 24x7assignmenthelp.com.
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