A Double Column Cash Book is the same as a Single Column Cash Book, with the exception that an extra column of discount is added on both the debit and credit sides of the cash book.

It tracks discounts authorized on the debit side of the cash book and discounts obtained on the credit side.

The format for a two-column cash book is shown below.

2. The Purchase Book

The purchased book can only be used to record credit-only transactions. If any asset other than products is acquired on credit, it should not be recorded in this book.

Likewise, monetary purchases are not documented in this book. Thus, before a commercial transaction is put into the purchasing book, it must meet the following pair of conditions:

· Credit purchases that do not require immediate cash payment.

· The products, goods, or commodities acquired are those that are meant for sale rather than as business property or asset.

The Purchase Book is a sub-book that is used to record all credit-purchase transactions. The asset's acquisitions are never recorded in the purchase book.

Purchase Book Format:

3. The Sales Book

The sales book, often known as the sales day book, is written in the same manner as the purchases book. It is solely used to document the sale of items on credit. As a result, before a sale is recorded in this book, the following two conditions must be considered:

· The transaction is a credit-only sale with no immediate cash payment.

· The sale is of the items with which the business firm is involved.

The Sales Book keeps track of all credit sales transactions. The sale of assets cannot be recorded in the sales book. The format for a sales book is shown below:

4. The Purchase Return Book

The purchased returns book (also known as the Bought Returns Book or Returns Outwards Book) keeps track of the products returned to suppliers by the firm.

The buy returns book features the same columns as the purchases book: date, particulars, debit note number (as opposed to invoice number in the purchases book), ledger folio, and amount. The purchased returns book (also known as the Bought Returns Book or Returns Outwards Book) keeps track of the products returned to suppliers by the firm.

The buy returns book features the same columns as the purchases book: date, particulars, debit note number (as opposed to invoice number in the purchases book), ledger folio, and amount.

What is a debit note?

What is a credit note?

5. The Sales Return Book

The sales returns book (or Returns Inward Book) can be used to record the products returned to the firm by consumers because they were not as ordered or were defective, damaged, or otherwise unsatisfactory.

The columns in this book are similar to those in the Sales Day Book, except that instead of Invoice No., the Credit Note Number is noted.

The trader issues a credit note in duplicate to signify that the sums mentioned on the note have been credited to the customer's account. These credit notes are used to make the entries in the sales returns book.

The sales return book keeps track of all transactions including inbound returns. It is sometimes referred to as a return inward book.

When a consumer returns products, a credit note is provided to the customer and documented in the Sales Return Book.

Format of Sales Return Book:

6. The Bills Receivable Book

This book can be used to record the information of invoices receivable on which the company will receive payments from third parties in the future. The acceptor's (debtor's) name, terms, due date, amount, and other data must all be recorded in this book.

The Bills Receivable Book tracks all transactions involving bills drawn in the company's favor.

The sum of the bills receivable book is deposited to the Bills Receivable account's debit side. The Bills Receivable Book Format is as follows:

7. The Bills Payable Book

This is also an original entry book and is used to document the specifics of all the 'bills payable' acquired by the firm to pay the sums owed by it (the organization or the trader) to its creditors at a later period.The records to be made in this book concern the drawer's name, the payee's name, the term, the due date, and other details. After then, the acknowledgment is returned to the drawer.

The Bills Payable Book keeps track of all transactions of bills drawn on the firm and payable by the business. The format of the Bills Payable Books is as follows:

FAQs

What Do You Mean By Books of Original Entry?

Books of original entry are accounting books or journals in which all transactions are first or initially documented.

The commercial transactions are solved in great detail, and their descriptions are the first to be documented in this original entry book.

The accounting journals in which business transactions are normally documented are referred to as books of initial entry. The data in these books is eventually aggregated and entered into a general ledger, from which financial statements are generated.

What is the Full Form of L.F?

The letter LF stands for ledger folio number. Folios are traditionally used for reference or to split books into sections. The number of pages of a book or paper may also be referred to by this phrase.

In accounting, a folio serves a similar purpose. It is used to signify entries in financial diaries and ledgers. An LF represents the page number of an entry in your company's ledger.

Summing Up

When there are few business transactions, there is just one journal in which all business transactions are documented. However, if the firm is huge and there are a high number of transactions, you will want subsidy books.

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