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4. Sales Return Book
It is a book used for recording goods returned by the buyer. It is also known as returns inward book. Goods sold may be return by customer for various reasons such as goods sent of wrong description or inferior quality or damaged. While keeping records in sales return books sellers prepares a credit note. It is prepared and sent to buyer of goods to inform about the adjustment of goods to inform about the adjustment of the amount of goods.
Specimen of Sales Return Book
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Credit Note
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Amount
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5. Cash Books
In business firms there will be many transactions relating to cash. To record cash transaction, separate book is kept which is called Cashbook. The function of cashbook is to keep records of all cash transactions. All cash transactions are directly recorded in cashbook without passing through other subsidiary books. Cashbook takes the place of cash account that is it is not necessary to open separate cash account in the ledger after keeping record in the cashbook.
The cashbook is closed and balanced in the same way as cash account in ledger. Cash book always-present debit balance because more cash can't be paid than business have. After closing the cashbook, the balance must again be shown on the debit side for the next month.
There are three types of cashbooks. They are-
Simple Cash Book
Double Column Cash Book
Triple Column Cash Book
I. Simple Cash Book:: Simple cash book is prepared like cash account in ledger. There are eight columns. First four columns are for debit side and second four columns are for credit side. All the cash received are entered in amount column on debit side and all cash paid appear on credit side in amount column. Cash book is closed and balanced at the end of the month.
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Amount
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