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Subsidiary Books I Exercise Solutions | KalviGavani

Samacheer Kalvi 11th Accountancy Subsidiary Books I exercise solutions — purchases day book, sales day book, purchases returns book, sales returns book, posting to ledger, MCQs, worked examples.

Updated 15 June 202611 min read

How to Use This Page

Solve each Samacheer Kalvi exercise question on your own first, then compare your format and totals. Subsidiary Books I covers the four day books (purchases, sales, and their returns). Practise the formats until you can prepare any day book from raw transactions.

Key Concepts (Quick Recap)

What are Subsidiary Books?

Subsidiary books (also called books of prime entry or special journals) are specialised books where transactions of a similar nature are recorded before posting to the ledger.

The Four Day Books

BookRecordsPosted to
Purchases Day BookCredit purchases of goodsIndividual suppliers (Cr), Purchases A/c total (Dr)
Sales Day BookCredit sales of goodsIndividual customers (Dr), Sales A/c total (Cr)
Purchases Returns BookReturns of goods purchased on creditIndividual suppliers (Dr), Purchases Returns A/c total (Cr)
Sales Returns BookReturns of goods sold on creditIndividual customers (Cr), Sales Returns A/c total (Dr)

Important Rules

1. Only CREDIT transactions of goods go in day books. Cash transactions go in the Cash Book. 2. Only GOODS (trading items) are recorded in day books. Purchase/sale of assets goes in the Journal Proper. 3. Trade discount is deducted before recording. Only the NET amount is entered. 4. Cash discount is NOT recorded in day books — it is recorded in the Cash Book when payment is made/received. 5. Totals of day books are posted to the ledger at the end of the month.

Format of a Purchases Day Book

Date | Supplier Name | Invoice No. | L.F. | Details (₹) | Amount (₹) -----|-------------|------------|------|------------|---------- | | | | |

Posting from Day Books to Ledger

From Purchases Day Book:

  • Each supplier → Credit side of their personal account
  • Monthly total → Debit side of Purchases Account

From Sales Day Book:

  • Each customer → Debit side of their personal account
  • Monthly total → Credit side of Sales Account

From Purchases Returns Book:

  • Each supplier → Debit side of their personal account
  • Monthly total → Credit side of Purchases Returns Account

From Sales Returns Book:

  • Each customer → Credit side of their personal account
  • Monthly total → Debit side of Sales Returns Account

I. Choose the Best Answer (MCQs)

Q1. Credit purchases of goods are recorded in (a) Cash book (b) Purchases day book (c) Journal proper (d) Sales day book

Answer(b) Purchases day book — The purchases day book records only CREDIT purchases of goods. Cash purchases go in the cash book. Credit purchase of assets goes in the journal proper.

Q2. The total of the purchases day book is posted to the (a) Credit of Purchases A/c (b) Debit of Purchases A/c (c) Debit of Sales A/c (d) Credit of Cash A/c

Answer(b) Debit of Purchases A/c — The total of the purchases day book is posted to the debit side of the Purchases Account at the end of the month. Individual entries are posted to the credit side of each supplier's account.

Q3. Returns of goods purchased on credit are recorded in (a) Purchases day book (b) Sales returns book (c) Purchases returns book (d) Journal proper

Answer(c) Purchases returns book — The purchases returns book (also called returns outward book) records goods returned to suppliers that were originally purchased on credit.

Q4. Trade discount is (a) Recorded in the day book (b) Deducted before recording (c) Recorded in the cash book (d) Recorded in the journal proper

Answer(b) Deducted before recording — Trade discount is deducted from the list price, and only the NET amount is recorded in the subsidiary books. It is never separately recorded.

Q5. Credit purchase of furniture is recorded in (a) Purchases day book (b) Cash book (c) Journal proper (d) Sales day book

Answer(c) Journal proper — Credit purchase of an ASSET (furniture) is NOT recorded in the purchases day book. The purchases day book records only credit purchases of GOODS. Asset purchases go in the journal proper.

II. Fill in the Blanks

1. Credit purchases of goods are recorded in the purchases day book. 2. Credit sales of goods are recorded in the sales day book. 3. Goods returned to suppliers are recorded in the purchases returns book (returns outward book). 4. Goods returned by customers are recorded in the sales returns book (returns inward book). 5. Trade discount is deducted before recording in the books. 6. Cash discount is recorded in the cash book. 7. Credit purchase of machinery is recorded in the journal proper. 8. The total of the sales day book is posted to the credit side of the Sales Account. 9. The total of the purchases returns book is posted to the credit side of the Purchases Returns Account. 10. The total of the sales returns book is posted to the debit side of the Sales Returns Account.

III. True or False (with corrections for false statements)

Q1. Cash purchases are recorded in the purchases day book.
AnswerFalse — Correction: Cash purchases are recorded in the CASH BOOK, not the purchases day book. The purchases day book records only CREDIT purchases of goods.
Q2. Trade discount is recorded in the subsidiary books.
AnswerFalse — Correction: Trade discount is NOT recorded in the books. Only the net amount after deducting trade discount is recorded in the subsidiary books.
Q3. The total of the purchases day book is posted to the debit of Purchases Account.
AnswerTrue — The total of all credit purchases is debited to the Purchases Account at the end of the month. Individual amounts are credited to each supplier's account.
Q4. Purchases returns book is also called returns inward book.
AnswerFalse — Correction: Purchases returns book is called RETURNS OUTWARD book (goods going out, back to the supplier). Sales returns book is called RETURNS INWARD book (goods coming back from customers).
Q5. Credit purchase of a computer for office use is recorded in the purchases day book.
AnswerFalse — Correction: Credit purchase of a computer (an ASSET, not goods for resale) is recorded in the JOURNAL PROPER, not the purchases day book.

IV. Match the Following

Column AColumn BAnswer
1. Purchases day book(a) Returns inward(b) Credit purchases of goods
2. Sales day book(b) Credit purchases of goods(c) Credit sales of goods
3. Purchases returns book(c) Credit sales of goods(d) Returns outward
4. Sales returns book(d) Returns outward(a) Returns inward
5. Journal proper(e) Credit purchase of assets(e) Credit purchase of assets

V. Answer Briefly (2-mark questions)

Q1. What are subsidiary books? Name the four day books.
Answer

Subsidiary books are specialised journals for recording transactions of a similar nature before posting to the ledger. The four day books are: 1. Purchases Day Book (credit purchases of goods) 2. Sales Day Book (credit sales of goods) 3. Purchases Returns Book (returns outward) 4. Sales Returns Book (returns inward)

Q2. Distinguish between purchases day book and purchases returns book.
Answer

| Feature | Purchases Day Book | Purchases Returns Book | |---|---|---| | Records | Credit purchases of goods | Returns of goods to suppliers | | Nature | Outflow of money | Inflow (reduction in liability) | | Also called | Purchases journal | Returns outward book | | Total posted to | Debit of Purchases A/c | Credit of Purchases Returns A/c | | Individual entries | Credit of supplier's A/c | Debit of supplier's A/c |

Q3. How is trade discount treated in subsidiary books?
Answer

Trade discount is deducted from the list price BEFORE recording in the books. Only the NET amount is entered in the subsidiary books. Trade discount is never separately recorded. Example: List price ₹10,000, Trade discount 10% → Net amount = ₹10,000 − ₹1,000 = ₹9,000 recorded in the day book.

Q4. What transactions are NOT recorded in the day books?
Answer

1. Cash transactions (recorded in the Cash Book) 2. Credit purchase/sale of assets (recorded in the Journal Proper) 3. Opening, closing, adjustment entries (recorded in the Journal Proper) 4. Rectification entries (recorded in the Journal Proper) 5. Dishonour of bills (recorded in the Journal Proper)

VI. Answer in Detail (5-mark questions)

Q1. From the following transactions, prepare the Purchases Day Book and Sales Day Book:
Answer

2024 January 3: Purchased from Ramesh 100 units @ ₹20 each, Trade discount 5% January 7: Sold to Suresh 50 units @ ₹30 each January 12: Purchased from Kumar 200 units @ ₹10 each, Trade discount 10% January 18: Sold to Mohan 80 units @ ₹25 each, Trade discount 5% January 22: Purchased furniture on credit from Furniture Mart ₹15,000 January 28: Sold old machinery on credit to David ₹8,000

Purchases Day Book

Date | Supplier | Invoice | L.F. | Details (₹) | Amount (₹) -----------|----------------|---------|------|-------------|---------- Jan 3 | Ramesh | | | 2,000 − 5% | 1,900 Jan 12 | Kumar | | | 2,000 − 10% | 1,800 -----------|----------------|---------|------|-------------|---------- | Total | | | | 3,700
WorkingRamesh: 100 × ₹20 = ₹2,000 − 5% = ₹1,900; Kumar: 200 × ₹10 = ₹2,000 − 10% = ₹1,800

Note: Furniture purchase (₹15,000) is NOT recorded here — it goes in the Journal Proper.

Sales Day Book

Date | Customer | Invoice | L.F. | Details (₹) | Amount (₹) -----------|-----------|---------|------|-------------|---------- Jan 7 | Suresh | | | 50 × ₹30 | 1,500 Jan 18 | Mohan | | | 2,000 − 5% | 1,900 -----------|-----------|---------|------|-------------|---------- | Total | | | | 3,400
WorkingMohan: 80 × ₹25 = ₹2,000 − 5% = ₹1,900

Note: Old machinery sale (₹8,000) is NOT recorded here — it goes in the Journal Proper.

Q2. From the following transactions, prepare the Purchases Returns Book:
Answer

2024 March 5: Returned to Ramesh 20 units @ ₹20 each (from the purchase on Jan 3) March 10: Returned to Kumar 50 units @ ₹10 each (from the purchase on Jan 12) March 15: Returned damaged goods to Senthil ₹500

Purchases Returns Book

Date | Supplier | Debit Note | L.F. | Details (₹) | Amount (₹) -----------|------------|-----------|------|-------------|---------- Mar 5 | Ramesh | | | 20 × ₹20 | 400 Mar 10 | Kumar | | | 50 × ₹10 | 500 Mar 15 | Senthil | | | Damaged goods| 500 -----------|------------|-----------|------|-------------|---------- | Total | | | | 1,400

Posting: Each supplier's account → Debit side; Total → Credit of Purchases Returns A/c

Common Mistakes to Avoid

  • Recording cash transactions in day books: Cash purchases go in the CASH BOOK, not the purchases day book. Cash sales go in the CASH BOOK, not the sales day book.
  • Recording asset purchases in the purchases day book: Credit purchase of assets (furniture, machinery) goes in the JOURNAL PROPER, not the purchases day book. The day books record only goods for resale.
  • Not deducting trade discount: Trade discount must be deducted BEFORE recording. Only the NET amount goes in the day book.
  • Confusing returns inward and returns outward: Returns INWARD = goods returned BY customers (Sales Returns Book). Returns OUTWARD = goods returned TO suppliers (Purchases Returns Book).
  • Wrong posting of totals: Purchases Day Book total → Debit of Purchases A/c, Credit of individual suppliers. Sales Day Book total → Credit of Sales A/c, Debit of individual customers.
  • Recording cash discount in day books: Cash discount is recorded in the CASH BOOK when payment is made/received, NOT in the day books.

Exam Checklist

  • [ ] Can you list the four day books and state what each records?
  • [ ] Can you prepare a Purchases Day Book with trade discount?
  • [ ] Can you prepare a Sales Day Book with trade discount?
  • [ ] Can you prepare a Purchases Returns Book?
  • [ ] Can you prepare a Sales Returns Book?
  • [ ] Can you correctly post from day books to the ledger?
  • [ ] Can you distinguish between trade discount and cash discount?
  • [ ] Can you identify which transactions go in the day books vs the cash book vs the journal proper?
  • [ ] Can you handle credit purchase/sale of assets (not goods)?
  • [ ] Can you post the monthly total of each day book to the correct ledger account?

Frequently Asked Questions

Subsidiary books (books of prime entry) are specialised journals for recording similar types of transactions: Purchases Day Book (credit purchases of goods), Sales Day Book (credit sales of goods), Purchases Returns Book (returns of goods purchased), Sales Returns Book (returns of goods sold). They are maintained to divide work, save time, reduce errors, and facilitate easy posting to the ledger.
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Chapter Notes

Tamil Nadu Class 11 Accountancy: Subsidiary Books One

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