e Book and PURCHASE Return BookFacebookTwitterGoogle+WhatsAppA Subsidiary Book or a Day Book is a book of Original Entry. Subsidiary Books contains the records of similar Transactions. An organization MAINTAINS six kinds of Subsidiary books. They are Cash Book, Purchase Book, Purchase Return Book, Sales Book, Sales Return Book, and Journal Proper.Organizations that do not maintain the Subsidiary Books maintain Journal for all the transactions. A Journal holds records of all entries irrespective of their nature. Thus, Journal does not bifurcate the entries on the basis of their nature.Purchase BookPurchase Book is a Subsidiary Book. The Purchase Book or Purchase Day Book contains the record of all credit-purchase. Cash Book accommodates the records of all goods-purchase.A Purchase Book does not hold the record of Purchases of assets. The Journal Proper contains those records. The entries are recorded in the Purchase Book from SOURCE Documents. Invoices or bills received from the suppliers of goods serve as the Source Documents.We make the entries in the Purchase Book with the net amount of the invoice. Which is why a Purchase Book does not contain Trade Discount and other details which are there on the invoice.Every month the total of the Purchase Book is posted on the Debit side of the Purchases A/c. Purchases A/c is a ledger A/c. However, the individual accounts of the suppliers may be posted daily. Also, where the volume of transactions is too large, the entries in the ledger can be posted weekly or fortnightly. Given below is the Performa of the Purchase Book:Purchase BookDateInvoice No.Name of the SupplierL.F. Amount (₹)Purchase Return BookWhen the goods purchased on credit are returned to the supplier, these are recorded in the Purchase Return Book. Sometimes, goods purchased can be defective or of low quality, ETC. and hence, need to be returned. A separate book is maintained for the purchase return and these are not deducted from the purchases in the Purchase Book. Also, Purchase Return is recorded at the net amount on the invoice.A Debit Note is prepared for every return of goods. It is prepared in duplicate. The original one is sent to the supplier while the duplicate copy is kept for our own records. The Debit Note contains the name of the supplier, details of goods returned and the reason thereof. Each Debit Note is dated and serially numbered.The supplier may also prepare a Credit Note. It is prepared when goods are received from a customer and is therefore sent to him. Given below is the Performa of the Purchase Return BookPurchase Return BookDateDebit Note No.Name of the SupplierL.F. Amount (₹)Solved Example For YouQ: Record the following transactions in the books of M/s. Mac and Co. and also show the ledger accounts.Date                                                                  Details1 AugPurchased from ABC Ltd. (Invoice No. 524): 2000 BALLS @ ₹ 5 per piece.15 AugPurchased from XYZ Ltd. (Invoice No. 611): 100 bats @ ₹ 250 per piece. Trade discount 20%29 AugPurchased from Con Ltd. (Invoice No. 444): 200 skates for ₹100000. Trade discount 10%29 AugPurchased from ABC Ltd. (Invoice No. 741): 200 Chess for ₹2000. Trade discount 15%30 AugPurchased from Con Ltd. (Invoice No. 521): 100 skates for ₹40000. Trade discount 8%Ans:In the Books of M/s. Mac and Co.Purchase BookDateInvoice No.Name of the SupplierL.F. Amount (₹) 1 Aug 524 ABC Ltd.100002000 [email protected] ₹ 5 per piece.15 Aug611XYZ Ltd.20000100 [email protected] ₹ 250 per piece.        = 25000Less: 20% T.D.                          =   500029 Aug444Con Ltd.90000200 skates @ ₹ 500 per piece    = 100000Less: 10% T.D.                          =   1000029 Aug741ABC Ltd.1700200 Chess @ ₹ 100 per piece     =  2000Less: 15% T.D.                           = 300 30 Aug521Con Ltd.36800100 skates @ ₹ 400 per piece    = 40000Less: 8% T.D.                            =   320031 Aug Total167500