LIVE PROJECTJ

ON

PREPARATION OF SUBSIDIARY BOOK(EXCLUDING

CASH BOOK)

OF A TRADING COMPANY FOR FOUR DAYS

AT
SANTRAM TRADERDS
SUBMITTED TO: IABMI, AAU, Anand.

UNDER THE GUIDENCE OF: MR. AJIT SOLANKI

Submitted By:
SHRIKANT
VAISHNAVA
• THE MAIN OBJECTIVE OF LIVE PROJECT IS TO
UNDERSTAND HOW SOLUTIONS MADE FROM
PROBLEMS.

• THE LIVE PROJECT HELPS IN MANAGING ACTUAL

PROBLEMS.

• LIVE PROJECT IS TO UNDERSTAND ACTUAL RECORD

KEEPING SYSTEM.

• TO KNOW ABOUT ACCOUNTING PROCEDURE OF

TRADER.

• TO INCREASE OUR COMMUNICATION SKILL AND

CONVINCING POWER DURING MEET DIFFERENT
TYPES OF TRADERS.
• TO GET THE PRACTICAL KNOWLEDGE WITH
APPLYING THEORETICAL KNOWLEDGE
 Company Profile

• Santram traders entered in trading business in

the year 1983, located at opp. Chokshi estate
Sardar ganj, Anand.
• They are started trading Amul Dairy products.
• Mr. Jayesh R. Shah and Yogesh R. Shah is
owner of the firm.
• They purchase dairy products from Gujarat
Co-Operative Milk-Marketing Federation,
Anand and supply those products to all Amul
Parlour, shops and restaurant located at Anand
and V.V.nagar.
Subsidiary books

• In business most of the transaction generally

related to receipt and payment of cash, sale of
goods and there purchase (Cash or Credit).

• It is convenient to keep a separate register for

each such class of transaction one for receipt and
for payments of cash, one for purchase of goods
and one for sale of goods (Cash or Credit). A
register of this type is called subsidiary book
Subsidiary books used in
business
• Cash book to record receipt and payment of
cash, including receipt into and payment out of
the bank.
• Purchase book to record credit purchase of
goods in or of the materials and stores required
in the firm.
• Purchase return book to record the returns of
goods and material previously purchased.
• Sales book to record the credit sales of the
goods dealt in by the firm.
• Sales return book to record the returned made
by the customers.
 Objectives of
Subsidiary books
• Understand the technique of recording in
Purchase book, sales book and purchase and
sales return book.
• To keep separate accounts for each such
classes of transaction one for receipt and for
payments of cash, one for purchase of goods
and one for sale of goods.
• Recording of bills payable and bills
receivable.
• See the technique of posting from subsidiary
books to ledger.
 Advantages of
subsidiary books
• Division of work: - Since in the place of
one journal there will be so many
subsidiary books, the accounting work may
be divided amongst a number of clerks.
• Specialisation and efficiency: - When the
same work is allotted to a particular person
over a period of time, he acquires full
knowledge of it and becomes efficient in
handling it. Thus the accounting work will
be done efficiently.
 Cont….
• Saving of the time: - Various accounting
process can be undertaken simultaneously
because of the use of a number of books.
This will lead to the work being
completed quickly.
• Availability of information: - Since a
separate register or books is kept for each
classes of transaction, the information
relating to each transaction will be
available at one place.
 PURCHASE BOOK
Particular
Date Inward no L.f. Amount(Rs.)
(Name of the suppliers)

-----------------
-------
-----------------
Total credit purchase -------

•Only credit transactions of goods purchase are recorded.

•Transactions are recorded for net amount
eg. Amount after deducting the trade discount.
 Transactions are NOT
recorded in the purchase
book
• Transactions of cash purchase of goods are not
recorded in the purchase books. These
transactions are recorded in the cash book.
• If there is only an order for the supply of goods
then it not recorded non economic.
• Purchase goods for private use is not recorded
because it a drawings.
• Goods received from a supplier on sale or
return basis.
• When assets are purchase on credit or cash
basis.
When transactions are partly cash
and partly credit purchase

• First assume that whole transaction is for credit

purchase and record in the purchase book
• Then an entry for part payment may be made in the
cash book.
• If trade discount is to be allowed then trade discount
is deduct from main transaction then post it in
purchase book.
• If condition for cash discount is mentioned then
cash discount is deducted form cash part only.
 Sales book

Particular outward
Date L.f. Amount(Rs.)
(Name of the customers) no.

------------------------

------------------------

Total credit sales

•Only credit transactions of goods sold are recorded

•Transactions are recorded for net amount
eg. Amount after deducting the trade discount.
Transactions are NOT recorded in
the sales book: -
• Transactions of cash sales of goods are not
recorded in the sales books. These transactions
are recorded in the cash book
• If there is only an order receives for the supply
of goods then it not recorded non eco.
• goods for private use is not recorded because it
a drawings
• Goods sent for from a supplier to sold on sale
or return basis
• When assets are sold on credit or cash basis
When transactions are partly cash
and partly credit sales
• First assume that whole transaction is
for credit sales and record in the sales
book
• Then an entry for cash part received
may be made in the cash book.
• If trade discount is to be allowed then
trade discount is deduct from main
transaction then post it in sales book.
• If condition for cash discount is
mentioned then cash discount is
deducted form cash part only
 Purchase return book
Particular Debit note
Date L.f. Amount(Rs.)
(Name of the customers) no.

------------------------

Total credit sales ------------------------

•Only credit transactions of goods purchase return are recorded

•Transactions are recorded for net amount eg. Amount after
deducting the trade discount.
Transactions are NOT recorded in
the purchase return book

• When goods purchased for cash are

returned.
• When goods received on consignment
basis are returned to the consignor.
• when goods received on sales or return
basis are returned.
• When an assets other than goods is
returned.
• When goods purchased for personal use
of the proprietor are returned.
 Sales return book

Particular Credit
Date L.f. Amount(Rs.)
(Name of the customers) note no.

-----------------------
Total sales return
-----------------------

•Only credit transactions of goods sales return are

recorded.
•Transactions are recorded for net amount eg. Amount
after deducting the trade discount.
Transactions are NOT recorded in the
sales return book
• When goods purchased for cash are
returned.
• When goods received on consignment basis
are returned to the consignor
• when goods received on sales or return
basis are returned
• When an assets other than goods is
returned.
• When goods purchased for personal use of
the proprietor are returned.
 TRANSACTIONS OF
SANTRAM TRADERS
22.11.08
• Purchase Amul Butter (150×100gm) & (30×500gm) 5 cases
of each worth Rs.21635.75 from GCMMF Ltd.
• Purchase Amul Shrikhand (12×500gm) 5 cases of Rajbhog
and 3 cases of Pineapple worth Rs.4178.62 from GCMMF
Ltd.
• Purchase Amul Ghee (60×200ml) & (10×1lit) 10 cases of
each worth Rs.36806.5 from GCMMF Ltd.
• Sale Vanilla 2 lit 2 boxes to Divine Dayning hall worth
Rs.175.00.
• Sale Shakti Keshar (24×500gm) 1 box to Chandni Parlour
worth Rs.2507.00.
• Sale Masti Dahi (24×200gm) 3 boxes & (12×400) 2 boxes to
Amul Parlour (dairy road) worth Rs.1106.00.

ALL TRANSACTIONS
 PURCHASE BOOK
Date Particular Inward no L.f. Amount(Rs.)
22.11.0 G.C.M.M.F.Ltd.
8 •Amul Butter. 859 21635.75
(150×100gm)-5 cases
(30×500gm)- 5 cases
•Amul Shrikhand -||- 4178.62
(12×500gm)
5-cases- Rajbhog.
5-cases- Pineapple.
•Amul Ghee -||- 36806.50
(60×200ml)-10 cases.
(10×1lit)-10 cases.

Total credit purchase 62620.87

 SALES BOOK

Date Particular outward no. L.f. Amount(Rs.)

22.11.08 • Vanilla 175.00
2 lit 2 boxes to Divine Dayning
hall.
• Shakti Keshar 2507.00
(24×500gm) 1 box to Chandni
Parlour.
• Masti Dahi 1106.00
(24×200gm) 3 boxes & (12×400)
2 boxes to Amul Parlour
(dairy road).

TOTAL CREDIT SALE 3788

 LEDGER
POSTING
Purchase Account

Date Particular Amt. Date Particular Amt.

22.11.08 To G.C.M.M.F.Ltd. 21635.7 Balance 62620.
A/C. 5 c/d 87
22.11.08 To G.C.M.M.F.Ltd. 4178.62
A/C.
22.11.08 To G.C.M.M.F.Ltd. 26806.5
A/C. 0
--------- Total 62620.8 62620.
Total
7 87
 Sales Account
Date Particular Amt. Date Particular Amt.
22.11.08 To Devine A/C 175.00

22.11.08 To Chandani parlour A/C 2507.00

Balance c/d 3788.00 22.11.08 To Amul Parlour Dairy
1106.00
Road A/C
------- Total 3788.00
Total 3788.00
--

G.C.M.M.F.Ltd. A/C
Date Particular Amt. Date Particular Amt.
22.11.08 To Purchase A/C. 21635.75
Balance c/d 62620.87 22.11.08 To Purchase A/C. 4178.62

22.11.08 To Purchase A/C. 26806.50

Total 62620.87 Total 62620.87

 Divine dining hall a/c
Date Particular Amt. Date Particular Amt.
22.11.08 To sales A/C 175.00 Balance c/d 175.00

Total 175.00 -------- Total 175.00

Chandani Parlour a/c
Date Particular Amt. Date Particular Amt.
22.11.08 To sales A/C 2507.00 Balance c/d 2507.00

Total 2507.00 -------- Total 2507.00

Amul Parlour (Dairy Road) A/C

Date Particular Amt. Date Particular Amt.

22.11.08 To sales A/C 1106.00 Balance c/d 1106.00

Total 1106.00 -------- Total 1106.00

 Trial Balance

Accounts Dr. Cr.

Purchase A/C 62620.87
G.C.M.M.F.Ltd. A/C 62620.87
Devine Hall A/C 175
Chandani Parlour A/C 2507
Sales A/C 3788.00
Amul Parlour
(Dairy Road) A/C 1106.00
TOTAL 66408.87 66408.87
 CONCLUSION
• Purchase book and sales book are maintain to keep record of
credit purchase and credit sales respectively.

• This subsidiary books give the name of the party as well as

the financial details for direct ledger posting.

• General entries required for other transaction whish are not

covered by subsidiary books.

• A Trial Balance is a summary of all the General Ledger

Balances outstanding as on a particular date.

• If the two sides do not match, it should be obvious that there

must be some error in recording the transactions somewhere.