Free Download of Class 11 Accountancy Chapter 8 Available on Vedantu
FAQs on Special Purpose Books II: TS Grewal Class 11 Chapter 8 Solutions
1. What are the most widely used subsidiary or special books?
The most widely used subsidiary books are:-
Cash Book: It keeps a daily account of incoming and outgoing cash.
Purchase Book: It keeps a record of purchases made on credit.
Purchase Return Book: It keeps an account of purchases or a part of purchase returned due to any reason whatsoever. It is also known as Return Outwards Book.
Sales Book: It keeps an account of stock sold on credit.
Sales Return Book: It deals with a consignment or a part of the consignment that has been returned by the buyer due to it being faulty or whatsoever reason. It is also known as Return Inwards Book.
2. How is a Purchase Book different from a Purchase Account?
A purchase book is a part of the journal record whereas a purchase account is a part of the ledger. Therefore, a purchase book will contain journal entries and a purchase account will hold debit credit columns.
A purchase book records only credit purchases whereas a purchase account records both cash and credit purchases.
Entries in the purchase book are transferred to the purchase account ledger and entries from the ledger are transferred to the trading account of a company.
3. What is a debit note?
A debit note or a debit memo is a document used by the seller to inform the buyer of his obligations. It is used as evidence or proof to prevent the buyer from refusing to pay the money for his purchases. For example, Mr. A went to Mr. B’s shop to buy a box of chocolates but realized that he had forgotten his wallet at home. Mr. A requests Mr. B to allow him to pay later. Mr. A will then make a debit note, affix his signatures and hand it over to Mr. B.
4. What is a credit note?
Quite opposite of debit note, here the buyer or purchaser uses the document to remind the seller of his obligations. It is used as a document of proof or evidence to prevent the seller from refusing to pay back the buyer’s money. For example, Mr. X sells cans of paints, Mr. Y a contractor is his regular customer. On one odd occasion, Mr. Y finds that two of the cans he purchased are dry. He returns them to Mr. X, and then Mr. X hands him a credit note. Now, Mr. Y can claim the money for 2 cans back or any product equivalent to the amount mentioned in the credit note.
5. How can Vedantu help me in understanding all these subsidiary books?
We can understand that it can be daunting to understand so many journal entries and other subsidiary books, especially when the subject is totally new to you. So to help you out we have a pool of experienced mentors who can not only make all these concepts easy but also fun to learn. You can hear them live by attending their masterclasses or watching the recorded sessions free of cost. You can also ask your doubts without hesitation, the mentors will be more than happy to assist you at all times. Many facilities including the study material are available for free for the students to access and download.
