Definitions [9]
A cash book is a special account book where all business cash and bank transactions (money received and paid) are recorded each day.
A Purchase Book (also called Bought Day Book or Purchase Journal) is used to record only credit purchases of goods intended for resale or production.
A debit note is a brief statement prepared by the buyer when returning goods, showing the details and amount of goods returned, and letting the supplier know to reduce the buyer’s amount owed.
A credit note is a document given by a seller to a buyer when goods are returned, showing the amount to reduce or cancel what the buyer has to pay; it acts like a “refund slip” that adjusts the buyer’s account and proves the return happened.
A purchase return book is a special accounting book where a business records goods sent back to suppliers because they are the wrong quality, damaged, or not needed—only returns from credit purchases are included.
A sales book is a special accounting record used to write down all the credit sales of goods made by a business, while cash sales or sales of assets are recorded elsewhere.
The Sales Return Book is a special accounting book used to record goods that were sold to customers on credit but are returned to the business because they are not as ordered, damaged, or defective.
Journal Proper is a special accounting book where rare or miscellaneous transactions, not recorded in other subsidiary books, are entered.
Balancing a ledger account means adding up the debit and credit columns, finding the difference, and inserting this difference as 'Balance c/d' (carried down) on the side that totals less. This final balance is then brought forward for the next accounting period as 'Balance b/d' (brought down)
