• Ledger folio: it show the page no. of ledger book where this account is located. • Particulars: it records the name of suppliers of goods description of goods and quantity, rate, amount and trade discount. Cash discount is a reduction given in the amount of debt being paid. While preparing the books of account, purchase transaction is recorded only after deducting trade discount. It shows the name and address of buyer and seller, quality and quantity, rate per unit trade and cash discount, and means and modes of payment. Trade discount is a reduction made in the list price of goods purchase, given by the seller to the buyer. This discount is providing with a view of making bulky purchase of goods. In case of manufacturing concern, opening stock consists of raw materials work in progress and finished goods. 1. Opening stock. In case of a merchandising business, the opening stock consists of different types of finished goods.

The amount of the opening stock is obtained from trial balance. It includes opening stock, purchase and expenses relating to purchase and factory expenses in the debit side. It helps to provide information regarding closing stock, sales and cost of goods sold. They have to keep these inventories ready for quick access or to track the sales or income & expenses. • It is not suitable organizations as they have small volume of transactions. Accountants and auditors: Accountants perform a variety of services for organizations and individual clients, while auditors seek out errors and discrepancies in records. This well reputed Minnesota based organization specializes in providing consultancy services as well as executive search services to their client company. The section of 109 of the company act, 2063 specifies the legal obligation of a company to prepared and submit financial statements. The demand for telecommunication later on fell and during the time it was low, the company was paying for these leases for no reason. It is offered to the debtor by creditor to make the payment of debt before its stated time. This discount is given with a view of making early payment of debt.

This type of discount is allowed when the large quantity of goods are purchase. This cash discount is expenses to the debtor and income to the creditor. Since, it is a nominal account, all direct expenses are debited and direct incomes are credited. The most basic method would be to simply make a list of the sales income and a second list of the purchase expenses. Finally, in the screenshot to the right, you’ll see how simple it is (if you posted correctly) to determine how much sales tax is owed for each location. You will be able to see who the companies are and the commission structure of each. In which country are women more likely to get promotion to the boardroom in big companies? There are a lot of positive aspects of this city for business owners, like the fact that Texas does not impose a personal income tax, leaving you more money.

This is likely to be a long-term relationship and should be approached with more caution than dating. It shows the relationship between gross profit and sales which help to measure profitability position of the business. Similarly, sales and closing stock are included in the credit side. This used to record the credit purchase of goods only. The seller prepares the invoice and sends to buyer along with the goods sold. • Invoice No.: it records the invoice no. sent by the suppliers. • It avoids the necessity of journal entries. Each journal records transactions. Purchase book is also known as purchase journal or invoice book or bought book. Invoice is a business document prepared by the seller or suppliers disclosing the details of goods. The department keeps the track to manage all the employee details that include salary payment, bonus and leaves management. The details column is used to write the individual total of goods purchased.

• Date: it recorded the data of goods purchased. • It help in the internal check as the subsidiary book maintained by cleak is automatically checked by another clerk. • It is expensive as it requires number of clerks to maintain the different subsidiary books. The following are the importance types of subsidiary books. • It enables to make of word among accounting personnel by assigning with separate books. • It does not keep the records of transaction in a chronological order. In order to choose the best solution for your business it is advisable to weigh up all the pros and cons carefully. It is prepared to known financial result of a business operation during period of time. Every company should prepared trading account, profit and loss account, profit and loss appropriation account and balance sheet at the end of accounting period. The profit and loss account is prepared to ascertain earned or loss suffered during an accounting period of time where the balance sheet is prepared to depict the financial position on a particulars date.