Answer / rinji sherpa

subsidiary books are the the various books of original entry
maintained under the modern system of accounting for
recording first the various business transactions,as and
when they take place.

Answer / suhas argade

1) Cash Book : To record all transactions in cash or by
cheques. Cash Book may be also of two columns.
2) Petty Cash Book: To record all cash transactions of
peety expenses.
3) Purchase Day Book: To record all transactions of goods
purchased on credit.
4) Sales Day Book : To record all transactions of credit
sales of goods.
5) Purchase Return Book: To record all transactions
relating to return of goods to suppliers.
6) Sales return Book: To record all transactions relating
to return of goods by the customers.
7) Bill Receivable Book: To record all transactions
relating to Bill Receivables.
8)Bill Payable Book: All transactions relaating to
acceptande of bills are recorded in this book.
9) Journal Proper: In Journal proper are recorded all
transactions other than those recorded above. In regard to
entering the transation in thge above books. it necessary
to note the following

Answer / taha kazi

Subsidiary Books are nothing but sub-division of journal.Sub-divided books on the basis of nature of transaction like sales,purchases,small cash expenses,etc. are called subsidiary books.

Answer / gotore elias

these are books of original entry.they are the second step
of recording transactions after the source documents.these
include purchases day book,sales day book,cashbook,general
journal,purchases returns journal and sales returns journal

Answer / umesh

In very simple sence, Due to no of transactions we cant
keep all the entries in the Journal. so it has been
sudevided in various journals these subjournals are
called "Subsidiary Books"

Answer / hanief abdullah

subsidiary books are nothing but credit aspects of credit transactions which includes all the details of transactions such as credit sales, credit purchases,bills recievable and payable and the main concept in this only trade debtors and creditors will include not sundry creditors and debtors in this ledger.... so it can be includes some other books like SDB, SRB etc......

Answer / usman

subsidiary books are books of original entry which are
recorded in chronological order.

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Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?

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