Why and in which type of subsidary books we need to brought down balance?
Dear Student,
Balances are brought down in the following subsidiary books:
a) Cash Book
b) Bills Receivables book
c) Bills Payables book
These books consider the real and personal accounts i.e. Cash, Bank, Bills Receivables & Payables. These accounts are not closed & not moved to Profit and Loss Accounts accordingly the final balance is carried forward or brought down to next accounting period. However, Purchases Books & Sales books on the other hand are related to nominal accounts & their closing balances at the end of year would be closed by transfer to Profit and Loss Account.
Regards,
Balances are brought down in the following subsidiary books:
a) Cash Book
b) Bills Receivables book
c) Bills Payables book
These books consider the real and personal accounts i.e. Cash, Bank, Bills Receivables & Payables. These accounts are not closed & not moved to Profit and Loss Accounts accordingly the final balance is carried forward or brought down to next accounting period. However, Purchases Books & Sales books on the other hand are related to nominal accounts & their closing balances at the end of year would be closed by transfer to Profit and Loss Account.
Regards,