Special Purpose Books
Part 1
Goods · Stock & Inventory · Raw Material · WIP · Finished Goods · Purchase Book · Sales Book
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📝 Handwritten Class Note
CA Devesh Thakur’s handwritten note for Day 22 — save it for quick revision!
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Special Purpose Books — Part 1 📚
Accounting mein kuch transactions itni frequently hoti hain ki unke liye special dedicated books banaye jaate hain — inhe Subsidiary Books ya Special Purpose Books kehte hain. Aaj Day 22 mein hum pehle kuch important Accounting Terms samjhenge — Goods, Stock, Inventory ke types — aur phir dekhenge ki Purchase Book aur Sales Book kya hote hain aur kya record karte hain.
🛒 GOODS — Kya Hota Hai?
माल / वस्तुएँ — “Bechne ke liye Maal”
Items that a business buys for resale or manufactures for sale
📦 Purchases (खरीद)
Goods kharidna — for resale ya manufacturing ke liye. Cash ya credit mein. → Purchase Book (credit only) ya Cash Book (cash).
🏷️ Sales (बिक्री)
Goods bechna — customers ko. Cash ya credit mein. → Sales Book (credit only) ya Cash Book (cash).
📦 STOCK / INVENTORY — 3 Types
STOCK = INVENTORY
“Business ke paas bacha hua maal” — unsold goods at any point
🪨 Raw Material
Kachcha maal — product banane ke liye. eg. Steel for car factory, Cotton for textile mill.
⚙️ Work-in-Progress (WIP)
Adhura bana hua maal — manufacturing process mein hai, abhi ready nahi. eg. Half-assembled car.
✅ Finished Goods
Taiyaar maal — ready to sell. eg. Finished cars at showroom, packaged goods in warehouse.
📋 Purchase Book vs Sales Book — Quick Compare
📥 Purchase Book
Purchase Journal — Credit Purchases ka Record
Records credit purchases of goods only (for resale / manufacturing).
What’s NOT included: Cash purchases (→ Cash Book) | Fixed assets (→ Journal Proper).
Month-end posting: Purchases A/c Dr. (total) | Each Creditor A/c Cr. (individually).
📍 Already covered in Day 21! — M/s Galaxy, Paper House, Modern Traders example.
📤 Sales Book
Sale Journal — Credit Sales ka Record
Records credit sales of goods only (goods sold to customers on credit).
What’s NOT included: Cash sales (→ Cash Book) | Fixed asset sales (→ Journal Proper).
Month-end posting: Each Debtor A/c Dr. (individually) | Sales A/c Cr. (total).
📍 Format same as Purchases Book — Date, Particulars, Inv. No., L.F., Details, Amount.
📖 Key Accounting Terms — Quick Reference
| Term | Hindi | Meaning | Book Used |
|---|---|---|---|
| Goods | माल / वस्तुएँ | Items bought for resale or manufacturing | Purchase / Sales Book |
| Stock / Inventory | स्टॉक / भंडार | Business ke paas bacha hua maal (unsold) | Stock Register |
| Raw Material | कच्चा माल | Product banane ka kachcha maal — input material | Purchase Book / Journal |
| Work-in-Progress | अधूरा माल | Adhura bana hua maal — in manufacturing process | Manufacturing A/c |
| Finished Goods | तैयार माल | Ready to sell maal — manufacturing complete | Sales Book / Journal |
| Purchase | खरीद | Buying goods for resale / manufacturing | Purchase Book (credit) |
| Sales | बिक्री | Selling goods to customers | Sales Book (credit) |
| Trade Discount | व्यापारिक छूट | Discount by supplier — NOT recorded in books | Net amount only |
📚 All Special Purpose Books — Overview
📥 Purchase Book
Credit purchases of goods only
📤 Sales Book
Credit sales of goods only
↩️ Purchase Return Book
Goods returned to suppliers (credit)
↪️ Sales Return Book
Goods returned by customers (credit)
💰 Cash Book
All cash & bank transactions
📓 Journal Proper
All transactions not covered by above books
Common Confusions — Special Purpose Books
1. Cash purchases in Purchase Book: Cash purchases → Cash Book only. Purchase Book = Credit purchases only.
2. Fixed assets in Purchase Book: Computer, machinery etc. → Journal Proper. Not Purchase Book (they’re not trading goods).
3. WIP = Finished Goods: WIP is still in process — Finished Goods are ready to sell. Different stages!
4. Stock = Goods purchased: Stock = unsold goods at any time. It includes Raw Material, WIP and Finished Goods all.
Connection with Previous Days
Day 21 (Purchases Book): Aaj Purchase Book ka concept revisit kiya — it records credit purchases of goods (Raw Material / Finished Goods for resale).
Day 19-20 (Cash Book): Cash purchases aur cash sales → Cash Book mein jaate hain, not Purchase/Sales Book.
Coming up: Day 23 onwards — Sales Book, Purchase Return Book, Sales Return Book ke practicals!