Subsidiary Books
MEANING
Subsidiary Books are special journals maintained to record specific types
of transactions that occur frequently in a business. Instead of recording all
transactions in a single Journal (Journal Proper), we use different
subsidiary books to save time and organize records systemically.
ADVANTAGES
1. Division of Work – Different persons can maintain different books.
2. Time-saving – Transactions are recorded quickly.
3. Specialization – Allows trained staff to handle specific books.
4. Easy to Record and Locate – Similar entries are grouped together.
5. Efficient Internal Check – Helps detect fraud or errors easily.
NAME OF BOOK PURPOSE
Cash Book Records all cash & bank transactions
Purchases Book Records all credit purchases of goods
Sales Book Records all credit sales of goods
Purchases Return Book Records return of goods to suppliers
(Return Outward Book)
Sales Return Book Records return of goods from suppliers
(Return Inward Book)
Bill Payable Records all bills received (bills drawn)
Bills Receivable Records all bills accepted (bills payable)
Journal Proper Records all other transactions not recorded
elsewhere
I. Cash Book
Purpose:
To record all cash and bank transactions.
Types & Format:
A. Single Column Cash Book (Only cash transactions)
DATE PARTICULARS L.F. CASH DATE PARTICULARS L.F. CASH
B. Double Column Cash Book (Cash + Bank)
DATE PARTICULARS L.F. BANK CASH DATE PARTICULARS L.F. BANK CASH
C. Triple Column Cash Book (Cash + Bank + Discount)
MEANING
Subsidiary Books are special journals maintained to record specific types
of transactions that occur frequently in a business. Instead of recording all
transactions in a single Journal (Journal Proper), we use different
subsidiary books to save time and organize records systemically.
ADVANTAGES
1. Division of Work – Different persons can maintain different books.
2. Time-saving – Transactions are recorded quickly.
3. Specialization – Allows trained staff to handle specific books.
4. Easy to Record and Locate – Similar entries are grouped together.
5. Efficient Internal Check – Helps detect fraud or errors easily.
NAME OF BOOK PURPOSE
Cash Book Records all cash & bank transactions
Purchases Book Records all credit purchases of goods
Sales Book Records all credit sales of goods
Purchases Return Book Records return of goods to suppliers
(Return Outward Book)
Sales Return Book Records return of goods from suppliers
(Return Inward Book)
Bill Payable Records all bills received (bills drawn)
Bills Receivable Records all bills accepted (bills payable)
Journal Proper Records all other transactions not recorded
elsewhere
I. Cash Book
Purpose:
To record all cash and bank transactions.
Types & Format:
A. Single Column Cash Book (Only cash transactions)
DATE PARTICULARS L.F. CASH DATE PARTICULARS L.F. CASH
B. Double Column Cash Book (Cash + Bank)
DATE PARTICULARS L.F. BANK CASH DATE PARTICULARS L.F. BANK CASH
C. Triple Column Cash Book (Cash + Bank + Discount)
