Subsidiary Books, Kinds of Subsidiary Books

Subsidiary Books

                  In this Book maintained separate books to record each kind of transaction.  As all the similar kind of transactions is recorded in separate book, it becomes easier post all such transactions in ledger at a time. It is overcome such problems the posting of journal entries in ledger can be avoided at every time a transaction occurs. This, the different Transactions are classified into various groups and relevant transactions are recorded in a separate journal. Such journals are called “Subsidiary Journals” or “Books of original entry” or “Subsidiary Books”.

Kinds of Subsidiary Books:

1)    Purchases Book:

       

               Only the credit purchases of goods are recorded in this book cash purchases and purchase of asset are not recorded in this book. It is also known as “Invoice Book” it is posted to the debit of Purchase account.

2)    Sales Book:

                 The credit sales of goods are recorded in the sales book. Cash sales and sales of assets are not recorded in this Book. It is also know as “Sales day Book”.

3)    Purchases returns Book:

               This book keeps a record of the returns outwards: that is, return of goods to the supplier. When goods are purchases on credit basis and returned to the supplier for some reasons the transaction related to the return outwards are recorded in this book “Return outward book”.

4)    Sales Returns Book:

                 This book is kept for recording returns inwards. When goods are sold on credit basis and returned by the customer due to some reasons, Transactions related to returns inwards are recorded in the sales returns book “Returns inward Book”.

5)    Cash Book:

                 The cash book in maintained to record all cash transactions. All the cash receipts and payments are recorded in the book.

6)    Bills Receivable Book:

               The bills on which the amount is yet to be received and promissory notes drawn by the seller or creditors are recorded in the bills receivable book.

7)    Bills payable Book:

              All bills and promissory notes accepted by the buyer or debtor are recorded in the bills payable book.

8)    Journal Proper:

                This book is used for recording only those transactions which can not be recorded in any of the above mentioned subsidiary books.