Subsidiary Books

In this post, we will learn about the Subsidiary Books.

Subsidiary Books
Subsidiary Books
Industrial Relations and Labour Laws PDF Download LinkCLICK HERE
Social Security in India PDF Download LinkCLICK HERE
General Accounting Principle PDF download linkCLICK HERE
Indian Freedom Struggle PDF download LinkCLICK HERE
Economics PDF Download LinkCLICK HERE
Insurance PDF Download LinkCLICK HERE
Globalisation & Development NotesCLICK HERE

cropped-cropped-logo-round.png

Nishant eAcademy
YouTube Channel

Subsidiary Books

Subsidiary Books are books that record transactions which are similar in nature in an orderly manner. They are also known as special journals or daybooks. In big organizations, it is not easy to record all the transactions in one journal and post them into various accounts. So, for the easy and accurate recording of all the transactions, the journal is subdivided into many subsidiary books. For every type of transaction, there is a separate book.

Types of Subsidiary Books

There are eight types of Subsidiary Books:

  1. Cash Book
  2. Purchase Book
  3. Sales Book
  4. Purchase Return Book
  5. Sales Return Book
  6. Bills Receivable Book
  7. Bills Payable Book
  8. Journal Proper

1. Cash Book

The first and most important subsidiary book is the cash book. It records all the transactions related to cash and bank receipts and payments.

Since, The data recorded in Cash Book for the first time from the source documents and hence, it is also called a book of Original entry or Prime entry.

it is of 3 types –

  1. Single Column Cash Book
  2. Double Column Cash Book
  3. Triple Column Cash Book

2. Purchase Book

Purchase book is a book of original entries where all credit purchases made by a business are recorded. It contains details of purchases such as the date of purchase, name of the supplier, invoice number, description of goods, quantity, rate, amount, and the amount of tax paid. The information recorded in the purchase book is used to prepare the purchase ledger and ultimately the financial statements of the business. The purchase book is an important source document for the accounts payable department, which uses it to reconcile supplier invoices and make payments.

3. Sales Book

A sales book is a record of all sales made by a business entity. It is a journal in which all credit sales are recorded. Sales books are typically used by businesses that sell goods or services on credit, rather than for cash. The sales book records the date of the sale, the name and address of the customer, the amount of the sale, and the terms of payment. This information is then used to prepare invoices and to track accounts receivable. The sales book is an important record for a business, as it provides an accurate record of all credit sales, which can be used for accounting, tax, and other purposes.

4. Purchase Return Book

The purchase return book, also known as the return outward book, is used to record transaction of all the returns made to the supplier. A debit note is issued against every return and is recorded in the purchase return book.

5. Sales Return Book

The sales return book records all the transactions related to inward returns. It is also known as a return inward book. When the customer returns goods, a credit note is issued to the customer for every return, and it is recorded in the sales return book.

6. Bills Receivable Book

A Bills Receivable Book is a subsidiary book used by businesses to record all the bills they receive from their customers or debtors. The book contains details of the bills such as the name of the debtor, the amount of the bill, the date it was received, and the due date for payment. The book helps the business keep track of its outstanding bills receivable and also serves as a proof of the debt owed by the debtor. Once the bills are paid, they are removed from the book and recorded in the Cash Book. The Bills Receivable Book is an important accounting record that helps in the efficient management of a business’s accounts receivable.

7. Bills Payable Book

A Bills Payable Book is a record book used by a business to record all bills received from its creditors. This book is used to record bills payable, including the date of the bill, the name of the creditor, the amount due, and the due date. The book is typically organized in chronological order, with the oldest bills at the top and the newest at the bottom. This helps the business to keep track of all its outstanding bills and to make sure that they are paid on time.

7. Journal Proper

There are certain transactions that cannot be recorded in any of the above mentioned books; these transactions are termed as miscellaneous transactions. So, the journal proper is used to record all the miscellaneous transactions. It includes transactions such as credit purchase and sale of assets, depreciation, etc.

Have You Downloaded Our App?

Best Courses & Test-series at Affordable Prices

Nishant eAcademy App

  • Topic-wise Recorded Video-Classes
  • Topic-wise Practice Test
  • Full-Length Mock-Test
  • Doubt Batch

FAQs on Subsidiary Books

What is Subsidiary Books?

Subsidiary Books are books that record transactions which are similar in nature in an orderly manner. They are also known as special journals or daybooks. In big organizations, it is not easy to record all the transactions in one journal and post them into various accounts. So, for the easy and accurate recording of all the transactions, the journal is subdivided into many subsidiary books. For every type of transaction, there is a separate book.

How many types of Subsidiary Books?

There are eight types of Subsidiary Books:

1. Cash Book
2. Purchase Book
3. Sales Book
4. Purchase Return Book
5. Sales Return Book
6. Bills Receivable Book
7. Bills Payable Book
8. Journal Proper

Leave a Comment

error: Content is protected !!
Index