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Subsidiary Books

The document discusses the 8 types of subsidiary books used in accounting: 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. It provides the format and purpose of each book. Maintaining subsidiary books saves time and labor, ensures division of work, and provides detailed information about specific transaction types.

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Lipika haldar
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492 views4 pages

Subsidiary Books

The document discusses the 8 types of subsidiary books used in accounting: 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. It provides the format and purpose of each book. Maintaining subsidiary books saves time and labor, ensures division of work, and provides detailed information about specific transaction types.

Uploaded by

Lipika haldar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SUBSIDIARY BOOKS

Meaning:
Journal is sib-divided into the following eight categories of books which are
called the subsidiary books:

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

1. Cash book: A cash book is a book where all the cash transactions of a
business are recorded. In other words, it is a book in which all cash
receipts and all cash payments are recorded. Non-cash transactions do
not find any place in the cash book. Cash book is both a journal and a
ledger. The format of a cash book is as follows:
In the books of ______
Cash Book
Dr. Cr.
Date Particulars L.F. Cash Bank Discount Dat Particulars L.F. Cash Bank Discount
e
(Cash (₹) (₹) (₹) (Cash (₹) (₹) (₹)
Receipts) Payments
)

2. Purchases book: A purchases book is a book where all the credit


purchases of goods are recorded. This book does not record the cash
purchases of goods and credit purchases of assets. The format of a
purchases book is as follows:
In the books of ______
Purchases Book
Date Particulars L.F. Invoice No. Details (₹) Amount (₹)
3. Sales book: A sales book is a book where all the credit sales of goods
are recorded. This book does not record the cash sales of goods and
credit sales of assets. The format of a sales book is as follows:
In the books of ______
Sales Book
Date Particulars L.F. Invoice No. Details (₹) Amount (₹)

4. Purchases return book: A purchases return book is a book where all


the goods returned by the business to its suppliers are recorded. The
format of a purchases return book is as follows:
In the books of ______
Purchases Return Book
Date Particulars L.F. Debit Note Details (₹) Amount (₹)
No.

5. Sales return book: A sales return book is a book where all the goods
returned by customers to the business are recorded. The format of a sales
return book is as follows:
In the books of ______
Sales Return Book
Date Particulars L.F. Credit Note Details (₹) Amount (₹)
No.

6. Bills receivable book: A bills receivable book is a book where all the
bills accepted by customers and given to the business are recorded. The
format of a bills receivable book is as follows:
In the books of ______
Bills Receivable Book
Sl. Date From Name of Date Term Date of Where L.F. Amoun Mode of Remarks
No. whom the of bill of the maturity/Du payabl t paymen
receive accepto bill e date e t
d r
(₹)
7. Bills payable book: A bills payable book is a book where all the bills
accepted by the business and given to creditors are recorded. The format
of a bills payable book is as follows:
In the books of ______
Bills Payable Book
Sl. Date To Name Name Date Term Date of Where L.F. Amoun Mode of Remarks
No. whom of the of the of bill of the maturity/Du payabl t paymen
given drawer paye bill e date e t
e
(₹)

8. Journal proper: A journal proper is a book where all the transactions


which cannot be recorded in other subsidiary books are recorded. In other
words, it is a book where all the residual transactions are recorded.
Following transactions are recorded in the journal proper:

a) Opening entry
b) Closing entries
c) Rectifying entries
d) Adjustment entries
e) Purchase of assets on credit
f) Sale of assets on credit
g) Bad-debt written off
h) Depreciation provided on assets etc.

The format of a journal proper is as follows:


In the books of ______
Journal Proper
Date Particulars L. F. Debit (₹) Credit (₹)

Advantages:
Following are the advantages of subsidiary books:
 It saves time and labour.
 It ensures division of work amongst the accounting personnel
and increases their efficiencies.
 It ensures specialization of work as one person maintains the
same subsidiary book over periods by which he acquires full
knowledge and understanding of the work.
 It gives the detailed information about a particular type of
transactions.
 It helps in checking errors and frauds.
 It avoids the necessity of making journal entries.

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