What is meant by Subsidiary Books What is the need for Subsidiary Books?

Meaning and types or Subsidiary Books.

The sub-division of the journal into various books recording transactions of similar nature are called subsidiary books. The subsidiary books are called books of original entry because transactions are first recorded in these books and subsequently transferred to Concerned accounts in the ledger.

The various books into which the journal is usually subdivided are as follows:

  1. Cash Book to record all cash receipts and payments.
  2. Purchase Book to record all credit purchase – of goods.
  3. Sales Book to record all credit sales of goods.
  4. Purchase return Book to  record the returns of goods and material previously purchased.
  5. Sales Returning Book to record. all goods returned by debtors.
  6. Bill Receivable Book to record. all Bills Receivable received.
  7. Bing Payable Book to record all Bills Payable accepted.
  8. Journal Proper to record all those transactions for which there is no special subsidiary book.

Need For Subdivision of the journal

Special journal refers to the journals meant for specific transactions of similar nature. Special journals are also known as subsidiary books CR day books. When the number of transactions is large, it is desirable to record the transactions in special journals instead of only one journal. This is because of the following reasons:

  1.  A considerable saying.Of clerical labor can be brought about if transactions of similar nature are recorded in ‘separate special journals.
  2. The subdivision of the journal would make. easier the job of posting in the ledger.
  3. Subdivision of the journal would facilitate the installation of internal check system.
  4. If there is only one journal it becomes bulky and voluminous.
  5. Subdivision Of the journal permits division of labor and increase efficiency of accounting work.
  6. Subdivision of the journal would provide the information on a prompt basis.

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