Subsidiary books

In small business firms, the volume of transactions is also small and hence, all of them can be recorded in one subsidiary book namely, the journal. But in large business houses since the number of transactions if large, it is impossible to enter them in one subsidiary book. Therefore, it is desirable to sub-divide the transactions according to their nature. And it is customary to keep each division of transactions in one book. The book in which the transactions are entered at first time are known as subsidiary books.

Kinds of subsidiary books:

• Cash book to record cash receipts and payments.
• Purchase book for recording credit purchase of goods.
• Sales book or day book for recording all goods sold on credit
• Purchases Returns book for recording all goods sold on credit.
• Purchsess Returns book or Returns outwards book for recording all purchses returned to the creditors.
• Sales returns book or Returns Inwards book for recording all sales returned by the custoemers.
• Bills receivables book to keep record of bills received from customers.
• Bills payable book to keep record of bills payable to creditors.
• Journal proper to keep a record of those transactions for which there is no separate book.