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.In the past, traders use to keep record of the transaction in the journal. But it was Later found not convenient. If all the transaction are recorded in the journal then the journal book becomes more thick and difficult to handle it. In big business houses, it becomes impossible to carry on the work of recording business transaction. therefore now a days large scale business firms like to keep record of transaction in subsidiary books instead of journal. Subsidiary books are the book of original entry and it is also called primary records because the first entry of transaction is made in subsidiary books. On the basis of subsidiary books postings are made into concerned account afterwards.


 Subsidiary Books refers to books meant for specific transactions of similar nature. Subsidiary Books are also known as Special journals or day books. To overcome shortcoming of the use of the journal only as a book of original entry, the journal is subdivided into specific journals or subsidiary books .
Subsidiary book is the sub division of Journal. These are known as books of prime entry or books of original entry as all the transactions are recorded in their original form. In these books the details of the transactions are recorded as they take place from day to day in a classified manner


    To avoid repetition. To provide information on a prompt basis. To facilitate internal check system. To classify transactions. To avoid bulky & voluminous records.

        Types of Subsidiary Books                                                                                 

    •  CASH BOOKS  :    A cash book is a special journal which is used for recording all cash receipts & cash payments .


      1 ) Single- column cash books . 2) Double-column cash books. 3) Triple-column cash books. 4) Petty cash books.

    •   PURCHASE BOOKS :   These are the b ooks used for recording purchases on credit . Things purchased on credit for personal use are not recorded in this book. It also does not record the fixed assets purchased . DATE PARTICULAR INVOICE NO. L.F AMOUNT

    •   SALES BOOKS :  Books used for recording goods sold on credit. DATE PARTICULAR OUTWARD INVOICE NO. L.F AMOUNT

    •   PURCHASE RETURN BOOKS :    Books used for recording goods returned to the seller. DATE PARTICULARS L.F DEBIT NOTES AMOUNT

    •   SALES RETURN BOOKS   :    Books used for recording the goods returned by the buyer. DATE PARTICULARS L.F CREDIT NOTE AMOUNT

    • .BILLS RECEIVABLE BOOKS(B/R)   :   This is used for the purpose of recording the details of bills receivable. The individual accounts of parties from whom bills are received will be credited with the amount in the bills receivable book. DATE FROM WHOM READ ACCEPTOR DATE OF BILLS TERM DATE OF MATURITY WHERE PAYABLE AMOUNT HOW DEPOSED .



Definition and Explanation of Subsidiary books

Subsidiary books definition:
In each separate journal, one particular class of business transaction is recorded, that means that purchase journal may be maintained to record credit purchases of goods, Sales journal may be maintained to record credit sales of goods and cash book for recording cash transaction. Instead of recording all transaction in one journal, they are recorded in separate journal know as subsidiary books.
Subsidiary books, it is nothing but a ledger, which can be maintained by big organization concerns.
There are 7 types of subsidiary books: 
1. Cash Book:
The cash book mean by “to record all cash transactions- whatever be their nature”.In Cash book we record cash receipts and payments, Bank receipts and payments, contra entries and cash discounts transactions.
2. Purchases Book:
The Purchase book mean by “to record all transactions of credit purchase”.In purchase book, we record credit purchases information. Cash purchase information record in cash book.
3.Sales Book:
The sales book mean by “to record all transactions of credit sales”. In sales book, we record credit sales information. Cash sales information record in cash book.
4. Purchases returns Book:
The Purchase returns book mean by” to record all transactions of purchase returns to suppliers”. It is also called returns outward book or purchases returns day book.
5. Sales returns Book:
The sales returns book meant by “to record all transactions of sales returns from customers”. Sales returns book is also called returns inwards book or sales returns day book.
6. Bills Receivable book:
Bills receivable book mean by “to record of the bills received from debtors”. When a bill is received from debtor, details of it are recorded in the bills receivable book.
7. Bills payables book:
Bills payable book mean by “to record of bills accepted by us”. When a bill drawn by our creditor is accepted particulars of the same are recorded in this book.
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