Subsidiary Books and its Types – Example

Books in which we record a specific type of transaction is called subsidiary books because it is too difficult to record all business transaction in the journal in practical.

What are the Subsidiary Books?

In big organisations, it is difficult to maintain the record of all types of transactions in the journal daybook so that’s why the journal daybook is divided into various types of sub books which are known as subsidiary books. In other words, In order to make the quick, efficient and reliable recording of all types of business transactions, the need for subdivision of the journal arises. So that’s why the journal is subdivided into 8 types of Subdivided books called subsidiary books.

These books are specific by nature because only the same nature of transactions are recorded in the same type of book as in the purchase book only transactions related to the purchase of goods are recorded.

Types of Subsidiary Books: –

The types of subsidiary books are divided on the basis of the nature of business transactions. There are 8 types of subsidiary books which are shown as follows: –

1. Cash Book:

In Cashbook, we will record the all-cash transaction of the business. This book keeps a record of all cash payments and cash receipts. Here are the Four types of Cash Books shown below

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

 We have explained in the next articles

2. Purchase Book:

Purchase Book is that book in which we record all the business credit transactions related to the purchase of goods only. Type of Purchase Book shown below:

1. Simple
2. Columnar

3. Sales Book:

Sales Book is that book in which we record all the business credit transactions related to the sale of goods only. Type of Sales Book shown below:

1. Simple
2. Columnar

4. Purchase Return Book/ Returned Outward Book:

Purchase Return Book is the book in which we record the goods returned to the supplier or the vendor. it is also called “Return Outward Book”, “Purchase Return Journal”  and “Purchases Returns Day Book”.

5. Sales Return Book/Returned Inward Book: 

Sales Return Book is a book in which we record the goods returned by the customers or buyers. It is also called “Return Inward Book”, “Sale Returns Journal”  and “Sale Returns Day Book”.

6. Bill Receivable Book:

Bill receivable is an instrument of debt written by the seller of goods and services and accepted by the buyer of goods and services. We have recorded all transactions related to Bills receivable in the bill receivable book.

7. Bill Payable Book:

Bill Payable is an instrument of debt written by the seller of goods and services and accepted by the buyer of goods and services. We have recorded all transactions related to Bills Payable in the bill payable book.

8. Journal Proper or other subsidiary books:

Journal Proper is an original entry book like all subsidiaries Books. All those transactions which can not record in any of the other subsidiary books are recorded in the journal proper.

The following type of transactions are posted in this account :

1. Non-Cash transactions
2. Non-Goods transactions

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