Subsidiary Books and its Types – Example

Subsidiary book feature image

Books in which we record a specific type of transaction is caller subsidiary books because It is too difficult to records all business transaction in the journal in practical. In order to make the quick, efficient and reliable recording of the business transactions, they need for subdivision of journal arises. Subdivided books are called subsidiary books. these books are also called daybook.

 1. Cash Book:

In Cashbook, we will record the all-cash transaction of the business. This book keeps the 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 will Explain in 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 

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:

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

The following type of transactions are posted in this account :

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

If you have any questions about this topic of Subsidiary Books please ask it in the comment section below.

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