Chapter No. 9 – Other Subsidiary Books – USHA Publication Class +1 – Solution
What are the Subsidiary Books?
In big organisations, it is difficult to maintain the record of all type of transactions in the journal daybook so that’s why the journal daybook 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 journal arises. So that’s why the journal is subdivided into 8 types of Subdivided books are called subsidiary books.
These books are specific by nature because only the same nature of transactions are recorded in the same type of book like 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
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”.
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.
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.