Necessities of Subsidiary Books - QS Study
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Necessities of Subsidiary Books

Subsidiary Books are those books of unique entry in which transactions of comparable nature are recorded at one place and in sequential order.

Moreover, transactions can be classify and grouped expediently according to their nature, as some transactions are generally of repetitive in nature. Generally, transactions are of two types: Cash and Credit.

Cash transactions can be grouped in one sort whereas credit transactions can be grouped in another sort. Thus, in practice, the major journal is sub-divided in such a way that a divide book is used for each category or group of transactions which are recurring and adequately bulky in number.

Each one of the subsidiary books is a particular journal and a book of unique or major entry. Though the natural type of journal entries are not passed in these sub-divided journals, the double entry principles of accounting are strictly followed.

Subsidiary books effect considerable saving of clerical labor in postings and narration. Transactions of any one class such as credit purchases, credit sales, cash transactions etc., are recorded through separate subsidiary journals and there is no need for giving narration.