Purpose of Subsidiary Books - QS Study
QS Study

Purpose of Subsidiary Books

Subsidiary book is the sub division of Journal. These are known as books of major entry or books of unique entry as all the dealings are recorded in their unique form. In these books the details of the transactions are recorded as they take place from day to day in a confidential method

  • Purchases Book records only credit purchases of goods by the trader.
  • Cash Book Used to record all the cash receipts and payments.
  • Sales Book is meant for entering only credit sales of goods by the trader.
  • Purchases Return Book records the goods returned by the trader to suppliers.
  • Sales Return Book deals with goods returned (out of previous sales) by the customers.
  • Bills Receivable Book records the receipts of bills (Bills Receivable).
  • Bills Payable Book records the issue of bills (Bills Payable).
  • Cash Book is used for recording only cash transactions i.e., receipts and payments of cash.
  • Journal Proper is the journal which records the entries which cannot be entered in any of the above listed subsidiary books.

These books record the details of the transactions and therefore facilitate the ledger to become brief. Future reference and any preferred analysis becomes simple as transactions of comparable nature are recorded jointly.