Advantages of Subsidiary Books
Subsidiary Books helps to save time and labor by recording similar type of transactions in a separate book. It also helps to maintain accounts and thus avoids the necessity of journal entries. The advantages of maintaining subsidiary books can be summarized as under:
Effectiveness: The division of labor helps the decrease in work load, saving in time and stationery. It also gives advantages of area leading to effectiveness.
Division of Labour: The division of journal, resulting in division of work, ensures more clerks working independently in recording original entries in the subsidiary books.
Prevents Errors and Frauds: The accounting work can be divided in such a manner that the work of one person is automatically checked by another person. With the use of internal check, the opportunity of incidence of errors and frauds may be avoided.
Easy Reference: It facilitates simple references to any exacting item. For example total credit sales for a month can be easily obtained from the Sales Book.
Easy Postings: Posting from the subsidiary books are made at convenient intervals depending upon the nature of the business.