MEANING OF SUBSIDIARY BOOKS

Subsidiary Books refers to books meant for specific transactions of similar nature. Subsidiary Books are also known as Special journals or day books. To overcome shortcoming of the use of the journal only as a book of original entry, the journal is subdivided into specific journals or subsidiary books.

NEED OF SUBSIDIARY BOOKS

To avoid repetition.To provide information on a prompt basis.To facilitate internal check system.To classify transactions.To avoid bulky & voluminous records.

TYPES OF SUBSIDIARY BOOKS

CASH BOOKS A cash book is a special journal which is used for recording all cash receipts & cash payments .

TYPES OF CASH BOOKS 1) Single- column cash books .2) Double-column cash books.3) Triple-column cash books.4) Petty cash books.

DATERECEIPTRECEIPT No.L.FAMOUNTDATEPAYMENTVOUCHER No.L.FAMOUNT

DATERECEIPTCASH BANKDATEPAYMENTSCASHBANK

DATERECEIPT DISCOUNTCASHBANKDATEPAYMENTDISCOUNTCASH BANK

PURCHASE BOOKSThese are the books used for recording purchases on credit.Things purchased on credit for personal use are not recorded in this book. It also does not record the fixed assets purchased.

DATE PARTICULARINVOICE NO.L.FAMOUNT

SALES BOOKSBooks used for recording goods sold on credit.

DATEPARTICULAROUTWARD INVOICE NO. L.FAMOUNT

PURCHASE RETURN BOOKSBooks used for recording goods returned to the seller.

DATE PARTICULARS L.FDEBITNOTES AMOUNT

SALES RETURN BOOKSBooks used for recording the goods returned by the buyer.

DATE PARTICULARS L.F CREDIT NOTE AMOUNT

BILLS RECEIVABLE BOOKS(B/R) This is used for the purpose of recording the details of bills receivable. The individual accounts of parties from whom bills are received will be credited with the amount in the bills receivable book.

DATEFROM WHOM READACCEPTORDATE OF BILLSTERMDATE OF MATURITYWHERE PAYABLEAMOUNTHOW DEPOSED

BILLS PAYABLE BOOK (B/P)

This is used for the purpose of recording the details of bills payable. The individual accounts of the parties to whom the bills are issued will be debited with the corresponding amount in the bills payable book. The periodic total is posted to the credit of bills payable account in the ledger by writing By Sundries as per Bills Payable Book. Example:

S.NO.DATE NAME OF DRAWER PAYEEDATE OF BILLTERMDATE OF MATURITYWHERE PAYABLEAMOUNTREMARK16 MayS&Co.Arya mills16 may200630days16June2006Central bank5000

PETTY CASH BOOKThis book keeps account of all the miscellaneous spending. This might include: child fees, window-cleaning bills, stationery, postage, cleaning supplies and any other sundry item.

AMT. RECEIVED DATE PARTICULARAMOUNTPOSTAGECARRIAGETRAVELLINGSUNDRY EXP.

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