Subsidiary Books: A Comprehensive Introduction

The process of accounting can be deemed as a pretty tiring one. There are thousands of transactions that tend to happen in a company and that too in a single year. So, naturally, the process of journalizing every single one of those transactions can be quite a bothersome process for some people. So, to make things a little bit simpler, some companies always go for a better approach known as subsidiary books. These books are made for recording the transactions which have a similar nature and type. The order for recording the transactions is chronological. In the chapter introduction to subsidiary books notes, students can learn what the process is and how important it is for bookkeeping.

What Exactly Are Subsidiary Books?

 In the Subsidiary Books Introduction, it can be said that Subsidiary Books are basically the books that are made for the original entry. When a business is running its normal course, many transactions are related to cash, purchases, or sales. So, the transactions which tend to have a similar type or nature are recorded by the people in a single place and that is known as the subsidiary book. 

Subsidiary books save a lot of time. Not to mention that a lot of effort is saved too. Clerical work can take up a lot of time for some people and this saves them that effort and time. Instead of having a journal of every single entry, these transactions are carefully recorded in the subsidiary books in an easier manner. Subsidiary books can also be considered as some sub-journals that are meant for recording just a single type of financial transaction. When it comes to the introduction of subsidiary books, students can put their faith in our notes because these notes are created after thorough research and reading. 

Different Types of Subsidiary Books 

Here in the subsidiary books introduction, we are going to mention some of the types of subsidiary books that students need to know about. 

• Cask Book: The book that holds all the records of payments and receipts of different transactions of cash.

• Purchase Book: The book that holds all the different records of credit purchases and returns of the company goods.

• Sales Book: The book that holds all the different records of credit sales regarding the company goods. 

• Sales Return Book: The book that holds the records of different credit sales and returns of the company goods. 

• Bills Receivable Book: The book that holds the records of all the different bills that are still receivable. 

• Bills Payable Book: The book that holds all the records of different bills that are still payable. 

• Journal Proper: The book that holds the records of all the different transactions that are not present in all of the books which have been mentioned above. 

The Advantages of Having Subsidiary Books 

After learning more about the introduction of subsidiary books, it is now time for students to focus on the advantages of having subsidiary books for sure.

• It Saves Labor Hours

One of the main advantages of subsidiary books is that it tends to save a lot of effort and clerical time. First of all, there is simply not any need to provide narrations or keep journals of all the transactions. So, the time taken for completing every single transaction is significantly reduced. Also, with the use of different subsidiary books, different processes of accounting can be considered. 

• Dividing The Work 

Another one of the main benefits of having subsidiary books is that in place of having a single journal, there are now several such books. So, the resulting labour or the work done by the people can also be divided and hence efficiency is improved. 

• Specializing In Work 

In case a single person is tasked to maintain a single subsidiary book every single year for a long period, that person will gain a lot of knowledge about the books for sure. So, they can become a certain type of specialist in the preparation of that subsidiary book.

•  Referencing Become Easier

We all know that the transactions of different types are kept in different subsidiary books. So, when you are searching for a particular type of subsidiary book, it becomes really easy to find which one is where. Hence, the searching of information becomes a lot easier which in turn makes the process of referencing a bit easier too. 

• Easier Error Locating 

In certain cases, the trial balance doesn’t add up or match the results. In such cases, the locating of errors becomes a lot easier because there are separate books for different transactions. So, detection of fraud is also pretty easy too.