What are Subsidiary Books?

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Subsidiary Books are the books that record the transactions which are similar in nature in an orderly manner. They are also known as special journals or Daybooks. In big organizations, it is not easy to record all the transactions in one journal and post them into various accounts. So for the easy and accurate recording of all the transactions, the journal is subdivided into many subsidiary books. For every type of transaction, there is a separate book.


Types of Subsidiary Books

There are basically 8 types of subsidiary books that are used for recording different types of transactions. So what are the subsidiary books?

The 8 Subsidiary books are as follows:

  • Cash Book

  • Purchase Book

  • Sales Book

  • Purchase Return Book

  • Sales Return Book

  • Bills Receivable Book

  • Bills Payable Books

  • Journal Proper

Cash Book

The first and most important subsidiary book is the cash book. It records all the transactions related to cash and bank receipts and payments. There are 3 types of cash books which are maintained by an organization. They are:

  • Single Column Cash Book: A single column cash book is like a ledger account. It contains a debit side and a credit side. All Cash receipts are recorded in the debit side, and all the cash payments are recorded in the credit side of the cash book.

Format of Single Column Cash Book:

Cash Book (Single Column)

Dr.                                                                                                                               Cr.

Date

Particulars

L.F.

Cash

Date

Particulars

L.F.

Cash










  • Double Column Cash Book: Double Column Cash Book is the same as that of Single Column Cash Book; only an extra column of discount is added on both the debit and credit side of the cash book. It records discounts allowed on the debit side and discounts received on the credit side of the cash book.

Format of double column cash book is given below.

Cash Book (Double Column)

Dr.                                                                                                                                       Cr.

Date

Particulars

L.F.

Discount

Allowed

Cash

Date

Particulars

L.F.

Discount

Received

Cash












  • Triple Column Cash Book: Triple Column Cash Book contains all the columns of double column cash book and also has an extra column for the bank. The format of the triple column cash book is given below:


Cash Book (Triple Column)

Dr.                                                                                                                                                              Cr.

Date

Particulars

L.F.

Discount Allowed

Cash

Bank

Date

Particulars

L.F.

Discount Received

Cash

Bank














Purchase Book

Purchase Book is a subsidiary book that is used to record all the transactions related to credit purchases. The purchases of the asset are never recorded in the purchase book. 

Format of Purchase Book:

Purchase Book

Date 

Particulars

Inward Invoice No.

L.F.

Amount







Sales Book

The Sales Book records all the transactions related to credit sales. The sales book cannot record the sale of assets. The sales book format is given below.


Sales Book

Date

Particulars

Outward Invoice No.

L.F.

Amount







Purchase Return Book

The purchase return book, also known as the return outward book, is used to record transactions of all the returns made to the supplier. A debit note is issued against every return and is recorded in the Purchase Return Book.


Format of Purchase Return Book:

Purchase Return Book

Date

Particulars

Debit Note No. 

L.F.

Details

Amount








Sales Return Book

The sales return book records all the transactions related to inward returns. It is also known as a return inward book. When the customer returns goods, a credit note is issued to the customer for every return, and it is recorded in the Sales Return Book.


Sales Return Book Format:

Sales Return Book

Date

Particulars

Credit Note No.

L.F.

Details

Amount








Bills Receivable Book

The Bills Receivable Book records all the transactions of bills drawn in favour of the business. The total of the bills receivable book is posted on the debit side of the Bills Receivable account. The Format of Bills Receivable Book is as follows.


Bills Receivable Book

Date of Bill

Bill No.

Acceptor

From

Terms

Due Date

Amount









Bills Payable Book

The Bills Payable Book records all the transactions related to bills that are drawn on the business and are payable by the business. The Bills Payable Books Format is as follows.


Bills Payable Book

Date of Bill

Bill No.

Drawee

Payee

Terms

Date of Maturity

Amount









Journal Proper

There are certain transactions that cannot be recorded in any of the above-mentioned books; these transactions are termed as miscellaneous transactions. So the Journal Proper is used to record all the miscellaneous transactions. It includes transactions such as credit purchase and sale of assets, depreciation etc.

FAQ (Frequently Asked Questions)

Q1. What is the Difference Between Subsidiary Books and Ledger?

Ans. The Difference between Subsidiary Books and Ledger is as follows.


Subsidiary Books

Ledger

These are a set of intermediary accounts linked to ledger accounts.

They are referred to as master accounts where transactions are recorded.

The group of transactions share common characteristics.

The group of transactions have different characteristics.

Contains a large amount of data.

Contains a limited amount of data.

It does not have a chart of accounts.

It has a chart of accounts.

It is a part of the ledger accounts.

It controls the Subsidiary books.

It is optional for the purpose of recording transactions.

It is compulsory for the purpose of recording transactions.

Q2. What is Meant By Subsidiary Books?

Ans. While studying Accounts, a question arises as what do you mean by subsidiary books? So here is the answer, Subsidiary Books are the books that record transactions of similar nature in a chronological manner. Subsidiary Books are also known as Daybook. In organizations, it sometimes becomes difficult to record all the transactions in the same journal. So to simplify the recording, subsidiary books are used. Subsidiary Books makes the recording of transactions easy and accurate. There are basically 8 types of subsidiary books, and they are:

  • Cash Book

  • Purchase Book

  • Sales Book

  • Purchase Return Book

  • Sales Return Book

  • Bills Receivable Book

  • Bills Payable Book

  • Journal Proper.