Friday, August 1, 2014

Subsidiary Books of Accounts

Subdivision of, Journal:-

When the quantum & volum of transactions of a busin, unit & organ,  rises to a great extent & it became clear that a single journal is inadequate as the sole book of original entry. It was found advantageous to have a separate book for the different activities, like purchases, sales, sales return, purchases return & so on. This would facilitate a considerable saving of time, space & labour. The main type of journal are as follows:-
·         Caash book:  This records all transactions in caaash or by cheeques.
·         Purchasees day, boook: This records all transactions relating to goods, purchased on credit.
·         Salees day, boook: This records all transactions relating to goods, sold on credit.
·         Salees return, boook: This records return of goods, by the customers.
·         Purchases return ,boook: This records return of goods, to suppliers.
·         Bills Payable, boook: This records transactions regarding, bills payable.
·         Bills Receivable, boook: This records entries regarding, bills receivable.
·        Journal, Proper: Those transactions, which are not recorded in any of the above mentioned
      books are recorded in this book.


These subdivision of Journal into various books are called, Subsidiary Books. It is important to know that the subsidiary books are not a part of the double entry system of bookkeeping. It is a memorandum book, of transactions which are subsequently entered in the ledger.

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