Purpose of Subsidiary Books :

i. Purchases Book records only credit purchases of goods by the trader.

ii. Sales Book is meant for entering only credit sales of goods by the trader.

iii. Purchases Return Book records the goods returned by the trader to suppliers.

iv. Sales Return Book deals with goods returned (out of previous sales) by the customers.

v. Bills Receivable Book records the receipts of bills (Bills Receivable).

vi. Bills Payable Book records the issue of bills (Bills Payable).

vii.Cash Book is used for recording only cash transactions i.e., receipts and payments of cash.

viii. Journal Proper is the journal which records the entries which cannot be entered in any of the above listed subsidiary books.