SUBSIDIARY BOOKS OF ACCOUNT

As stated earlier journal is a book of primary entry. It means all business transactions are first recorded in the journal. Journal is called the subsidiary book. However, it is not advisable to record all transactions in one journal for large business organizations. Therefore, the journal is sub-divided into many subsidiary books. The sub-division of journal into various subsidiary journals in which transactions of similar nature are recorded are called subsidiary books. The following are the subsidiary books:

1. Journal

2. Purchases Book

3. Sales Book

4. Purchases Returns Book

5. Sales Returns Book

6. Bills Receivable Book

7. Bills Payable Book

8. Cash Book.