Advantages of subsidiary books
The advantages of maintaining subsidiary books can
be summarised as under:
business transactions are classified and grouped conveniently as cash and non
cash transactions, which are further classified as credit purchases, credit
sales, returns, etc. As separate books are used for each type of transactions,
individual transactions are properly and systematically recorded in the
transactions of a particular nature are recorded at one place, i.e., in one of
the subsidiary books. For example, all credit purchases of goods are recorded
in the purchases book and all credit sales of goods are recorded in the sales
book. It facilitates posting to purchases account, sales account and concerned
As journal is
sub-divided, the work will be sub-divided and different persons can work on
different books at the same time and the work can be speedily completed.
sub-division of work gives the advantage of specialisation. When the same work
is done by a person repeatedly the person becomes efficient in handling it.
Thus, specialisation leads to efficiency in accounting work.
Subsidiary books provide
complete details about every type of transactions separately. Hence, the
management can use the information as the basis for deciding its future
actions. For example, information regarding sales returns from the sales
returns book will enable the management to analyse the causes for sales returns
and to adopt effective measures to remove deficiencies.
check becomes more effective as the work can be divided in such a manner that
the work of one person is automatically checked by another person. With the use
of internal check, the possibility of occurrence of errors or fraud may be
avoided or minimised.
transactions are entered in one journal, it is difficult to locate information
about a particular item. When subsidiary books are maintained, details about a
particular type of transaction can be obtained from subsidiary books. The
maintenance of subsidiary books helps in obtaining the necessary information at
transactions relating to a particular item are entered in a subsidiary book, it
gives detailed information. It is easy to arrive at monthly or quarterly
As there are
many subsidiary books, work of entering can be done simultaneously by many
persons. Thus, it saves time and accounting work can be completed quickly.
posting is reduced as posting is made in periodical totals to the impersonal
account, for example, Purchases account.