Types of subsidiary books
The number of subsidiary books may vary according
to the requirements of each business. Based on the nature of business and the
volume of transactions, the following subsidiary books are maintained:
i. Subsidiary book for entering cash transactions -
ii. Subsidiary books (special journal) for entering
book or purchases journal – for recording only credit purchase of goods in
which the trader deals.
book or sales journal–for recording only credit sale of goods dealt in by the
returns or returns outward book – for recording return of goods purchased by
the trader, for which no cash is immediately received.
returns or returns inward book – for recording the goods returned (out of
previous sale) by customers for which no cash is immediately paid.
receivable book – to record bills drawn or promissory notes received.
payable book – to record bills accepted or promissory notes given.
iii. Journal proper – The general journal or all
purpose journal to record transactions which do not find a place in the above
seven subsidiary books.