What are Subsidiary Books in Accounting

The classifications of transactions in to groups and relevant transactions are recorded in a separate journals are called as Subsidiary books. The subsidiary books in Accounting are also called as books of original entry or subsidiary journals.

Every business company records its day to day transactions in journal. It is an easy process to record in journal when business transactions are in small number. When the business transactions are in large size, it is difficult to record in one journal. To overcome this problem, book keeping journal is divided into separate journal books as per nature of accounts.

Types of Subsidiary Books

Subsidiary books in Accounting can be divided into different types

  1. Purchase book
  2. Sales Book
  3. Purchase return book
  4. Sales Return Book
  5. Cash Book
  6. Petty Cash Book
  7. Journal Proper

Purchase Book: In purchase book, all the credit purchases of company are recorded. All purchase transactions are recorded on basis on purchase bills received from supplier.

Sales Book: In sales book, all the credit sales of of company are recorded. Sales transactions are recorded on basis of sales invoices issued to customers.

Purchase Return Book: In this purchase return book, all the transactions are recorded that related to credit purchase goods are returned to the original suppliers.

Sales Return Book: In the sales return book, all the transactions are recorded that related to credit sold goods returned from the original customers.

Cash Book: Cash book is also called as original entry of book. All the transactions are related to cash involved are recorded in cash book. For e.g. liquid cash, bank cheque, etc.

Petty Cash Book: All small cash payments such as postage bill, telegram payment, carriage charges, etc are recorded in a petty cash book.

Journal Proper: All the transactions which are different in nature and which can be recorded in subsidiary books are recorded in a special book which is called as journal proper.