Subsidiary Book

Subsidiary Books (Special Journals) Introduction Subsidiary books, also known as special journals, are the books of original entry maintained to record specific types of transactions separately. In large business organizations, recording all transactions in a single journal becomes difficult and time-consuming. To overcome this problem, transactions are classified and recorded in different subsidiary books. Meaning A Subsidiary Book is a special book maintained to record similar types of business transactions before posting them to the ledger. Need for Subsidiary Books 1. To divide work among accounting staff. 2. To save time and avoid confusion. 3. To record transactions systematically. 4. To reduce errors and improve efficiency. 5. To facilitate easy posting to ledger accounts. Types of Subsidiary Books 1. Cash Book Records all cash and bank transactions. It acts as both a journal and a ledger. Single column cash book Double column cash book Three column cash book 2. Purchases Book R...