A PRESENTATION ON

SUBSIDIARY BOOKS
PRESENTED BY

ØMANISH SINGH
ØSMITA WANKHEDE E .
ØSONAM AGGARWAL
M .
ØANKUR KHANDARE
A .
ØANKITA DWIVEDI
I .
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 SUBSIDIARY BOOKS
Subsidiary books or special journals are
the various books of original entry maintained
under the modern system of accounting for
recording first the various business
transactions, as and when they take place .

The subsidiary books are called special

journals, as each such book is maintained for
recording such transactions .

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 NEED FOR SUBSIDIARY BOOKS

When business transactions were very

few , only one book of original entry called
journal was used . Even today for small
transactions only one Journal is
maintained .
However for numerous transactions
maintenance of various journals for record
keeping is highly inconvenient and suffers
certain defects like the periodical totals
of transactions of same nature such as
monthly credit sales or purchases , monthly
sales returns etc . cannot be ascertained
easily .
To overcome the above drawback
subsidiary books are introduced . Under this
systems several journals are maintained for
recording specific type of transactions .
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 objectives
ØTo simplify the recording of business
transactions in the book of original entry .
Ø
ØTo facilitate the classification of
transactions according to their name .
Ø
ØTo make it easier to locate any transactions
recorded in the book of original entry .
Ø
ØTo reduce the chances of errors and frauds in
the recording of business transactions in the
books of original entry .

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 Advantages of subsidiary books

ØRecording of transactions in the books of

original entry is specified and time
and labor are saved .
Ø
ØIt reduces the chances of errors in
accounting because recording of transactions
becomes simplified .
Ø
ØWhen different types of transactions are
recorded separately the journals will not
become bulky and hence can be handled easily by
clerks .
Ø
ØUnder this system , the chances of fraud are
minimized , as the work is distributed
among the book - keepers . 5
Types of subsidiary books

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 Purchases book
Purchases book records all credit
purchases made by the organization . It is
also called as purchases journal , invoice -
book or Bought - Day - Book .

It is used to record all credit

purchases of goods which are meant for
resale in the business . Cash purchases of
goods , cash and credit purchases of assets
are not entered in this book .

Credit purchases other than goods such

as stationary items should not be recorded
in purchases book .

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 FORMAT
Date Particulars Invoice L.F. Amount Remarks
No.

Where
Date Column – Represents the date on which
the transaction took place .
Particulars Column – This column includes
the name of the seller and the particulars of
goods purchased .
Inward Invoice No . Column – Reveals the
serial number of the inward invoice .
LF . Column – This column shows the page
number of the suppliers account in the ledger
accounts .
Amount Column – This column represents the
net price of the goods , i . e , the amount which
is payable to the creditors after adjusting
discount and expenses
Remarks Column – Contains any extra 8
information .
 sales books

It records all credit sales of goods made by

the organization during a specific period.
It is also called as Sales Day book or Sales
Journal.

Cash sales , cash and credit sales of

assets are not entered in this book . The entries
in the sales book are on the basis of the invoices
issued to the customers with the net amount of sale.

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 format
Date Particulars Invoice L.F. Amount Remarks
No.

Where
Date Column – Represents the date on which the
transaction took place .

Particulars Column – Includes the name of the

customer and particulars of the goods sold .

Invoice No . Column – Reveals the serial number

of the outward invoice .

LF . Column – shows the page number of the

suppliers account in the ledger .

Amount Column – shows the net price of the

goods , i . e . the amount which is payable to the creditors .
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Remarks Column – Contains any extra
 Purchases returns book

This book is used to record all returns

of goods by the business to the suppliers . The
entries in the Purchases Returns Book are
usually made on the basis of debit note
issued to the suppliers or credit note
received from the suppliers .

We called it a Debit note because

suppliers account is debited with the amount
written in this note . The same note is termed
as credit note from the receiving party ’ s
point of view because he will credit the
account of the party from whom he has
received the note together with goods .

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 format
Date Particulars Debit Note L.F. Amount Remarks
No.

Where
Date Column – Represents the date on which the
transaction took place .

Particulars Column – includes the name of the

purchaser and the particulars of goods purchased .

Debit Note No . Column -- records the serial

number each debit note .

LF . Column – shows the page number of the suppliers

account in the ledger accounts .

Amount Column – shows the net price of the goods ,

i . e , the amount which is payable .
Remarks Column – Contains any extra information . 12
 Sales returns book
This book is used to record all returns
of goods to the business by the customers .
The entries in the sales return book are
usually on the basis of credit notes issued
to the customers or debit notes issued by
the customers .

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 format
Date Particulars Credit Note L.F. Amount Remarks
No

Where
Date Column – Represents the date on which the
transaction took place .

Particulars Column – includes the name of the

purchases and the particulars of goods purchased .

Credit Note No . Column -- records the serial

number of each credit note .

LF . Column – shows the page number of the

suppliers account in the ledger accounts .

Amount Column – shows the net price of the

goods , i . e , the amount which is payable .
Remarks Column – Contains any extra information . 14
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