Page 81 - DCOM101_FINANCIAL_ACCOUNTING_I
P. 81
Pooja, Lovely Professional University Unit 8: Subsidiary Books
Unit 8: Subsidiary Books Notes
CONTENTS
Objectives
Introduction
8.1 Classification of Subsidiary Books
8.2 Purchase Book
8.3 Purchase Return Book
8.4 Sales Book
8.5 Sales Return Book
8.6 Trade Bills Book
8.7 Journal Proper
8.8 Cash Book
8.9 Summary
8.10 Keywords
8.11 Self Assessment
8.12 Review Questions
8.13 Further Readings
Objectives
After studying this unit, you will be able to:
z Prepare Subsidiary books
z Initiate Purchase and purchase return book
z Construct Sales and sales return book
Introduction
If the transactions of the enterprise are voluminous, to ease the process of posting the transactions,
they should be classified into two categories. The transactions are segmented, one on the basis of
regular and another on the basis of non-regular occurrence.
The regular/frequent occurrence of transactions are recorded only in the separate books which
are known as subsidiary book of accounts or subsidiary journals, instead of being recorded in
the regular journal. The infrequent transactions are recorded/posted in the original journal or
journal proper which do not have any specific subsidiary journal or subsidiary books.
The subsidiary journals or books are developed by the firms based only on the occurrence of the
transactions. Normally the frequent occurrence of the transactions of the firm is a major part of
the subsidiary books of the accounting system.
LOVELY PROFESSIONAL UNIVERSITY 75
