Page 94 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting Mahesh Kumar Sarva, Lovely Professional University

Notes Unit 6: Subsidiary Books

CONTENTS
Objectives
Introduction

6.1 Meaning of Subsidiary Books
6.1.1 Advantages of Subsidiary Books
6.2 Cash Book

6.2.1 Single Column Cash Book
6.2.2 Two Column Cash Book
6.2.3 Three or Triple Column Cash Book
6.2.4 Petty Cash Book
6.3 Other Subsidiary Books

6.3.1 Purchases Day Book
6.3.2 Sales Day Book
6.3.3 Purchase Returns Book

6.3.4 Sales Returns Book
6.3.5 Bills Receivable Book
6.3.6 Bills Payable Book
6.4 Summary
6.5 Keywords

6.6 Review Questions
6.7 Further Readings

Objectives

After studying this unit, you will be able to:
 Prepare Subsidiary books
 Initiate Purchase and purchase return book

 Construct Sales and sales return book
Introduction

Before we list various books into which the journal is sub-divided, let us understand the basis
for its subdivision. You may adopt any basis. But, the principle generally followed is that
transactions of the same nature are to be recorded at one place. For example, the cash receipts
and cash payments may be grouped into one category and recorded in a separate book. Similarly,
all credit purchases of goods may be grouped into one category, all credit sales of goods into
another category and recorded in separate books.

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