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Gopika Juneja, Lovely Professional University Unit 3: Sub-division of Journals

Unit 3: Sub-division of Journals Notes

CONTENTS
Objectives
Introduction

3.1 Classification of Subsidary Books
3.2 Cash Book
3.3 Purchases Day Book

3.4 Sales Day Book
3.5 Purchase Returns Book
3.6 Sales Returns Book
3.7 Bills Receivable Book
3.8 Bills Payable Book

3.9 Summary
3.10 Keywords
3.11 Self Assessment

3.12 Review Questions
3.13 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss the concept of subsidary books
Describe the classification of subsidiary books

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.

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