ACCOUNTING RECORDS SUBSIDIARY BOOKS Meaning The sub divisions

ACCOUNTING RECORDS SUBSIDIARY BOOKS

Meaning • The sub divisions of Journals into various books, recording transactions of similar nature are called Subsidiary books.

Benefits of Subsidiary books • Economy Of Labour • More Accuracy • Easy To Have Access

Classification of Subsidiary Books • • Cash Book – All Cash Transactions Purchase Book – All Credit Purchases Sales Book – All Credit Sales Purchase Returns Book – All P. Returns Sales Returns Book _ All S. Returns Bills Receivable Book –B. R From Customers Bills Payable Book –B. P to Creditors Journal Proper – Other Transactions

Cash Book {Importance of C. B} • It works as a subsidiary book cum ledger • It records payments & receipts on day to day basis • It acts as a Final Book of Records { Ledger}

Types of Cash Books • Simple Cash Book [ Cash Column Only] • Cash Book With Discount Column [ Cash & Discount Or Bank & Discount Or Cash & Bank ] • Cash Book With Bank And Discount Column [ Cash , Bank & Discount]

Important Point – Cash Book The cash book has to be balanced at the end of the given period. The total of the debit side should always be more than the total of the credit, as the cash payments cannot be more than cash receipts. The balance indicates the cash on hand at the end of period • Cash Book Formats