SUBSDIARY BOOKS

In big organizations there are numerous transactions going on, in the midst of these transactions, it is not possible
to keep and maintain a record of each and every business affair. While non-recording any minute transaction can
be a havoc which the business will never resort to. This is when the subsidiary books come into the action and play
as a saviour.

Subsidiary books are nothing but an order of maintenance of recording similar natured transactions. Subsidiary
books are the subdivisions of Journal. In this content, we will know in detail about these books and types of
subsidiary books with its function.

Define Subsidiary Books

Subsidiary Books are the books that record the transactions which are similar in nature in an orderly manner. They
are also known as special journals or Daybooks. In big business institutions, it is not easy to record all the
transactions in one journal and post them into various accounts. So, for the easy and accurate recording of all the
transactions, the journal is subdivided into many subsidiary books. For every type of transaction, there is a
separate book.
Types of Subsidiary Books
There are basically 8 types of subsidiary books that are used for recording different types of transactions. So, let us
know the types.
The 8 Subsidiary books are as follows:

1. Cash Book
2. Purchase Book
3. Sales Book
 4. Purchase Return Book
5. Sales Return Book
Set of Subsidiary Books – A Brief Study
1. Cash Book
The first and most important subsidiary book is the cash book. It records all the transactions related to cash
and bank receipts and payments. There are 3 types of cash books that are maintained by an organization.
They are:
Single Column Cash Book: A single column cash book is like a ledger account. It contains a debit side and a
credit side. All Cash receipts are recorded on the debit side, and all the cash payments are recorded on the
credit side of the cash book.

Format of Single Column Cash Book:

Cash Book (Single Column)

Dr.
Cr.

Date Particulars L.F. Cash Date Particulars L.F. Cash

Double Column Cash Book: Double Column Cash Book is the same as that of Single Column Cash Book; only an
extra column of discount is added on both the debit and credit sides of the cash book. It records discounts allowed
on the debit side and discounts received on the credit side of the cash book.
The format of the double-column cash book is given below.

Cash Book (Double Column)

Dr.
Cr.

Discount Discount
Date Particulars L.F. Cash Date Particulars L.F. Cash
Allowed Received

Triple Column Cash Book: Triple Column Cash Book contains all the columns of a double column cash book and
also has an extra column for the bank. The format of the triple column cash book is given below:

Cash Book (Triple Column)

Dr. Cr.

Dat Cas Cas

Particulars L.F. Discount Allowed Bank Date Particulars L.F. Discount Received Bank
e h h

2. Purchase Book
Purchase Book is a subsidiary book that is used to record all the transactions related to credit purchases. The
purchases of the asset are never recorded in the purchase book.

Format of Purchase Book:

 Purchase Book

Particular L.F
Date Inward Invoice No. Amount
s .

3. Sales Book
The Sales Book records all the transactions related to credit sales. The sales book cannot record the sale of
assets. The sales book format is given below.

Sales Book

Dat L.F
Particulars Outward Invoice No. Amount
e .

4. Purchase Return Book

The purchase return book, also known as the return outward book, is used to record transactions of all the
returns made to the supplier. A debit note is issued against every return and is recorded in the Purchase
Return Book.

Format of Purchase Return Book:

Purchase Return Book

Dat Particulars Debit Note L.F. Detail Amount

e No. s
 5. Sales Return Book
The sales return book records all the transactions related to inward returns. It is also known as a return
inward book. When the customer returns goods, a credit note is issued to the customer for every return, and
it is recorded in the Sales Return Book.

Sales Return Book Format:

Sales Return Book

Dat
Particulars Credit Note No. L.F. Details Amount
e

Prepare the Purchase Book and Sales Book from the following transactions:
2018

Jan. 1 Bought from M/s. Uma Datt, Mumbai, on credit:

1,000 Ragisters @ ₹ 80 each

50 Reams Paper @ ₹ 250 per ream

Less: Trade Discount 25%

Add: IGST @ 5%

Jan. 2 Sold to Shri Dayal, Bengaluru:

 250 Registers @ ₹ 85 each

5 Reams paper @ ₹ 300 per ream

Charged CGST and SGST @ 2.5% each

Jan. 8 Bought from BILT, Delhi:

100 Reams Ruled Paper @ ₹ 600 per ream

Less: Trade Discount 15%

Plus IGST @ 5%

Jan. 12 Sold to Gupta Bros., Delhi:

250 Registers @ ₹ 85 each

50 Reams Ruled Paper @ 700 per ream

Less: Trade Discount 5%, charged IGST @ 5%

Jan. 18 Sold to Ram Saran Das:

20 copies Double Entry Book Keeping @ ₹ 85 each

Jan. 25 Bought from Hari Ram, Delhi:

1,000 pens @ ₹ 10 each

 Less: Trade Discount 15%

Plus IGST @ 5%

Jan. 31 Sold to Rishi Kumar, Bengaluru:

300 Registers @ ₹ 90 each

50 Reams Ruled Paper @ ₹ 700 per ream

20 Reams Paper @ ₹ 300 per ream

Trade Discount 10%, charged CGST and SGST @ 2.5% each

Solution

Purchases Book of Rahul, Bengaluru

Input
Date Particulars Invoice No. L.F. Details Cost Total
IGST

2018

Jan. 01 M/s Uma Dutt, Mumbai

1,000 Registers @ Rs. 80 each 80,000

50 Reams Paper@ Rs. 250per 12,500

ream

92,500

Less: 10% T.D. 23,125

 69,375

Add: IGST @ 5% 3,469

72,844 69,375 3,469 72,844

Jan. 08 BILT, Delhi

100 Reams Ruled Paper @ Rs. 60,000

600 per ream

Less: 15% T.D. 9,000

51,000

Add: IGST @ 5% 2,550

53,550 51,000 2,550 53,550

Jan. 25 Hari Ram, Delhi

1,000 Pens @ Rs. 10 each 10,000

Less: 15% T.D. 1,500

8,500

Add: IGST @ 5% 425

8,925 8,500 425 8,925

Jan. 31 1,28,875 6,444 1,35,319

Sales Book of Rahul, Bengaluru

 Output Output Output
Sales Total
Invoice No. Details IGST CGST SGST
Date Particulars L.F. Value (Rs)
(Rs) (Rs) (Rs) (Rs)
(Rs)
2018
Jan. 02 Shri Dayal, Bengalur
250 Registers @ Rs. 85 each 21,250
5 Reams Paper @ Rs. 300 per ream 1,500
22,750
Add: 2.5% CGST 569
2.5% SGST 569
23,888 22,750 - 569 569 23,888

Jan. 12 M/s.Gupta Bros., Delhi

250 Registers @ Rs. 85 each 21,250
50 Reams Ruled Paper @ Rs. 700 per ream 35,000
56,250
Less: 5% Trade Discount (2,812)
53,438

Add: 5% IGST 2,672

56,110 53,438 2,672 - - 56,110

Jan. 18 Ram Saran Das

20 copies Double Entry Book Keeping @ Rs. 85 each 1,700
 1,700 - - - 1,700

Jan. 31 Rishi Kumar, Bengaluru

300 Registers @ Rs. 90 each 27,000

50 Reams Ruled Paper @ Rs. 700 per ream 35,000

20 Reams Paper @ Rs. 300 per ream 6,000

68,000

Less: 10% Trade Discount 6,800

61,200

Add: 2.5% CGST 1,530

2.5% SGST 1,530

64,260 61,200 - 1,530 1,530 64,260

Jan. 31 1,39,088