Professional Documents
Culture Documents
04. Subsidiary Books
04. Subsidiary Books
• Purchases Book
• Sales Book
• Purchases Returns Books
• Sales Returns Books
• Bills Receivable Books
• Bills Payable Books
• Journal Proper
• Cash Book
Purchases Book
• This book is used to record all Cash/ credit purchases made by the
business concern from its suppliers. This book is also known as ‘Purchases
Books’, ‘Purchases Journal’ or ‘Invoice Book’. It contains five columns, viz.,
Date, Particulars, Ledger Folio, Inward Invoice Number and Amount.
• Posting: The total of purchases book for a specified period is debited to the
purchases account in the Ledger. The personal accounts are posted by
crediting the individual accounts.
Sales books
• This book is used to record all Cash/ credit sales effected by the business
to its customers. This book is also called as ‘Sales Book’, ‘sales Journal’ or
‘Sold Book’. It contains five columns viz., Date, Particulars, L.F., Outward
Invoice Number and Amount.
• Posting: The total of the Sales Book for a specified period is credited to the
Sales Account in the Ledger. The personal account is posted by debiting
the individual accounts.
Purchases Returns Books
• This book is used to record all transactions relating to the goods returned to
suppliers. This book is also known as ‘Purchases Returns journal’ or
‘Returns Outward Book’,
Sales Returns Books
• This book is used to record all transactions relating to goods returned by
customers. This book is also known as ‘Sales Return Journal’ or ‘Returns
Inwards Book’,
Bills Receivable Book
• This book is used to record all the bills received by the business from its
customers. It contains details regarding the name of the acceptor, date of
the bill, place of payment, term of the bill, due date and the amount of the
bill
Bills Payable Book
• This book is used to record all the bills accepted by the business drawn by
its creditors. It contains details regarding the name of the drawer, payee
and date of acceptance, due date, place of payment, term and amount of
the bill.
Journal Proper
• This book is used to record all the residual transactions which cannot find
place in any of the subsidiary books. While recording, the entries are made
in the journal covering both the aspects of the transaction. The following
are some of the examples of transactions which are entered in this book.
1. Opening entries and closing entries.
2. Adjusting entries
3. Transfer entries from one account to another account.
4. Rectification entries.
5. Bills of Exchange Entries
6. Credit Purchase/sale of an asset other than goods.
Cash Book