Types of Subsidiary Books - SS1 Accounting Lesson Note
Subsidiary books are records entered in a separate book of accounts in order to help businesses to organize and categorize their financial transactions. Each of these subsidiary books serves a specific purpose in the accounting system of a business, helping to ensure that all financial transactions are accurately recorded and organized. There are several types of subsidiary books, and they include:
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Sales day book: This book records all daily sales transactions made on credit. It includes details such as the name of the customer, the date of the sale, the amount sold, and the payment terms.
Purchase day book: This book records all purchases made on credit. It includes details such as the name of the supplier, the date of the purchase, the amount purchased, and the payment terms.
Sales return book/Return inward journal: This book records all goods returned to the business by customers. It includes details such as the name of the customer, the date of the return, and the amount returned.
Purchases return book/Return outward journal: This book records all goods returned by the business to its suppliers. It includes details such as the name of the supplier, the date of the return, and the amount returned.
Cash book: This book records all cash transactions made by the business. It includes details such as the date of the transaction, the amount of cash received or paid out, and the reason for the transaction.
Petty cash book: This book records all small cash payments made by the business, such as office supplies, postage, or taxi fares. These cash payments are used to disburse expenses carried out in the business.
Bank book: This book records all transactions made through the business's bank account. It includes details such as the date of the transaction, the amount deposited or withdrawn, and the reason for the transaction.
Journal proper/General journal: This book records all transactions that do not belong in any of the other subsidiary books. It includes details such as the date of the transaction, the accounts affected, and the amount involved.