What is subsidiary book and its types?
Similarly one may ask, what are the types of subsidiary books?
We can divide the subsidiary books into the following types:
- Cash book.
- Purchases book.
- Sales book.
- Purchases return or return outwards book.
- Sales return or return inwards book.
- Bills receivable book.
- Bills payable book.
- Journal proper.
Secondly, how many subsidiary books are there? Top 7 Types of Subsidiary Books – Discussed! Article shared by : ADVERTISEMENTS: Here we detail about the seven types of subsidiary books, i.e, (i) Purchases Book, (ii) Sales Book, (iii) Purchases Return Book, (iv) Sales Return Book, (v) Bills Receivable Book, (vi) Bills Payable Book and (vii) Journal Proper.
In respect to this, what are subsidiary books?
Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work.
Why are subsidiary books important?
Importance or Objectives or Advantages of Subsidiary Books. Saving of Time and Labor: If all the transactions of similar nature are recorded together in a separate book, a considerable amount of labor and time can be saved. There is no need of preparing journal for each transaction with its narration.