Subsidiary Books

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Subsidiary Books also known as special Journal are the books of original entry or the prime entry. These books are used to record the specific transactions of similar nature for the first time on the basis of source documents like voucher, receipt, cash memo etc. So we can say that subsidiary Books are part of journal.

Advantages of Subsidiary Books 
1. Subsidiary Books facilitate the division of work and makes it easy and efficient
2. Subsidiary Books also permit the installation of internal check system.
3. Subsidiary Books permit the use of specialized skill . 
Purchases book is a subsidiary book which is meant for recording the purchase of goods on credit only. 
Cash purchases are not recorded in purchase book.
Posting is done in the supplier’s/ creditors account daily from the purchases book with their respective amounts. 
At the end of the eek/month, the total of the purchases book is debited to the purchases account in the ledger.
Purchases Account shows all purchases of goods (whether for cash or on credit .

In the Sales Book, only credit sale of goods are recorded.
Cash Sales will be entered in the Cash Book
Sales Account is credited with the monthly total of the Sales Book.
Only sale of goods are recorded in sales book for sale of every other item entry is made in journal proper. 
Sales Account shows all sales  of goods (whether for cash or on credit .

Purchase return book records all the details of goods returned by the business organization to the supplier(s)
A debit note is sent to supplier informing that his account has been debited with the amount mentioned in the debit note for the return of the goods to him.

Goods returned by the customers are recorded in this book.
Goods sold for cash and returned are not recorded in sales returns book.
A credit note is sent to customer informing him that his account has been credited with the value of goods returned for the goods returned by him.

Journal Proper is also one of the subsidiary books. It is used to record those transactions which cannot be recorded in any other subsidiary book.  Few of the these transactions are
Opening Entries at the beginning of accounting period
Closing Entries at the end of accounting period
Adjustment Entries
Transfer Entries
Rectification Entries for rectifying errors
Purchase of Fixed Assets/Stationery
Sale of Worn-out or Obsolete Assets
Goods withdrawn by Proprietor for Personal use
Goods destroyed by Fire

These online MCQ Mock tests and MCQ questions includes all main concepts of the chapter (Subsidiary Books) in CS Foundation, Financial Accounting and Auditing Computer Based Exam.

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