Ch 5Subsidiary Books — Class 11 Book-Keeping and Accountancy, concept-first.

Every business enters into a very large number of transactions of a similar kind — hundreds of credit purchases, hundreds of credit sales, dozens of bills accepted and received, and so on.

The Purchase Book (also called the Purchases Journal or Purchases Day Book) records only credit purchases of goods — goods that the business normally deals in, meant for resale or for use in productio…

The Sales Book (also called the Sales Journal or Sales Day Book) is the mirror image of the Purchase Book — it records only credit sales of goods dealt in by the business.

When goods already purchased are found defective, damaged, or not as ordered, they are sent back to the supplier.

When a customer returns goods sold to them on credit, the return is recorded in the Sales Returns Book, also called the Returns Inward Book.

A Bill of Exchange (or a Promissory Note) is a written, signed instrument by which one party promises, or is ordered, to pay a certain sum of money to another party on a specified future date.

However many subsidiary books a business keeps, some transactions never fit any of them. The Journal Proper (also called the Journal Residuary) is the book of original entry that records EVERY transac…

The Cash Book is the subsidiary book that records every transaction involving an actual receipt or payment of cash (and, in its wider forms, of bank transactions too).

A business's main Cashier deals with large receipts and payments — sales proceeds, supplier payments, salaries.