Q.Mention four types of subsidiary books

Subsidiary books split the journal by transaction type; four common ones are the Purchases book, Sales book, Purchases returns book and Sales returns book.

In a growing business the same kinds of transactions (credit purchases, credit sales, returns, cash) recur constantly. Recording each through one journal is slow and error-prone, so the journal is sub-divided into subsidiary books (books of prime/original entry), each meant for one class of transaction.

Four types of subsidiary books:

1. Purchases book – records only credit purchases of goods dealt in.
2. Sales book – records only credit sales of goods dealt in.
3. Purchases returns (returns outward) book – records goods returned to suppliers. …