4 Financial Accounting · 4.2 Journal, ledger and subsidiary books

4.2.2 Subsidiary books: cash book (single, double, triple column, petty cash), purchases, sales, returns and bills books

Instead of one journal, a business keeps subsidiary books for repeated kinds of transactions (cash, credit purchases, credit sales, returns, bills); only their totals and personal items are posted to the ledger, and whatever fits none of them goes to the journal proper.

  • APPSC Paper I
  • Advanced level
  • 10 min read
  • Full course

Key terms

  • subsidiary books
  • special journals
  • cash book
  • single column cash book
  • double column cash book
  • triple column cash book
  • contra entry
  • discount allowed
  • discount received
  • bank overdraft
  • petty cash book
  • imprest system
  • purchases book
  • sales book
  • purchases returns book
  • sales returns book
  • debit note
  • credit note
  • bills receivable book
  • bills payable book
  • journal proper
  • trade discount

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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