Subsidiary books are specialized books of original entry used to record similar types of transactions in a dedicated format. They help in maintaining systematic records by reducing the load on the general journal. Each book is designed for frequent and repetitive transactions, ensuring efficiency. This segregation of transactions improves accuracy and streamlines record-keeping.
Cash Book
The Cash Book is a book of original entry used to record all cash transactions, both cash received and cash paid. It reflects the daily cash position of a business and eliminates the need for a separate cash ledger account. It is usually maintained daily and forms the basis of managing a firm’s liquidity.
- Records only cash receipts and payments, not bank transactions
- Helps monitor the real-time cash balance
- Serves as both journal and ledger for cash
- Forms part of the internal control system for cash management
Bank Book
The Bank Book is used to record all transactions made through the bank, such as cheques, NEFT, RTGS, or UPI. It keeps track of deposits and withdrawals and helps in preparing the Bank Reconciliation Statement. It gives an up-to-date view of the bank account balance maintained by the business.
- Records only bank receipts and payments, excluding cash
- Useful for maintaining accurate bank records
- Helps in matching entries with the bank statement (BRS)
- Acts as a control tool for managing banking activities and errors
Purchase Register
The Purchase Register is used to maintain detailed records of all goods purchased, especially on credit. It shows supplier-wise details, invoice numbers, amounts, and purchase dates for effective tracking. This register helps monitor purchases, control expenses, and prepare reports.
- Records all purchases, especially credit-based ones
- Maintains details like supplier, invoice number, amount
- Helps track supplier dues and manage purchase volume
- Supports audit and verification of purchase-related transactions
Sales Register
The Sales Register keeps a record of all sales made, particularly credit sales to customers. It includes details such as customer names, invoice numbers, product details, and amounts. This register helps in analysing revenue and outstanding receivables.
- Records credit sales to customers for goods sold
- Includes invoice number, customer name, quantity, and value
- Helps in tracking customer balances and sales performance
- Assists in monitoring outstanding receivables and payment collections
Purchase Returns Register
Also called the Returns Outward Register, it records goods returned by the business to suppliers. These returns may happen due to defects, wrong delivery, or excess supply of goods. It adjusts the total purchases and the amount payable to the supplier.
- Maintains details of supplier-wise returned goods
- Reduces total purchase account balances
- Helps in inventory and supplier account adjustments
- Facilitates accurate reconciliation of supplier accounts and payments
Sales Returns Register
Also known as the Returns Inward Register, it records goods returned by customers to the business. Returns may be due to defective items, excess delivery, or dissatisfaction with the product. It helps in adjusting customer accounts and updating inventory levels.
- Records customer-wise return transactions
- Reduces the total sales and receivables
- Helps maintain accurate stock and revenue records
Journal Register
The Journal Register is used to record transactions that do not fit into any specific subsidiary book. It includes entries like opening balances, adjustments, depreciation, and error corrections. This register acts as a general-purpose book and supports accurate ledger postings.
- Records non-routine or irregular transactions
- Used for adjustments, provisions, rectifications, etc.
- Complements other books to maintain complete financial records