Subsidiary Books

In small business, no. of transactions are very less and hence journal entries can be easily prepared and posted. In large business, it is not possible.

Dr. P.H.Rao, IMIS,Bhubaneswar

Limitations of Journal
Bulky and Voluminous 2. Does not provide information on prompt basis. 3. Does not facilitates internal check and control system.
1.

Dr. P.H.Rao, IMIS,Bhubaneswar

Hence, the Special Journal or Subsidiary Book

1.

Cash Journal
Cash Transaction Bank Transaction Discount Transaction

Dr. P.H.Rao, IMIS,Bhubaneswar

2. Goods Journals
Purchase Book
Credit Purchase of Goods Credit Sales of Goods Return of goods sold on credit Return of goods purchased oncredit

Sales Book Sales Return Book Purchase Return Book

Dr. P.H.Rao, IMIS,Bhubaneswar

3. Bills Journal
Bills Receivable Book Bills Payable Book

4. Journal Proper
All those which do not find place in any of the above books.

Dr. P.H.Rao, IMIS,Bhubaneswar

Advantages of Special Journals

Facilitates division of work 2. Permits installation of internal check system 3. Permits use of specialized skills 4. Time and labour saving in journalizing and posting
1.

Dr. P.H.Rao, IMIS,Bhubaneswar

Trade Discount Vs. Cash Discount

Basis of distinction Meaning Purpose Time when allowed Disclosure in the invoice and ledger A/c variation

Dr. P.H.Rao, IMIS,Bhubaneswar

Journal Proper
1.

2.
3.

4.
5. 6.

Opening Entries Closing Entries Transfer Entries Adjusting Entries Rectification Entries Miscellaneous Entries( capital brought in kind, credit purchase/sale of assets, abnormal loss, writing off bad debts etc.)
Dr. P.H.Rao, IMIS,Bhubaneswar
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Debit Note and Credit Note

Dr. P.H.Rao, IMIS,Bhubaneswar

Illustration on Subsidiary Book

Dr. P.H.Rao, IMIS,Bhubaneswar

10

Purchased on credit from Goyal Mills, Surat Polyster Sarees

Purchase Day Book

Dr. P.H.Rao, IMIS,Bhubaneswar

11

Purchased on credit from Bansal & Co., 2 typewriters

Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

12

Sold on credit to Goyal & Co., 5 polyster Sarees

Sales Day Book

Dr. P.H.Rao, IMIS,Bhubaneswar

13

Returned one type writer (being defective) to Bansal & Co Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

14

Sold on credit two old typewriters to Murti

Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

15

Sold on Cash to Garg & Co., 20 Kota Sarees

Cash Book

Dr. P.H.Rao, IMIS,Bhubaneswar

16

Returned to Goyal Mill,s surat 5 polyster Sarees

Purchase Return Book

Dr. P.H.Rao, IMIS,Bhubaneswar

17

Murli returned on old typewriter

Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

18

Purchased for cash from Kansal & co., 2 chairs

Cash Book

Dr. P.H.Rao, IMIS,Bhubaneswar

19

Purchased on credit from Goyal Mills, Surat Polyster Sarees

Purchase Day Book

Dr. P.H.Rao, IMIS,Bhubaneswar

20

Goyal & Co. became insolvent and paid only 80 paise in a rupee in full and final settlement.

Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

21

Mr. B.K.Jindal (proprietor of Jindal & Co.) took away 2 silk sarees

Journal proper

Dr. P.H.Rao, IMIS,Bhubaneswar

22

A chaeque of Rs3500 received from Mittal & Co. a customer, endorsed in favour of Bansal & Co., a Creditor.

Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

23

Salaries due to employee shyam Rs 1000.

Journal Proper

Dr. P.H.Rao, IMIS,Bhubaneswar

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Dr. P.H.Rao, IMIS,Bhubaneswar

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