What Is Subsidiary Book?

Are you curious to know what is subsidiary book? You have come to the right place as I am going to tell you everything about subsidiary book in a very simple explanation. Without further discussion let’s begin to know what is subsidiary book?

In the world of accounting, maintaining organized and accurate records is paramount. Subsidiary books, also known as special journals, are a fundamental component of accounting systems used by businesses of all sizes. These books serve as a systematic way to record specific types of transactions efficiently. In this blog, we will explore what subsidiary books are, their various types, and their significance in modern accounting practices.

What Is Subsidiary Book?

Subsidiary books are specialized accounting journals used to record transactions of a particular type. Rather than recording all transactions in a single general ledger, businesses and organizations use subsidiary books to categorize and organize transactions more effectively. This approach simplifies the accounting process and enhances accuracy in financial reporting.

Types Of Subsidiary Books

  1. Cash Book: The cash book is perhaps the most crucial subsidiary book. It records all cash transactions, including both cash receipts and cash payments. It provides an accurate and up-to-date record of a company’s cash position.
  2. Sales Journal: The sales journal, also known as the sales daybook, is used to record all credit sales made by a business. It typically includes details such as the customer’s name, date of sale, invoice number, and amount of the sale.
  3. Purchase Journal: The purchase journal, or purchase daybook, records all credit purchases made by a business. It includes information like the supplier’s name, date of purchase, invoice number, and purchase amount.
  4. Sales Return Book: Also known as the sales return daybook or returns outwards journal, this subsidiary book records goods returned by customers. It helps businesses track and manage returns accurately.
  5. Purchase Return Book: The purchase return book, or returns inwards journal, records goods returned to suppliers. It allows businesses to keep track of returns and manage accounts payable effectively.
  6. Bills Receivable Book: This subsidiary book is used to record all bills receivable, which are promissory notes or written promises to pay at a future date. It helps track payments due from customers.
  7. Bills Payable Book: The bills payable book records all bills payable, which are written obligations to pay others. It helps businesses keep track of their outstanding debts and liabilities.

Significance Of Subsidiary Books

  1. Improved Organization: Subsidiary books help businesses organize and categorize their transactions, making it easier to locate specific information when needed.
  2. Accuracy and Efficiency: By recording transactions in specialized books, businesses reduce the risk of errors and omissions. This systematic approach enhances the overall accuracy of financial records.
  3. Quick Reference: Subsidiary books provide a quick and convenient way to access specific transaction details without searching through a general ledger.
  4. Streamlined Reporting: When it’s time to prepare financial statements, subsidiary books provide a comprehensive summary of transactions, simplifying the reporting process.
  5. Enhanced Control: Subsidiary books facilitate better control over various aspects of financial management, such as cash flow, accounts receivable, and accounts payable.


Subsidiary books are the foundation of organized and accurate accounting systems. They streamline the recording of transactions, improve efficiency, and enhance the overall accuracy of financial records. For businesses and organizations striving to maintain sound financial management practices, subsidiary books are an indispensable tool that ensures the integrity and reliability of their accounting data.


What Do You Mean By Subsidiary Books?

Subsidiary Books are books of Original Entry. They are also known as Day Book or special journals. We record transactions of similar nature are in Subsidiary Books. They are helpful in overcoming the limitations of journal book or journal entries. In this article, we will see different types of Subsidiary Books.

What Is Subsidiary Book In Accounting Class 11?

Answer: Subsidiary Books are the sub divisions of a Journal. These books are meant for recording the transactions of a similar nature in a separate book. When there are many transactions, the Journal is sub-divided into subsidiary books to record such voluminous transactions and events in one single book.

What Is The Example Of Subsidiary Book?

Ans: The seven subsidiary books in accounting are Purchase Book, Sales Book, Purchases Return Book, Sales Return Book, Bills Receivable Book, Bills Payable Book, and Journal Proper.

What Is Subsidiary Books Cash Book?

1. Special Purpose Books or subsidiary books:- Sub-division of the Journal into various books recording transactions of similar nature are called subsidiary books. 2. Cash Book – Cash Book is a Special Purpose Subsidiary Book or Journal in which cash receipts and cash payments are recorded.

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What Is Subsidiary Book

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