📘 Subsidiary Books Summary * Definition: Subsidiary Books are used to record similar types of transactions. * Purpose: They prevent a single book from becoming confusing. They allow for simple and systematic recordkeeping. * Concept: Instead of recording everything in one place, a business keeps different books for different purposes (e.g., one for purchases, one for sales, one for cash). * 8 Main Types: * Purchase Book: Records credit purchases of goods. * Sales Book: Records credit sales of goods. * Purchase Return Book (Return Outward): Records goods returned to suppliers. * Sales Return Book (Return Inward): Records goods returned by customers. * Cash Book: Records all cash receipts and payments (acts as a Journal + Ledger for cash). * Bills Receivable Book: Records bills/promissory notes received from customers. * Bills Payable Book: Records bills/promissory notes given to suppliers. * Journal Proper: Records rare or special transactions (e.g., depreciation, goods lost by fire).

1. Subsidiary
Books and it’s
types
Presented by :
Dibyaranjan, Pragyan & Swagatika
Innovation-The Business School
Date: 10th
-11th
October 2025

2. INTRODUCTION
• Businesses record many transactions daily.
• Writing everything in one book is
confusing.
• To make it simple → we use Subsidiary
Books.
• Definition: These are books used to record
similar types of transactions.
• In simple words:
• Instead of writing all transactions in one
book, we keep different books for different
purposes.

3. Why We Need Subsidiary Books?
Saves time
and effort ⏰
Reduces
mistakes ❌
Easy to find
information
🔍
Makes work
systematic
and
organized 🧾

4. EXAMPLE
• Imagine you run a small shop. Every day, you sell
goods, buy materials, pay bills, and receive money.If
you record everything in one big book, it’ll soon
become messy and confusing .
• To stay organized, you keep separate notebooks:
• One for purchases
• One for sales
• One for cash
• That’s how Subsidiary Books work
• That’s why accountants divide the work into different
small books — each book for a particular type of
transaction.These are called Subsidiary Books.

5. Classification Overview
There are 8 main types of Subsidiary Books
Purchase Book
1 ️
1️⃣
Sales Book
2️⃣
Purchase Return Book
3 ️
3️⃣
Sales Return Book
4️⃣
Cash Book
5 ️
5️⃣
Bills Receivable Book
6️⃣
Bills Payable Book
7 ️
7️⃣
Journal Proper
8️⃣

6. 1. Purchase Book
• Records credit purchases of goods.
• Example: Buy goods worth 10,000 on credit from Ramesh
₹
Traders
Format
Date
Particular
s
Invoice
No.
Ledger
Folio
(L.F.)
Details
Amoun
t

7. 2. Sales Book
• Records credit sales of goods.
• Example: Sell goods worth 15,000 on credit to Priya Stores.
₹
• Helps to know total sales in a period.
Date
Particular
s
Invoice
No.
L.
F.
Details
Amoun
t ₹

8. 3. Purchase Return
Book
• Used when goods bought on credit are returned.
• Example: Returned defective pens to Ramesh Traders.
• Also known as Return Outward Book.
Date Particular
s
Debit
Note No.
L.
F.
Details Amount
₹

9. 4. Sales Return Book
• Used when customers return goods sold on credit.
• Example: Priya Stores returned damaged books worth 2,000.
₹
• Also called Return Inward Book.
Date Particular
s
Credit
Note
No.
L.
F.
Details Amoun
t ₹

10. 5. Cash Book
• Records all cash receipts and payments.
• Example: Receive 5,000 from customer, pay
₹
2,000 for rent.
₹
• Acts as both Journal + Ledger for cash transactions.

11. 6. Bills Receivable
Book
• When business receives
bills/promissory notes from
customers.
• Example: Priya gives a bill for
10,000 payable after 30 days.
₹
Date of
receipt
of bill
From
whom
bill is
received
Term
of the
bill
Due
date of
the bill
L.
F.
Amoun
t

12. 7. Bills Payable Book
• When business gives a
bill/promissory note to a supplier.
• Example: You promise to pay
Ramesh 8,000 after one month.
₹
Date of
acceptance of
bill
To whom
acceptance
is given
Term
of the
bill
Due
date of
the bill
L.
F.
Amount
of the
bill

13. 8. Journal
Proper
• Records rare or special transactions:
• Goods lost by fire 🔥
• Depreciation 💸
• Owner takes goods for personal use 👤

14. CONCLUSION
• Subsidiary Books = Smart
recordkeeping
• Saves time, reduces errors, keeps
accounts neat.
• Simple, Systematic, and
Reliable 📘
• > “Accounting becomes easy
when work is divided wisely.”