News Subsidiary Books - Meaning, Wages Together With Types
Most of the big companies are recording the concern transactions inwards i magazine as well as the posting of the same to the concerned ledger accounts are real hard tasks as well as which require to a greater extent than clerical labour also. For avoiding such variety of difficulties nigh of the concern organizations are subdividing the magazine inwards to subsidiary journals or subsidiary books. Subsidiary books are those books of master copy entry inwards which similar nature of transactions are recording inwards a chronological order.
Meaning
There are numerous transactions which hap then many times inwards a day. It is inadequate as well as inconvenient to tape the transaction inwards the volume of master copy entry i.e. journal. Every transaction recorded inwards magazine becomes thick, bulky, dull as well as consumes to a greater extent than time, labour as well as money. So the transactions which are of repetitive nature are recorded inwards a carve upwardly volume through special journal. Such carve upwardly volume of master copy entry, maintained for recording the similar as well as repetitive types of transactions is known equally subsidiary books. Also known equally sub-journal or sub- partitioning of journal, this volume includes buy book, sales book, buy render book, sales render volume as well as cash book.
Advantages of subsidiary book
The next are the advantages of subsidiary book:
1. It enables the partitioning of last with accounting personnel past times assigning with carve upwardly books as well as it increases efficiency of personnel equally they perform same activities daily.
2. It helps to salve fourth dimension as well as labor past times recording similar type of transactions inwards a carve upwardly book.
3. It becomes tardily to access the detailed data relating to a exceptional transaction equally the transactions relating to i caput are recorded inwards a carve upwardly book.
4. It helps to install internal cheque scheme equally the subsidiary volume maintained past times a clerk is automatically checked past times about other clerk.
5. It helps to hold accounts as well as therefore avoids the necessity of magazine entries.
6. The beingness of carve upwardly books assistance inwards the detection of errors speedily inwards representative of disagreement of case balance.
Kinds of Subsidiary Books
There are dissimilar kinds of subsidiary books which includes:
1. Purchase twenty-four hours book
2. Sales twenty-four hours book
3. Purchase returns book
4. Sales returns book
5. Bills receivable books
6. Bills payable books
7. Cash book.
1. Purchase twenty-four hours book
Purchase twenty-four hours volume is used for recording credit buy of goods only. This volition non tape whatever cash buy or credit buy of whatever assets. The term goods way all the commodities as well as services inwards which the companionship deals inwards twenty-four hours to twenty-four hours activities. The training of buy twenty-four hours volume involves the Date column, Particulars column, Invoice set out column, Ledger folio column, inner amount column as well as Amount column.
2. Sales twenty-four hours book
Sales twenty-four hours volume is mainly used for recording credit sales of goods as well as services inwards an organization. This volition non tape whatever cash sales or assets sales. The ruling for the training of this volume is same equally similar Purchase twenty-four hours book. This involves the Date column, Particulars column, Invoice set out column, Ledger folio column, inner amount column as well as Amount column.
3. Purchase returns book
This is maintained to tape the transactions of goods returned to the supplier when buy on credit. The ruling of the training of buy render volume or returns outward volume involves Date, Particulars, Debit notation number, Ledger folio as well as amount column.
4. Sales returns book
This volume is used to tape the goods returned past times the client the goods sold on credit. The ruling of the training of Sales render volume or returns inward volume involves Date, Particulars, credit notation number, Ledger folio as well as amount column.
5. Bills receivable books
It is used to tape the transactions when the bills received from the client for credit sales. This provides a medium for posting bills receivable transaction. The training of this volume involves Date when received, Drawer, Acceptor, Where payable, engagement of bill, term, due engagement ledger folio, Amount, remarks columns.
6. Bills payable books
This is used to tape the acceptances given to the suppliers for credit purchase. The training of bills payable volume involves Date of acceptance, giver, payee, Where payable, engagement of bill, term, due date, ledger folio, Amount, remarks columns.
7. Cash book
The cash volume is used to tape all the receipts as well as payments of cash. For the training of cash volume in that place are dissimilar rules are available according to the nature of business. The dissimilar forms of cash volume are equally follows:
A) Simple Cash book: This is the uncomplicated sort of cash book.
B) Two column cash book: This type of cash volume stimulate got 2 columns similar cash column as well as discount column.
C) Three column cash book: This involves iii columns such equally Bank column, cash column as well as discount column.
D) Petty cash book: This is used to tape fiddling expenses similar postage, cartage, printing as well as stationery etc inwards the twenty-four hours to twenty-four hours concern activities.