Subsidiary books are the journals in which special classes of transactions are recorded. As the size of business grew the volume of transactions of all the business houses rose alarmingly and it was realized that General journal was inadequate as the only book of original entry. It was found to be convenient and advantageous to have different books of original entries (subsidiary) for different activities of the business like purchases, sales, purchases returns and sales returns etc.
The importance of keeping a subsidiary book or special journal are:
1. Specific types of transactions are recorded in each special journal.
2. Only the periodical totals are posted in group a. counts like purchases or sales account.
3. Ruling is modified as the requirements of the business e.g., additional columns for excise duty or sales tax may be provided.
4. Optional as per the desire of the business.
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