Published by: BhumiRaj Timalsina
Published date: 21 Jan 2022
When a business becomes large and performs a large number of transactions daily, it finds the single journal book insufficient to keep a primary record of all the transaction. The task of journalizing all the transaction is troublesome and expensive. It does not provide classified information immediately. It fails to report the total amount of credit purchases and credit sales. The practical system of primary record of the transaction is subsidiary books.
Instead of maintaining a single journal book, a large sized business maintains some journal books. The collective form of all these journal books is known as subsidiary books. They are a subdivision of Journal. They are the set of a primary book in which the transactions of the business are recorded at the first time in a classified way.
"Subsidiary books of accounts are also called books of original entry because all the transactions are recorded originally or in the first instance in this subsidiary book." -Dr. A. N. Agrawala
"Subsidiary records are also known as the book of original entry, as transactions are entered there in the first instance so that they may be subsequently transferred to their respective accounts in the ledger." -J.R. Batliboi
Date |
Particulars |
In. no |
L.F |
Details |
Total |
Ashoj 6 |
Khusboo, Kathmandu 25 pieces of register@ Rs. 60 10 dozens of pencil@ Rs. 15 Less: Trade Discount@ 10% |
1500 150 165 |
1485 |
||
Ashoj 9 |
Sangam, Balaju 20 pieces of board marker@ Rs. 35 15 pieces of duster@ Rs. 10 |
700 150 |
850 |
||
Total |
2335 |
Date |
Particulars |
In. no |
L.F |
Details |
Total |
Jan 4 |
Burning Store, Baneshwor |
1700 |
|||
Jan 16 |
Shining Store, Banepa 2 quintals Basmati rice@ Rs. 2800 25 kgs Mansuli rice @Rs. 22 |
5600 550 |
6150 |
||
Total |
7850 |
Example:
Kartik 29= Sold to Kritika, Basundhara 2 sets 20"LG TV@Rs. 17500 3 sets 21"Sony TV@ Rs. 27500
Kartik 30 = Sold to Anshu, Kathmandu
5 pieces of calculator @Rs. 650 3 sets of Telephone @ Rs. 1050
Date |
Particulars |
In. no |
L. F |
Details |
Total |
Kartik29 |
Kritika, Basundhara 2 sets 20"LG TV@ Rs. 17500 3 sets 21"Sony TV@ Rs. 27500 Less: Trade Discount @12% |
35000 82500 14100 |
103400 |
||
Kartik 30 |
Anshu, Kathmandu 5 pieces of calculator@ Rs. 650 3 sets of telephone @Rs. 1050 |
3250 3150 |
6400 |
||
109800 |
Date |
Particulars |
In. no |
L. F |
Details |
Total |
a. |
Comfort Furniture Center3 Chairs @ Rs. 1300 |
3900 |
|||
b. |
Luxury Furniture Center2 sofa sets @ Rs. 65003 tables @ Rs. 1500 |
13000 4500 |
17500 |
||
Total |
21, 400 |
Importance and Advantages of Subsidiary Book
Subsidiary books are important and advantages to a large- scale trading house due to the following reason:
Invoice:
An invoice is received from the supplier while buying goods and it is sent to the customer while selling goods. It is a statement, which is prepared and sent out by the seller along with the goods to buyer mentioning the details of the goods. It states the items of goods, quantity, unit price, total amount, and discount allowed, expenses incurred on behalf of the buyer and net payable amount. It represents the sale transaction. It serves as the basis for maintaining records in the purchases and sales book.