A small business may be able to record all transactions in single Journal but as the business
expands the number of transactions becomes so large, that the Journal is required to be sub-divided
into Special Journals which are called Subsidiary Books.
The sub division of Journal on the basis of nature of transaction is known as
Subsidiary Books. These books are also called as Books of Original entries or Prime entries because
the transactions are first recorded in Subsidiary Books and then posted in the Ledger.
Following are the important Subsidiary Books.
1) Cash Book.
2) Petty Cash Book.
3) Purchase Book
4) Purchase Return Books (Return Outward Book)
5) Sales Book
6) Sales Return Book (Return Inward Book)
7) Journal Proper