In Unit 2 you learnt that all business transactions are
first recorded in the journal and then posted into ledger. In practice, the
number of transactions is so large that it becomes difficult to record all of
them in one book of prime entry. Hence, the journal is sub-divided into a
number of special journals called Subsidiary Books. Each book is used for
recording transactions ‘of one category only. For example, Cash Book is used
for recording all cash transactions, Purchases Book is used for recording all
credit purchases of goods, and Sales Book is used for recording all credit
sales of goods, and so on. This enables us to divide the work among different
persons and ensure prompt recording of transactions,
Please don't spam comments Thank You.