Question

State the need for sub-division in a journal.

Answer 1

When the size of the business is large then it is a tedious and time consuming job to record all the transactions in the journal. Because of this the journal is sub-divided into a number of books of original entry as follows:
(1) Cash book

(2) Other day books
(a) Purchases (journal books)
(b) Sales (journal ) nook
(c) Purchases return (journal) book
(d) Sales returns (Journal ) book
(e) Bill receivable (journal book)
(f) Bills payable (journal book)

(3) Journal proper