Question

Sub-division of journal is known as _______ book.

• A. Subsidiary
• B. Purchase return
• C. Purchase
• D. Journal proper

Answer 1

The correct option is A Subsidiary

Subsidiary books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one journal and posting them into various ledger accounts will be very difficult and involves a lot of clerical work. This is avoided by sub-dividing the journal into various subsidiary journals or books. The subdivisions of journal into various subsidiary journals for recording transactions of similar nature are called as "Subsidiary Books". The different types of subsidiary books are:

1. Purchase Day Book

2. Sales Day Book

3. Purchases Returns Book

4. Sales Returns Book

5. Bills Receivable Book

6. Bills Payable Bok

7. Cash Book

8. Journal Proper