Question

What are special purpose books?

Answer 1

Business transactions are large in number and difficult to record. A Journal is sub-divided for quick, efficient and accurate recording of the business transactions into a number of subsidiary books or special purpose books like, sales book, purchases book, cashbook, purchase return, sales return, etc. which are maintained for those transactions that are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants as per the nature of transactions.