Subsidiary books are those books into which a journal is subdivided because of its limitations.
Previously we learnt that the first entry for recording various day to day transactions is known as journal entry. However, a journal has some limitations. Owing to these limitations, as the number of transactions increase, entering all the transactions in one book becomes difficult and the journal becomes voluminous and difficult to manage.
In order to overcome these limitations, the journal is subdivided into subsidiary books. In case of subsidiary books, specific transactions are noted in specific books. Subsidiary books are also known as Day Books.
In this chapter:
+ Meaning and Types of subsidiary books
+ Advantages of subsidiary books
+ Subsidiary books for goods