October 09, 2018

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Subsidiary Books (Cash Book)

Subsidiary Books (Cash Book)

Transactions can be classified and grouped
conveniently according to their nature, as some transactions are usually
of repetitive in nature. Generally, transactions are of two types:
Cash and Credit. Cash transactions can be grouped in one category
whereas credit transactions can be grouped in another category. Thus,
in practice, the main journal is sub-divided in such a way that a
separate book is used for each category or group of transactions
which are repetitive and sufficiently large in number.
Each one of the subsidiary books is a special journal and a
book of original or prime entry. Though the usual type of journal
entries are not passed in these sub-divided journals, the double entry
principles of accounting are strictly followed

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