Accounting Sub Journals and Cash Book

May 23, 2018 | By admin4u | Filed in: Uncategorized.

The accounting procedure for recording information consists of two steps, namely logging and posting. As a result, each business has to keep a journal (original or first-entry books) and a general ledger (ledger). Thus, the accounting system originally plans to record all transactions first in the book of the original record, that is, as a journal, and all transactions recorded in the journal must be included in the main book book, that is, in the main book. Subsequently, it was found that the work was tremendous that each transaction was recorded in a journal in the journal, and both entries were included in the two books in two separate accounts. The process took more time and resulted in higher site costs.

It is natural that most transactions in all businesses are related to cash-related revenues and payments; purchase of goods; sale of goods, etc. It was found convenient and economical to keep a separate book on each group of transactions. Each separate book that records transactions in a particular class is the book of the original or the most important entry. This is also known as a sub-journal or an outline. The system under which similar transactions are included in the relevant subsidiary book and on which the book keeping is described is known as the "accounting practice system". This system reduces work and transactions are not personal accounts, ie sales invoices, purchase invoices, etc. It's time to keep up-to-date and get the delivery of your deliveries, not the number of transactions. However, this system also complies with the basic rules of the dual entry system.

Generally, the following subsidiaries are accounted for in business:

(1) Cash: Revenue and Cash Payments of Records;

(2) Book of Purchases: records the granting of goods for conversion to a sale or a finished product;

(3) Returning Book: Supplier Returns Goods for Multiple Reasons [19659002] (4) Sales Book: It records the credit sales of commodities carried out by the business;

(5) Returning Book: Records the return of goods to customers; (vi) Debtors: It records the proceeds of various parties' bills, bonds and chocolates;

(6) Book of records: records the issuance of invoices, penalties and chocolates of different bills: (1) Time savings result in (a) the possibility of recording the transactions at the same time in the various book-entry companies of the subsidiaries; b) publishing the periodic publication

(2) Provides information about each group of transactions.

(3) During the creation of the experimental balance, control is easier because the books can be performed by many, different people. In fact, the largest number of transactions in a business should apply to money and bank. This is because all transactions ultimately result in cash transactions. Now that every cash transaction is recorded in the journal, you will have a huge amount of work for each transaction to debit or credit your cash or bank account. Therefore, it is convenient to have a separate book, the cash register, to record such transactions. Cash maintenance avoids the need to book cash and bank accounts. This book allows us to know the balance of cash in hand and in bank at any time.

Cash consists of cash and bank accounts, which originate from the main book and are maintained separately; so it is a major substitute for cash and bank accounts. This is also the book of the original entry, because cash and bank transactions are not included in other supplementary books.

Cash Register Type

cash book that any business can use depends on its nature and requirements. One of the following may be one of the following:

(1) One Pillar Cash Bank (Cash Pillar)

(2) Double Pillar Cash Collection (Cash and Discount Pillar)

(3) (Cash, Discount and Bank Columns)

(4) Bank Cash Card (Bank and Preferred Columns)

Generally, each business uses any of the above-mentioned cash types under the "Small Checkbook Memorandum"

The difference between cash and cash book

In fact, cash accounting is a perfect substitute for a cash account. In both cases, cash transactions are recorded in the order in which the event occurs. Cash Balance at any time can be determined by balancing both desired days. However, there are differences between the two below:

Cash Account

1. There is an account in the bookkeeping.

2nd The cash account is part of the invoice. The cash account is open in the bookkeeping in which the posting is made out of some of the books in the original entry, that is, the diary

3. In the cash account, publication is not followed by narrative.

4th It contains only one item of money and bank transaction


1. A separate accounting book forming part of the accounting system

2. Cash withdrawal records entries directly from transactions and does not require a first-time book

. Cash book entry is followed by narration.

4th The transaction records the double entry in both cash and bank columns.

Source by Anil Kumar Gupta

Leave a Reply

Your email address will not be published. Required fields are marked *