DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Names : R. ROHINI
Designation : Lecturer
Branch : D.C.C.P.
Institute : S.G.M. Government Polytechnic,
Abdullapurmet, R.R.Dist
Year/Semester : I Year
Subject : Accountancy-I
Subject Code : CCP-102
Topic : Subsidiary Books
Duration : 50 Minutes
Sub-Topic : Need for Sub-division of Journals
Teaching Aids : PPT and Animations
CCP102.36 1
Recap

In the previous class you have learnt

 Preparation of Ledger accounts after recording
journal entries
 Posting entries in relevant Ledger accounts
 Balancing of each Ledger account

CCP102.36 2
Objectives
On completion of this period, you would be able

to :

 Understand the limitations of Journal

 Understand the need for Sub-division of
Journal
 Listing the types of Subsidiary Journals

CCP102.36 3
Structure of the lesson
 Meaning of Journal
 Need for Sub-division of Journal
 Limitations of Journal
 Types of Subsidiary Journals
 Summary
 Quiz and Questions

CCP102.36 4
Which is the first book of entry?

JOURNAL

CCP102.36 5
Journal

Journal is the
 Book of Prime Entry

 Day-to-day transactions entered

CCP102.36 6
Why subsidiary books?

 One Journal book sufficient to enter few

transactions
 What if there are100s of transactions

CCP102.36 7
What if I have to find

 Total Purchases
 Total Sales
 Cash Balance
 Bank Balance, etc

CCP102.36 8
Limitations of Journal

 One Journal book becomes too bulky

 Difficult to enter all transactions
 Getting periodical details not easy
 Difficult to know Tax details
 Opening ledgers for similar transactions

CCP102.36 9
Then how to handle such bulky book?

Divide into separate Books

Each book is called ‘Subsidiary book’

CCP102.36 10
Types of Subsidiary Books

1. Purchases Book
2. Purchase Returns Book
3. Sales Book
4. Sales Returns Book
5. Bills Receivable Book
6. Bills Payable Book
7. Cash Book
8. Journal Proper
CCP102.36 11
Summary
 One Journal book suitable for few transactions
 For many transactions not convenient
 Divide the Journal Book into groups
 Open one book for each group
 Each book is called Subsidiary Book

CCP102.36 12
Quiz
1. Original Book of entry is
a) Journal
b) Ledger
c) Subsidiary Journal
d) All of the above
2. If the transactions are too many, use
a) One Journal
b) Two Journals
c) Subsidiary Books
d) All of the above
CCP102.36 13
3. All Credit Purchases are entered into
a) Cash Book
b) Sales Book
c) Purchases Book
d) None of the above

4. Goods returned by customers entered into

a) Purchase Returns Book
b) Sales Returns book
c) Journal Proper
d) All of the above
CCP102.36 14
Frequently asked questions

1. State the need for sub-division of Journal

2. List the different types of Subsidiary Journals

CCP102.36 15
Assignment

Answer the following questions:

1. State the need for sub-division of Journal.
2. List the different types of Subsidiary Journals.

CCP102.36 16
THANK YOU

CCP102.36 17