1. Special Purpose Books (Subsidiary Books)
Subdivisions of Journal for recording frequent transactions of similar nature.
- Cash Book: For recording all cash/bank receipts and payments.
- Purchases Book: For credit purchase of goods.
- Sales Book: For credit sale of goods.
- Purchases Return Book: For return of goods purchased on credit.
- Sales Return Book: For return of goods sold on credit.
- Journal Proper: For transactions not recorded in any other book.
2. Cash Book
Acts as both Journal and Ledger.
- Single Column: Only Cash column.
- Double Column: Cash and Bank columns.
- Petty Cash Book: For small expenses (Imprest System).
Contra Entry: Transactions involving both Cash and Bank (e.g., Cash deposited into
Bank). Denoted by 'C'.
3. Other Subsidiary Books
Note: Cash purchases/sales and Asset purchases/sales are NOT recorded in Purchase/Sales Books.