Short Notes — Ch 8 Subsidiary Books
⚡ Ch 8 — Subsidiary Books
FAA 2022 = the real Finance Account Assistant paper, 6 Mar 2022 — FAA-2022-paper 2024 = the FAA paper of 28 Jan 2024 — 2024-paper PAA 2020 = the Panchayat Accounts Assistant paper of 10 Nov 2020 — a different post, kept as practice, with the official JKSSB key. Its questions were previously mislabelled "2022" and duplicated under two booklet numberings; de-duplicated 1 Sep 2026. See Four-Paper-Comparison.
PYQ: 0 direct questions (but it underpins PAA 2020·Q107 — goods given as charity → Purchases A/c). MCQ bank: 15 questions (Q330–344). Tier D — skim chapter. Learn the 8 books and the "what goes where" rule; don't over-invest.
1️⃣ The core
When one journal becomes unmanageable, it is sub-divided into subsidiary books — each holding transactions of one kind, in chronological order.
They are called: Books of prime entry · Books of original entry · Subsidiary books.
Journal (original) → Ledger (final). Subsidiary books ARE the journal, split up.
2️⃣ ⭐ The 8 Subsidiary Books — what each records
| Book | Records | ⚠️ Does NOT record |
|---|---|---|
| Cash Book | all cash & bank receipts/payments | credit transactions |
| Purchases Day Book | credit purchases of GOODS only | cash purchases · assets on credit |
| Sales Day Book | credit sales of GOODS only | cash sales · sale of assets |
| Purchases Returns Book (Returns Outward) | goods returned to suppliers (bought on credit) | — |
| Sales Returns Book (Returns Inward) | goods returned by customers (sold on credit) | — |
| Bills Receivable Book | bills received from customers | — |
| Bills Payable Book | acceptances given to suppliers | — |
| ⭐ Journal Proper | everything else — credit purchase/sale of assets, opening entry, closing entries, adjusting & rectifying entries | — |
Purchases/Sales books = GOODS on CREDIT only.
- Bought a machine on credit? → Journal Proper (it's an asset, not goods)
- Cash purchase or sale? → Cash Book
- Everything that fits nowhere else → Journal Proper
3️⃣ Posting from subsidiary books
| Book | Periodic total goes to |
|---|---|
| Purchases Book | DEBIT side of the Purchases Account |
| Sales Book | CREDIT side of the Sales Account |
| Purchases Returns Book | Credit of Purchases Returns A/c |
| Sales Returns Book | Debit of Sales Returns A/c |
Source documents (vouchers):
- Sales Book → Invoice / bill issued
- Purchases Book → Invoice received
- Purchases Returns → Debit note issued
- Sales Returns → Credit note issued
4️⃣ Quick Revision Table
| Point | Answer |
|---|---|
| Subsidiary books are also called | Books of prime / original entry |
| Ledger is called | Principal book / book of secondary entry |
| Credit purchase of fixed assets goes in | Journal Proper |
| Closing entries are recorded in | Journal Proper |
| Purchases book total → | debit of Purchases A/c |
| Sales book total → | credit of Sales A/c |
| Source document for the Sales Book | Invoice |
| Cash Book is a | both a subsidiary book and a principal book |
| If a simple cash book is kept, you need not maintain | Cash Account in the ledger |
🎯 PYQs from this chapter
⭐ From the REAL FAA 2022 paper (6 Mar 2022) — added 1 Sep 2026. See FAA-2022-paper.
FAA 2022 · Q56 — In case of an overcharge, which document is issued?
a) Debit note b) Credit note c) Bank note d) Ledger note → Ans: A and B (double-keyed) ⚠️ The stem never says who acts. The buyer issues a debit note; the seller issues a credit note. JKSSB accepted both — know both directions.
5️⃣ High-frequency MCQ traps
| MCQ | Point |
|---|---|
| Q330 | Purchases book = credit purchases of goods only |
| Q331 | Total → debit side of Purchases A/c |
| Q332 | Sales book = credit sales of goods only |
| Q333 | Total → credit of Sales A/c |
| Q334 / Q335 | Returns books — goods returned on credit |
| Q336 | ⭐ Fixed assets bought on credit → Journal Proper |
| Q337 | Source document for sales book = Invoice |
| Q339 | ⭐ Closing entries → Journal Proper |
| Q340 | Cash book = both subsidiary and principal book |
| Q342 | With a simple cash book, no Cash A/c needed in the ledger |
6️⃣ If you remember nothing else
8 books: Cash · Purchases · Sales · Purchases Returns · Sales Returns · Bills Receivable · Bills Payable · Journal Proper Purchases/Sales books = GOODS on CREDIT only · assets on credit + closing entries → Journal Proper · Purchases total → debit, Sales total → credit · Cash Book is both subsidiary AND principal
🔗 Related
- Full notes: L-8-SUBSIDIARY BOOKS · MCQs Q330–344 in MCQs
- Prev: SN-7-Ledger-Accounts · Next: SN-9-Cash-Book
