What is Sub-division of Journal? - Vidyadip

Question

What is Sub-division of Journal?

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Answer

When the size of the business grows and the number of transactions become very large, it is no longer possible to record all transactions in one Journal only. As such, the Journal is sub-divided into a number of Special Journal These special journals are also known as Sub-division of Journal.
Subsidiary books or the books of original entry Each subsidiary book is meant for recording all the transactions of a similar nature. For example, all cash transactions may be recorded in one book, all credit purchase transactions in another book and all credit sales transactions in yet another book, and so on. Thus, the subsidiary books may be defined as books where the transactions are entered first and then ledger accounts are prepared on their basis. Following subsidiary books are most commonly.

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