Special Purpose Books 1 Cash Book — Account STD 11 Commerce — Question

Business transactions are numerous and it becomes difficult to record all the transactions in one book of primary entry, i.e., Journal Book. For example, in a business, many transactions may relate to receipts and payments of cash, sale of goods and their purchase. It is convenient to maintain a separate book for each such class of transactions--one to record cash transactions, another to record credit purchase of goods and yet another to record credit sale of goods. Book of this type is called a book of original entry or primary entry-it is a special form of Journal, a sub-division of it.
Advantages of Subsidiary Books
The use of subsidiary books has following advantages:

1. Division of Work: Since in place of one Journal, Subsidiary Books are maintained, accounting work can be divided among a number of persons.
2. Specialisation and Efficiency: When the same work is handled by a particular person for a considerable time, he acquires knowledge and expertise in it. He Become more efficient in handling it. Thus, accounting is done more efficiently.
3. Saving of Time: Various accounting processes can be undertaken simultaneously because of the use of number of books. Thus, it leads to completing the work timely.
4. Availability of Information: Since a separate book is maintained for each class of transactions, information relating to each class is available at one place.
5. Facility in Checking: In case, the Trial Balance does not agree, locating the error or errors is facilitated by the existence of separate books. Since the number of transactions is less in each Subsidiary Book as compared to only one Journal, is easy to locate the errors.
6. Responsibility: Division of work results in assigning a particular job to a particular person. If an error is committed in recording, responsibility can be easily fixed.