Subsidiary Books Class 11 Accountancy – Purchase Book, Sales Book, Cash Book Explained

In a busy business, recording every single transaction in the main journal becomes impractical. That is why the journal is divided into specialised sub-divisions called Subsidiary Books (also called Books of Original Entry or Special Journals). Chapter 5 of the Maharashtra State Board Class 11 Accountancy textbook explains each of these books in detail. This guide gives you a complete, exam-ready overview of all subsidiary books with their formats and purposes.

Why Subsidiary Books?

When a business handles hundreds of transactions daily, maintaining a single journal creates several problems:

• It becomes unwieldy and difficult to manage
• Only one person can work on it at a time
• Locating specific transactions becomes time-consuming

Subsidiary Books solve this by dividing transactions into categories, each maintained in a separate book. Only transactions that do not fit into any subsidiary book go into the Journal Proper (or Residual Journal).

Types of Subsidiary Books

1. Purchase Book (Purchase Day Book / Inward Invoice Book)

The Purchase Book records only credit purchases of goods — purchases of merchandise the business trades in, bought on credit. Cash purchases are recorded in the Cash Book, not here. Purchases of fixed assets on credit also go to the Journal Proper, not the Purchase Book.

Format: Date | Particulars | Inward Invoice No. | L.F. | Amount (₹)

The total of the Purchase Book is posted as a single debit entry to the Purchases A/c in the ledger at the end of the period. Each supplier's name is posted individually to their personal account on the credit side.

2. Sales Book (Sales Day Book / Outward Invoice Book)

The Sales Book records only credit sales of goods. Cash sales go to the Cash Book. Sales of fixed assets on credit go to the Journal Proper.

Format: Date | Particulars | Outward Invoice No. | L.F. | Amount (₹)

The total is posted as a single credit to Sales A/c. Each customer's account is individually debited.

3. Purchase Return Book (Return Outward Book)

Records goods returned to suppliers after a credit purchase. When goods purchased on credit are sent back (due to damage, wrong quality, etc.), a Debit Note is raised by the buyer.

Total posted to credit of Purchase Return A/c; individual supplier accounts are debited.

4. Sales Return Book (Return Inward Book)

Records goods returned by customers after a credit sale. When a customer sends goods back, a Credit Note is issued to them by the business.

Total posted to debit of Sales Return A/c; individual customer accounts are credited.

5. Bills Receivable Book

Records all Bills of Exchange and Promissory Notes received from debtors. When a customer accepts a bill, it is recorded here. The total is debited to Bills Receivable A/c; individual drawee accounts are credited.

6. Bills Payable Book

Records all Bills of Exchange accepted by the business (bills drawn by creditors and accepted by the firm). The total is credited to Bills Payable A/c; individual creditor accounts are debited.

The Cash Book — Most Important Subsidiary Book

The Cash Book is a special subsidiary book that serves a dual purpose: it is both a book of original entry AND a ledger account for cash (and bank). It eliminates the need for a separate Cash Account in the ledger.

Types of Cash Books

1. Simple (Single Column) Cash Book
Records only cash receipts and cash payments. Has one amount column each on the debit (receipts) and credit (payments) sides. The debit side always has a higher total — the difference is the closing cash balance.

2. Double Column Cash Book
Has two amount columns on each side — one for Cash and one for Bank (or one for Cash and one for Discount). Transactions affecting both cash and bank (like depositing cash into bank) are shown in both columns.

3. Triple Column Cash Book
Has three columns on each side — Cash, Bank, and Discount. Discount Allowed (Dr.) and Discount Received (Cr.) are non-cash entries. The contra entry (C) is used when cash is deposited into bank or withdrawn from bank.

Contra Entry

A Contra Entry affects both Cash and Bank columns of the same Cash Book. It is marked with "C" in the L.F. column and does not require posting to the ledger.

Example: Cash deposited into bank ₹10,000

• Bank column Dr. ₹10,000 (bank receives)
• Cash column Cr. ₹10,000 (cash goes out)

Both entries are in the same book, so no separate ledger posting is needed.

Petty Cash Book

A Petty Cash Book is maintained by a Petty Cashier to record small, recurring cash expenses that cannot conveniently be paid by cheque — taxi fares, postage, stationery, cleaning charges, and similar petty items.

Imprest System of Petty Cash

Under the Imprest System, the petty cashier receives a fixed amount (the imprest amount) at the start of each period. At the end of the period, the petty cashier submits an account of all expenses. The head cashier then reimburses exactly the amount spent, restoring the petty cash to the original imprest amount.

Advantage: The petty cashier always starts each period with the same fixed amount, making control and audit easy.

Analytical (Columnar) Petty Cash Book

The most practical form — has separate analysis columns for each category of petty expense (Postage, Printing & Stationery, Carriage, Miscellaneous, etc.). At the end of the period, each column total is posted to the respective expense account in the ledger.

Journal Proper (Residual Journal)

The Journal Proper (or Journal Proper/Journal Remaining) records all transactions that do not belong in any subsidiary book:

• Opening entry (recording opening balances)
• Closing entries (transferring nominal account balances to P&L)
• Rectification entries (correcting errors)
• Transfer entries (transferring balances between accounts)
• Purchase/sale of fixed assets on credit
• Cash discount allowed/received (non-cash transactions)

Exam Tips for Subsidiary Books

1. Only credit purchases/sales go into Purchase/Sales Books — never cash transactions.
2. The Purchase Book and Sales Book totals are posted monthly as single entries to their respective accounts.
3. Mark contra entries with "C" in the Cash Book — they do not require separate ledger posting.
4. Identify which type of Cash Book is required from the question — single, double, or triple column.
5. Under the Imprest System, the reimbursement = amount actually spent (not the imprest amount).

Related Posts

• See also: Ledger and Trial Balance Class 11 – Posting, Balancing, and Preparation Guide
• Related: Bank Reconciliation Statement Class 11 – Meaning, Format, and Solved Problems
• Explore: Journal Entries Class 11 Commerce – Step-by-Step Guide with GST Examples

Interactive Practice Idea: Which Subsidiary Book?

Use this as a fast classification quiz. It helps students avoid putting cash transactions into Purchase/Sales Books.

Summary & Study Action Plan

Subsidiary Books are tested in every Class 11 board exam — both as format-based questions and as practical problems requiring posting to ledger. Understanding which transactions go where is the core skill.

📌 Draw the format of each subsidiary book from memory. Then practise one complete problem set per book type. Two weeks of targeted practice and you'll handle any subsidiary books question with confidence.

Frequently Asked Questions (FAQ)

Q1: What is the difference between a Purchase Book and a Cash Book?
The Purchase Book records only credit purchases of goods. The Cash Book records all cash and bank transactions — including cash purchases. They are separate books serving different purposes.

Q2: What is a Contra Entry in the Cash Book?
A contra entry is one that affects both the Cash and Bank columns of the same Cash Book. For example, cash deposited into bank — recorded as Bank Dr. and Cash Cr. — is marked "C" and requires no ledger posting.

Q3: What is the Imprest System of Petty Cash?
Under the Imprest System, the petty cashier starts each period with a fixed amount. At the end of the period, the head cashier reimburses the exact amount spent, restoring the fixed balance.

Q4: What types of transactions go into the Journal Proper?
Opening entries, closing entries, rectification entries, transfer entries, purchase/sale of fixed assets on credit, and all transactions not covered by any other subsidiary book.

Q5: Why is the Cash Book both a journal and a ledger?
Because transactions are recorded in it for the first time (making it a book of original entry) and it also serves as the Cash Account/Bank Account in the ledger — no separate cash ledger account is needed.

Q6: Are subsidiary books questions asked in board exams?
Yes. Preparing Purchase Books, Sales Books, Cash Books, and Petty Cash Books — including posting to ledger — are standard high-mark questions in Maharashtra State Board Class 11 Accountancy exams.