Subsidiary Books - Advantages

Subsidiary Books 

Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be difficult and involve a lot of clerical work.

This is avoided by sub-dividing the journal into various subsidiary journals or books. The subdivisions of journal into various subsidiary journals for recording transactions of similar nature are called as ‘Subsidiary Books.

                                    Advantages of Subsidiary Books

Subsidiary Books helps to save time and labor by recording a similar type of transactions in a separate book. These books are books of original entry. It also helps to maintain accounts and thus avoids the necessity of journal entries. In the normal track of business, a majority of transactions are either related to sales, purchases, or cash. This is avoided by sub-dividing the journal into a variety of subsidiary journals or books.

The following are the advantages of Subsidiary Books:

  • Effectiveness
  • Division of Labour
  • Division of Work
  • Prevents Errors and Frauds
  • Saving the time
  • Easy Reference
  • Easy Postings


                 The division of labor helps the decrease in workload, saving in time and stationery. It also gives advantages to the area leading to effectiveness. It becomes easy to entrance the comprehensive information relating to an exacting transaction. Thus, the accounting work will be done proficiently.

Division of Labour:

             The division of journal, resulting in a division of work, ensures more clerks working independently in recording original entries in the subsidiary books. It increases the efficiency of personnel as they perform the same activities daily.

Division of Work:

              As journal is sub-divided, the work will be sub-divided and different persons can work on different books at the same time and the work can be speedily completed.

Prevents Errors and Frauds:

            Internal check becomes more effective as the work can be divided in such a manner that the work of one person is automatically checked by another person. With the use of internal check, the possibility of occurrence of errors or fraud may be avoided or minimised.

Saving the time:

               Recording in a subsidiary book saves a lot of time and office hours. It helps to save time and labor by recording comparable types of transactions in a detached book. Various accounting processes can be undertaken at the same time because of the use of a number of books.  This helps decrease the time which takes to record a transaction. This will guide to the work being finished hastily. This will save the time of the employees and accountants.

Easy Reference:

                         When transactions of all types are in the same subsidiary book it becomes easy to search for them. Whenever any information is needed, we directly refer the subsidiary book to get said information.

Easy postings:

             Subsidiary books consequence substantial saving of clerical labor in postings and narration. It helps to preserve accounts and thus avoids the requirement of journal entries. Posting from the subsidiary books are made at convenient intervals depending upon the nature of the business.

So, in this post we have seen advantages of subsidiary Books, with this have now clear information regarding meaning, types and advantages of subsidiary Books. Soon will come back with other topic.

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