Books of Accounts

Subsidiary Books

Subsidiary books simplify recording frequent, similar transactions. They keep the main ledger cleaner * Example: A Purchase Book tracks purchases from multiple suppliers. Instead of individual ledger entries for each purchase, only one summary entry is made monthly. The Purchase Book holds a detailed breakdown. * Other examples are sales Books and transport books (e.g., for a fuel delivery company tracking invoices from transport operators). * Benefit: Handles high transaction volumes efficiently (like 1000 fuel deliveries/day) without cluttering the main ledger

Ledger

A ledger is a register keeping details of all the accounts of the business. Ledger accounts have debit (left) and credit (right) sides.

Subsidiary Ledger

• General Ledger GL The GL contains summary accounts—Sundry Creditors and Sundry Debtors—representing the total amounts owed to suppliers and owed by customers, respectively.
• The subsidiary ledgers provide detailed information supporting the summary balances in the GL's Sundry Creditor and Sundry Debtor accounts. For example, the Sundry Creditors Ledger shows the amounts owed to each supplier, while the Sundry Creditors account in the GL shows the total amount owed to all suppliers.

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