Video Transcript 8

As we understood what is a sub-journal or subsidiary book or books of Orginal entry, let us see now the classification of sub-journals

First one is cash book,

Second one is Purchased Book

Next is Sales book

Next we get Purchases Return and sales return book

Next is Bills Payable and Bills Receivalbles

Finally we are having Journal Proper

we discuss about each and every subsidiary book seperately in detail, so first let us talk about Cash Book.

In cash book the first important point to be noted is we record only cash transactions in cash book, that means we don't record any credit or debit transactions in cash book

For example if you purchased or sold goods for cash yes we record it in cash book

If you purchased or sold goods for credit then we don't record that in cash book that is recorded in other sub journals which we discuss in coming classes

So remember we record only cash transactions in Cash book

The next important point about Cash book is Cash book acts ar both Journal and Ledger

This is important to remeber as this has been asked so many times in written test in interviews.

Remaining all subsidiary books are only Journals
 If you take purchases book its only journal the next one and next one these are all only Journals

The only Subsidiary book which is both Journal and Ledger is nothing but Cash Book, So remember this,

Now let us see the types of Cash book