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In the previous chapter, you learnt that all the business transactions are first recorded in the journal and then they are posted in the ledger accounts. This is possible only incase of a small business entity. As the business expands and the number of transactions becomes large, it may become cumbersome to journalise each transaction. So for easy, efficient and accurate recording of business transactions, Journal is sub-divided into special journals. Many of the business transactions are repetitive in nature. They can be easily recorded in special journals, which are used for recording all the transactions of a similar nature. These special journals are also called daybooks or subsidiary books. Transactions that cannot be recorded in any special journal are recorded in a journal called the Journal Proper. Special journals are very economical and provide for division of labour in accounting work. In this chapter we shall discuss about the following books:
  • Cash Book
  • Purchases Book
  • Purchases Return (Return Outwards) Book
  • Sales Book
  • Sales Return (Return Inwards) Book
  • Journal Proper

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