Subsidiary Journals

In contemporary accountancy, subsidiary journals keep a complete record of all financial transactions, logged in chronological order. It is sometimes referred to as the original book of entry. This is because the journal is typically used for initially recording transactions, prior to them being posted into the company’s final ledger. Journals and subsidiary books exist in a variety of forms, including purchase journals, sales journals and general record journals. Though accountancy has become largely computerized, subsidiary books of accounts still play a key role in the maintenance of accurate accounts for businesses worldwide.

This tutorial provides a comprehensive overview of the concept of the accountancy journal, along with the different types of subsidiary books and the collective importance of subsidiary books. Course content primarily focuses on the definition of subsidiary books, the benefits of keeping a journal, as part of a wider accountancy strategy. In addition, ledgers are introduced along with a breakdown of the imprest system – both of which represent key components of contemporary corporate accountancy.