What are the advantages of subsidiary books? [July 2021, 5 Marks; June 2024, 5 Marks]; [MTP Jan. 2025]
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Accounting ProcessQuestion 4657 of 84
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Detailed Solution & Explanation
Following are the uses & advantages of subsidiary book:-
1. Division of work: In place of one journal, there will be multiple subsidiary books &
therefore the accounting work can be easily divided amongst a number of clerks.
2. Specialization and efficiency: When the same work is allotted to a particular person
over a period of time, he acquires full knowledge of it and becomes efficient in handing
it. Thus division of work results in advantage of specialization of efficiency.
3. Saving of the time: Various accounting process can be undertaken simultaneously
because of the use of multiple 1mbsidiary. This result in the work being completed
quickly.
4. Availability of information: Since a separate register or book is kept for each class of
transactions, the information relating to each transactions will be available at one
place, in a comprehensive manner.
5. Facility in checking: When the trial balance does not match, the locating of the error
or errors is facilitated by the maintenance of separate subsidiary books. Even the
commission of errors and frauds will be checked by the use of multiple subsidiary
books.
About This Chapter: Accounting Process
Paper
Paper 1: Accounting
Weightage
25-30%
Key Topics
Journal, Ledger, Trial Balance, Cash Book, Rectification
This chapter covers Journal, Ledger, Trial Balance, Cash Book, Rectification and is part of Paper 1: Accounting in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 25-30% weightage. Focus on understanding core concepts rather than memorizing.
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