Why Do We Prepare Subsidiary Journals

Preparation Of Subsidiary Journals In Accounting

Subsidiary Journal or Subjournal or Subsidiary Book is prepared to record those Transactions that take place in large quantity on daily basis in order to avoid difficulty in handling the heavy amount of individuals’ accounts data at one place and easily check the individual’s records separately.

We can save time and place of General Journal as subsidiary Journals are kept by different accounts departments separately which, if these Accounts are in one place, can’t be easily handled and resulted in a lots of time and also difficulty in recording the data by one single accountant at one time and at one place.

It also helps us in avoiding mistakes, errors and frauds as various accounts departments check the Books of Accounts which should be checked again and again by different accounting department to verify its own records.