Importance or Objectives or Advantages of Subsidiary Books

1. Saving of Time and Labor: If all the transactions of similar nature are recorded together in a separate book, a considerable amount of labor and time can be saved. There is no need of preparing journal for each transaction with its narration. In other hands, different subsidiary books may be prepared by different clerks so that all the transactions are entered in subsidiary immediately as they occur. For example, many credit purchases of all the day can be recorded in purchase book as a single entry.
2. Divisions of Works: Recording of transaction in subsidiary books can be performed by different clerk as per nature of subsidiary books. It means a person may be employed to record the purchase on credit whereas another may be for credit sales. Thus, it introduces the division of labor. Division of labor increases the work efficiency of labors. The working labors have the specialization on their job.
3. Quick Access to Information: Since the transactions relating to one particular head are recorded in a separate book, it is easy to get any type of information in detail.
4. Possibility of Internal Check: Different subsidiary books may be maintained by different clerks and the balance of a subsidiary book determined by a clerk also may be recorded by another clerks while posting into ledgers and preparing trial balance. Thus, error or fraud committed by one may be checked by another.