Bank Book

Introduction

Subsidiary books are special-purpose accounting books that sequentially record transactions in a book that belong to the same category. The transactions are also recorded in their original form, i.e., as and when they occur, they are entered in the subsidiary book before being posted anyplace, which is why it is also known as the book of original entry. 

Types of Subsidiary Books

1. Day books
2. Bill books
3. Cash books
4. Journal proper

Day Book

Purchase Day Book

This book is used to keep track of the firm’s credit purchases of products over the course of the accounting period. Purchase invoices serve as a foundation for entering transactions in the purchase book for this reason. 

Sales Day Book

This book records all of the company’s credit sales of items over the course of the accounting period. Sales invoices serve as the foundation for keeping track of sales transactions. It’s worth mentioning that asset credit sales are recorded in the Journal Proper. 

Purchase Return Book

It’s also known as a return outward book, and it keeps track of the company’s returns of items to suppliers. When the items are returned to the supplier, the firm (debtor or buyer) issues a debit note to the supplier (creditor or seller). 

Sales Return Book

This book, sometimes known as the return inward book, keeps track of goods returned by customers and sold by the company. When a customer returns items to the company, the company issues a credit note to the customer (buyer or debtor) (creditor or seller). 

Bill books

Bills Receivable Book

When a company creates bills in the name of its clients, it keeps a bill receivable book to keep track of these bills. The amount will be recorded as bills receivable on the credit side of the individual party’s account. At the end of the month, the amount of the bills receivable will be applied to the debit side of the bills receivable account. 

Bills Payable Book

The bill payable book keeps track of all bills accepted by the company and drawn by suppliers for payment at a later date. The sum will be credited to the debit side of each party’s account. At the end of the month, the amount of these books is credited to the bills payable ledger account. 

Cash Book

The cash book records all cash sales, cash purchases, cash asset sales, cash expenditure payments, cash revenue receipts, and other transactions that are made in cash or by check. 

Journal Proper

In the event that no special book exists to record a transaction, it is recorded in the journal itself. Opening entries, closing entries, rectification entries, transfer entries, adjustment entries, entries for bills dishonour, miscellaneous entries, and so on are all found in the journal proper. 

Bank Book

A bank book, sometimes known as a bank journal, is a subsidiary book of accounts that accountants use to keep track of their banking transactions. It keeps track of all receipts and payments made at the bank. The bank book is a book that keeps track of deposits, withdrawals, and checks received and issued. It is frequently misinterpreted as a passbook. Both of them, however, are distinct from one another. 

Bank Book Format

Bank Book Template has debit and credit sides, much like any other Accounting Ledger. The receipts are recorded on the debit side, while the payments are recorded on the credit side. The columns on the debit and credit sides are as follows: 

1. Date
2. Particulars
3. Description
4. Amount

It’s a straightforward three-step procedure:

1. Keep track of all inward and outbound transactions.
2. Define the type of transaction and give each one a description. 
3. To match transactions with your bank statements, reconcile weekly, biweekly, fortnightly, or monthly. 

Conclusion

The biggest benefit of keeping a Bank Book is that it makes bank reconciliation easier. Finally, this aids in the reduction of errors between account and bank data. Discrepancies can be caused by a minor human error on the part of the bank official or the accountant. As a result, keeping accurate records and reconciling accounts on a regular basis allows us to spot and remedy issues before the monthly/quarterly/yearly close of accounts.