JAIIB | ACCOUNTING AND FINANCIAL MANAGEMENT (AFM) | SUBSIDIARY BOOKS – CASE STUDY

The Junior Associate of the Indian Institute of Bankers (JAIIB) examination is a gateway for banking professionals to intensify their knowledge and expertise. In the Accounting and Financial Management (AFM) module, the topic of subsidiary books is structural for mastering the practical aspects of recording transactions in an efficient manner. Learning Sessions presents this article on the case study that delves into the significance of subsidiary books in banking operations.

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Subsidiary books, also known as books of original entry, are specialized accounting records used to systematically document transactions. Instead of recording every transaction in the general ledger, they are first entered into these books based on their nature.

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Common types of subsidiary books include:

1. Purchase Book: Records all credit purchases of goods.
2. Sales Book: Records all credit sales of goods.
3. Cash Book: Tracks all cash transactions, including receipts and payments.
4. Journal Proper: Captures adjustments and rare transactions not covered by other books.
5. Purchase Returns Book: Logs returns of purchased goods.
6. Sales Returns Book: Tracks returns of sold goods.

These books simplify ledger postings, improve accuracy, and enhance the efficiency of financial recording.

Similarly, In the banking context, subsidiary books are essential for:

1. Efficient Transaction Management: Facilitating structured recording of daily financial activities.
2. Error Reduction: Minimizing errors by segregating transactions into distinct categories.
3. Audit Readiness: Ensuring financial data is well-organized for periodic audits.
4. Regulatory Compliance: Maintaining accurate records to meet RBI and other regulatory requirements.

In general it can be said that, Subsidiary books form the keystone of structured financial recording in banks and other organizations. For JAIIB candidates, considering this topic in the AFM module is necessary for succeeding in both the exam and their professional roles. With a clear knowledge of subsidiary books, you can improve transaction management, ensure audit readiness, and achieve greater operational efficiency in your banking career. Learning Sessions provides additional information about JAIIB AFM TYPES OF RECEIPTS by giving examples of real life scenarios.

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