Books of original entry
are where transactions are first entered into the system; from these books the
entries are then transferred into the ledger account.
are where transactions are first entered into the system; from these books the
entries are then transferred into the ledger account.
The main books of original entry are:
1.
Sales Day Book: It records the day to day
sales invoices to customers and VAT amount.
Sales Day Book: It records the day to day
sales invoices to customers and VAT amount.
2.
Sales Return Day Book: Also known as Returns
Inward Day Book. This records any return made by the customer to the business
which will result in a credit not being issued.
Sales Return Day Book: Also known as Returns
Inward Day Book. This records any return made by the customer to the business
which will result in a credit not being issued.
3.
Purchase Day Book: This records the day to
day purchase invoices made by the company from their suppliers including VAT
amounts.
Purchase Day Book: This records the day to
day purchase invoices made by the company from their suppliers including VAT
amounts.
4.
Purchase Return Day Book:
Otherwise
known as the Returns Outwards Day Book. This records any returns sent back to the
suppliers also resulting in a credit note.
Purchase Return Day Book:
Otherwise
known as the Returns Outwards Day Book. This records any returns sent back to the
suppliers also resulting in a credit note.
5.
Cash Book: This is used to record
all bank and cash payments and receipts and is also a main book of account
within the ledger as well as a book of original entry.
Cash Book: This is used to record
all bank and cash payments and receipts and is also a main book of account
within the ledger as well as a book of original entry.
6.
Petty Cash Book: This is used to record
all small cash payments recorded using the petty cash voucher.
Petty Cash Book: This is used to record
all small cash payments recorded using the petty cash voucher.
7.
Journals: This is used to record
transactions that are not covered in the books of original entry. It is used to
explain correction or unusual entries that do have documents to support them.
Journals: This is used to record
transactions that are not covered in the books of original entry. It is used to
explain correction or unusual entries that do have documents to support them.
