BOOKS OF PRIME ENTRY
Prime Books of entry are listing devices which help to remove a lot of detail from
the ledgers. It also means that book –keeping can be divided between several
people.
They are also called books of original entry/ subsidiary books
Transactions are recorded here before being recorded in the ledgers.
The Cash book and Petty cash book are both ledgers and prime books of entries.
Trade Discount does not appear in the ledger a/c ; it may be shown in the prime
books. The value of the goods bought reduces.
There are 7 books of prime entry:-
Sales Journal
Sales return Journal
Purchases Journal
Purchases Returns Journal
Cash Book
Petty Cash book
General Journal
SALES JOURNAL/SALES DAY BOOK
FORMAT OF SALES JOURNAL
SALES RETURN/RETURN INWARDS
FORMAT OF SALES RETURN BOOK
PURCHASE DAY BOOK
FORMAT OF PURCHASE DAY BOOK
PURCHASE RETURN/ RETURN OUTWARDS
FORMAT OF PURCHASE RETURN
BOOK
GENERAL JOURNAL
The journal or general journal is used whatever is not entered
into any other book of prime entry before they are recorded in
the ledgers
A Journal shows :-
Date of the transaction
Account name to be debited and credited and respective
amounts
A narrative ie short description of what is being recorded and
why it is being recorded
When a business begins operation, or begins recording its
financial transactions there are opening journal entries that are
made to record the investment of capital , any liabilities that
the business has . These items are then posted into the ledger
GENERAL GUIDELINES
Show debit entries first.
Slightly indent credit entries in details column
Draw a line after each separate entry and its narrative if
required only in details column.
Purchase and Sale of non- current asset are not recorded in any
other book of prime entry so they are recorded in the general
journal and then posted to ledger.
Any sales made on cash or for cheque will be recorded in the
cash book and then in the purchases a/c
GENERAL GUIDELINES ( CONTD..)
Credit sales is recorded in the sales journal and debtors a/c
when the sale is made . The total is transferred to the sales a/c
as total credit sales for the month. The total of cash sales is also
transferred to the sales ledger from the cash book at the end of
the month.
Sales return – if for cash are recorded in the sales a/c (end of the
month) and cash book during the transaction. Returns on good
bought for credit are entered in the sales return journal and
debtors a/c at the date of the transaction and total is posted to
the sales return account at the end of the month as “total credit
sales return of the month”.
GENERAL GUIDELINES ( CONTD..)
There will be 2 effects in the ledger from all the books of prime
entry other than the cash book and petty cash book, where
there will only be one effect (as they are also ledgers)
