Standard entries in Books and ledgers Topic: Books of Prime Entry

BOOKS OF ORIGINAL ENTRIES

These are the books of first entry. The transactions are first recorded in these books before being
entered in the ledger books. These books are also called as books of Prime entry or Subsidiary
books. They are six in number.

1. Purchases Journal (or Purchases Book) used to record all credit purchases of goods. It is
written up from invoice.

2. Sales Journal (or Sales Book) is used to record all the credit sales of goods. It is written up
from the invoice.

3. Sales Returns Journal (or Return Inwards Book): It is used to record all returns inwards. It
is written up from the copies of the credit notes send to customers.

4. Purchases Return Journal (or Returns Outwards Book): It is used to record all purchases
returns. It is written up from the credit notes received from the suppliers.

5. Cash Book: It is used to record all receipts and payments of cash and cheques. It is been given
the ruling in such a way that it acts both as a book of original entry and ledger account.

6. General Journal (or Journal): This book is used to record all those items or transactions that
cannot be recorded in any other book of original entry like

i. Correction of errors
ii. Opening entries
iii. Purchase or Sale of Assets on Credit etc.

Page: 01 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

Standard entries in Books and ledgers Topic: Books of Prime Entry

Seller copy of Invoice: (Sales Invoice)

Recording of transaction from Invoice to Sales day book (Book of Prime Entry:

Recording of transaction from Sales day book to Ledgers:

Page: 02 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

Standard entries in Books and ledgers Topic: Books of Prime Entry

Customer’s Copy of Invoice: (Purchase Invoice)

Recording of transaction from Invoice to Purchase day book (Book of Prime Entry):

Page: 03 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

Standard entries in Books and ledgers Topic: Books of Prime Entry

Recording of transaction from Purchase day book to Ledgers:

Page: 04 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

Standard entries in Books and ledgers Topic: Books of Prime Entry

Sales return day Book (Sales Journal)

Sample Credit Note:

Recording of Return Inward transaction from Credit Note to Returns Inward

Book (Sales Return Book) and Ledgers:

Page: 05 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

Standard entries in Books and ledgers Topic: Books of Prime Entry

Page: 06 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

Standard entries in Books and ledgers Topic: Books of Prime Entry

Returns Outward Book:

Sample Debit Note:

Recording of transaction from Debit Note to Returns Outward Book and

Ledgers:

Page: 07 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System

 Standard entries in Books and ledgers Topic: Books of Prime Entry

Dr. CASH BOOK (Sample) Cr.

Date Details F Cash $ Bank $ Disc. Date Details F Cash $ Bank $ Disc.
(RECEIPTS) All. $ (PAYMENTS) Rec.
$
1/8 Balance b/f 1800 16000 2/8 Rent 300
5/8 Sales 4300 3/8 Utilities 1240
7/8 C. Lebrity 3400 135 11/8 Bank C 4000
9/8 Sales 2980 15/8 Vendor Ltd 2755 145
11/8 Cash C 4000 18/8 Drawings 1500
25/8 Bank C 500 20/8 Motor repairs 850
25/8 Cash C 500
31/8 Balance c/f 1750 20085

6600 26380 135 6600 26380 145

5/1 Balance b/f 1750 20085

Standard Format of GENERAL JOURNAL

Amount Amount
$ $
Date Details Folio
Dr. Cr.

The name of the account to be debited. xxx

The name of the account to be credited. xxx
(The narrative.)

The name of the account to be debited. xxx

The name of the account to be credited. xxx
(The narrative.)

_______________________________
Page: 08 By; Mohsen Shafiq, Teacher, A level, Beaconhouse School System