Books of Prime Entry Flashcards
what is a sales day book used for?
used to list the credit sales taht the business has issued invoices for during a period
what happens at the end of a period to the sales day book?
the book is then transferred to the sales account
what happens when goods are sold on credit
invoice is issued to customer
what is the sales day book?
book of prime entry
what is the sales return day book?
this book is used to list the credit sale returns that the business has issued credit notes for
what is the process of the sales day book?
goods sold on credit, entered in sales day book, debit the receivebles acc and credit the sales acc
what happens at the end of the period to the sales return day book?
the total is transferred to the sales returns acc
what is the process of the sales returns day book?
goods returned by the cust, entered in the sales returns day book, debit the sales returns acc & credit the recievables acc
what is the purchases day book used for?
this is used to list all the credit purchases that the business has recieved invoices for.
what is the process of the purchases day book?
goods purchased on credit, enter in the purchases day book, debit the purchases acc
what is the purchase returns day book used for?
to list all the credit purchase returns that the business has recieved credit notes for
what are the purchase returns day book trasnferred to at the end of the period?
tramsferred to purchases returns acc
what is the process of the purchases returns day book?
good returned to the supplier, entered in the purchases returns day book, debit and credit the purchases returns acc
what is the analysed day books used for?
it might be useful for the business to ananlyse thier sales or expenses within the daybook, eg if they had 3 different types of sales
what does the discounts allow and recieved day book reecord?
promopt payment discounts and does not record trade or bulk discounts
why does the discounts book not record trade if bulk discount?
this is accounted for within the original invoice
what do the daybooks record?
the credit notes that are either issued to customer’s or received by suppliers once discount has been taken
what is the petty cash book?
where small paymwnts and recipt in cash are recorded. - usually has a petty cash tin
what i the cash book used to record?
this records reciept and oayments that go via the business bank acc and makes up part of the double entry system
for small businesses, which book is commonly used on its own?
the csh book is the only book of prime entry
why might a business split the cash book?
to show a cash recipt book and a cash payment book
what does the general ledger include?
cash sales and purchases
why does the GL include cash sales and purchases?
as they do not get posted to the recievables and payables ledger accs, as they are not credit items
