Books of prime entry Flashcards
What is a book of prime entry?
Where business transactions are first recorded before being transferred to the main ledger.
What is the purpose of a book of prime entry?
To provide an organised way of recording business transactions.
It helps to save time and reduce the risk of errors.
What are the books of prime entry?
Sales journal
Sales return journal
Purchases journal
Purchases return journal
Main cash book
General journal
What does a sales journal do?
Lists credit sale transactions.
What does a sales returns journal do?
It records all goods sold on credit that have been returned.
What does a purchases journal do?
Lists credit purchase transactions.
What does a purchases returns journal do?
Shows goods returned to the supplier.
What does the main cash book do?
Records cash and bank transactions.
What does the general journal do?
Lists unusual transactions which aren’t recorded in the other books of prime entry.
