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Book of Prime Entry Overview

This document outlines the books of prime entry and ledgers used in accounting. It lists the source documents recorded in books like the sales journal, purchase journal, and cashbook. It also describes the three main ledgers - sales ledger for debtors, purchase ledger for creditors, and general ledger for key accounts. Finally, it provides examples of T-accounts showing typical transactions posted to the trade receivables and trade payables accounts.

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Abdul Raheem
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26 views2 pages

Book of Prime Entry Overview

This document outlines the books of prime entry and ledgers used in accounting. It lists the source documents recorded in books like the sales journal, purchase journal, and cashbook. It also describes the three main ledgers - sales ledger for debtors, purchase ledger for creditors, and general ledger for key accounts. Finally, it provides examples of T-accounts showing typical transactions posted to the trade receivables and trade payables accounts.

Uploaded by

Abdul Raheem
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Book of prime entry/Ledgers Notes

List of Book of prime entry and the source documents required to record in these books.

Source Documents Books of Prime Entry Items Recorded

Sales Invoice Sales journal/ Sales Day Book Credit Sales only

Purchase Invoice Purchase journal/ Purchase Day Credit Purchases only


Book
Credit Note Sales Return Journal/ Sales Return Credit Sales Return only
Day Book
Debit Note/Credit Note Purchase Return Journal/ Purchase Credit Purchase Return only
Return Day Book
Cheque/Receipts Cashbook Cash and Bank transactions
only
- General Journal Remaining Transactions

Types of ledgers/Sub division of ledgers (T-Accounts)

1. Sales Ledger: All trade receivables/credit customers/debtors accounts only


2. Purchase Ledger: All trade payables/credit suppliers/creditors accounts only
3. General Ledger: Sales a/c, Sales return a/c, Purchase a/c, Purchase return a/c, Assets
a/c, Liabilities a/c, Income a/c, Expenses a/c, drawings a/c, capital a/c.

SALES LEDGER

+ Trade Receivables A/C -


b/d (trade receivables at the start of the year) x Cash/bank from customer x
(Cash book)
Credit Sales (Sales Journal) x
Sales Return ([Link] journal) x

Discount Allowed (cashbook) x

Bad Debts (General Journal) x

c/d (trade receivables at the end


of the year) x
PURCHASE LEDGER

- Trade Payables A/C +


Cash Payment to Suppliers (Cashbook) x b/d ([Link] at the start) x

Purchase Return ([Link] journal) x Credit Puchases (Purchase journal) x

Discount Received (Cashbook) x

c/d ([Link] at the year end)

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