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Books of Original Entry



What is Books of Original Entry?

When a businessman starts their company, one of the primary things they do is keep a track of their everyday transactions. These transactions are recorded on a timely basis (depending on the nature of their business) in a book before they are transferred to ledger accounts. Books of original entry is nothing but an accounting book or journal where all transactions are initially recorded. All business transactions, their details and descriptions are first recorded in the book of original entry.

Entering transactions on a regular basis in Book of original entry that carries details and evidence of business transactions before they are posted or transferred into proper ledger because, without the book of original entry being filled with evidence of business transactions, the writing of a ledger cannot be initiated.

Types of Books of Original Entry:

  • General Journal - To record the transactions not recorded in special journals
  • Special Journals - Special journals include further sub-journals; as given below:
  • Sales journal - To record sales invoices issued by the firm when selling goods on credit
  • Purchases journal - To record purchases invoices received by the business from suppliers, when buying goods on credit
  • Return inwards journal - To record sales returns from customers
  • Return outwards journal - To record purchases returns to suppliers
  • Cash book - To record receipts or payments

Components of Books of Original Entry or Books of Prime Entry or Day Books:

Entries in the books of original entry normally consist of:

  • Date of transaction
  • Details relating to transactions, i.e., the second aspect of transactions, e.g., name of trade receivable in sales journal
  • Monetary amount of the transactions
  • References to the relevant ledger account (often called folio)
  • References to original source documents, e.g., invoice number

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