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    Poa Revision - Book of Original Entry CSEC REVISION

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    nikeiraawer1
    The document discusses the books of original entry used in accounting, including the purchases day book, sales day book, purchases returns book, sales returns book, cash book, and general journal. It describes how transactions are recorded in these books and then posted to subsidiary ledgers and the general ledger.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Poa Revision - Book of Original Entry CSEC REVISION

    Uploaded by

    nikeiraawer1
    69 views4 pages
    The document discusses the books of original entry used in accounting, including the purchases day book, sales day book, purchases returns book, sales returns book, cash book, and general journal. It describes how transactions are recorded in these books and then posted to subsidiary ledgers and the general ledger.

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    poa revision- book of original entry CSEC REVISION

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    The document discusses the books of original entry used in accounting, including the purchases day book, sales day book, purchases returns book, sales returns book, cash book, and general journal. It describes how transactions are recorded in these books and then posted to subsidiary ledgers and the general ledger.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    69 views4 pages

    Poa Revision - Book of Original Entry CSEC REVISION

    Uploaded by

    nikeiraawer1
    The document discusses the books of original entry used in accounting, including the purchases day book, sales day book, purchases returns book, sales returns book, cash book, and general journal. It describes how transactions are recorded in these books and then posted to subsidiary ledgers and the general ledger.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    BOOKS OF ORIGINAL ENTRY/SUBSIDIARY BOOKS

    - Transactions are recorded here before posting to ledger

    1. The Purchases Day Book – This is a list of all the business’ creditors. It is used to
    record all transactions of goods that were purchased on credit

    2. The Sales Day Book – This is a list of all the business’ debtors. It is used to
    record all transactions of sale of goods on credit

    INVOICES ARE RECORDED IN SALES BOOK AND PURCHASES BOOK


    - Invoices sent- sales book
    - Invoices received- purchases book

    3. The Purchases Returns and Allowances Book - used to record any returns of
    goods to creditors (i.e. any goods that are returned by your business to its
    suppliers)

    4. The Sales Returns and Allowances Book - used to record any returns of goods
    from debtors (i.e. any goods that are returned by the business’ customers)

    5. The Cash Book -


    - a cash transaction is any transaction made by cash or cheques.

    - The cash book is used to record all receipts of cash to the business and all
    payments of cash from the business.

    6. The General Journal – used to record all other transactions not recorded in the
    other subsidiary books. Further details of the General Journal are given in the
    related notes that follow.

    THE PURPOSE OF USING BOOKS OF ORIGINAL ENTRY


    1. Books of original entry help split work among clerks.

    2. Different transactions go in different books, so the job of recording


    transactions can be distributed and fewer end up in the general ledger.
    POSTING THE PURCHASES, SALES, PURCHASES RETURNS AND
    SALES RETURNS BOOKS TO THE SUBSIDIARY LEDGERS
    The subsidiary ledgers are:

    √ The Purchases Ledger which contains only the accounts of creditors

    √ The Sales Ledger which contains only the accounts of debtors

    √ The General Ledger which is reserved for all expenses and revenue accounts
    (e.g. sales, purchases, sales returns, purchases returns, wages, electricity,
    utilities, interest paid, rent, etc. and the cash a/c and bank a/c)

    So divide your ledger page into “Purchases ledger”, “Sales


    ledger” and “General ledger”

    Purchases ledger:
    - “Purchases” always goes on right side
    - “Purchases returns” always go on left side
    For purchases returns, just add it to the purchase before that that person
    made

    Sales ledger:
    - “Sales” always on left side
    - “Sales returns” always on right side
    For sales returns, just add it to the sale before that that person made

    General Ledger
    Purchase A/C AND Purchases returns A/C
    - “Sundry creditors” on right side along with total from each
    respective subsidiary book

    Sales A/C AND Sales returns A/C


    - “Sundry Debtors” on left side along with total from each respective
    subsidiary book
    CASH BOOK
    GENERAL JOURNAL
    Used for other transactions that are not recorded in the other books of
    original entry.

    - Opening entries
    - Purchase of fixed assets on credit
    - Sale of fixed assets on credit
    - Depreciation and provision for depreciation
    - Bad debts and provision for bad debts
    - Dishonured cheques
    - Bank loans and interest charges

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