Book of Prime Entry: Difference between revisions

Latest revision as of 03:35, 1 September 2025

A book of prime entry is the place where a financial document is first recorded in the business, for this reason they are called the books of prime entry. The books of prime entry include the:

The day books used for credit sales, sales returns and discounts allowed are:

Note

The books of prime entry are not part of the double entry bookkeeping system. The totals from these are however used later in the system.

Reasons for using Books of Prime Entry

Totals can be checked before they are entered into the ledger accounts
It reduced the number of individual transactions om the ledger accounts (for example sales would typically be hundreds a day)
Allows the roles of the accounting department to be split up (one person can enter the individual transactions whilst another can concentrate on the double entry accounts.

@@ Line 1: / Line 1: @@
-A book of prime entry is the place where a [[Financial Document|financial document]] is first recorded in the [[business]]. The books of prime entry include the [[Sales Day Book|sales day book]] ([[Day Book|day book]]), [[Cash Book|cash book]] and [[Petty Cash Book|petty cash book]].
+A book of prime entry is the place where a [[Financial Document|financial document]] is first recorded in the [[business]], for this reason they are called the books of prime entry. The books of prime entry include the:
+* [[Sales Day Book|Sales day book]] ([[Day Book|day book]]),
+* [[Cash Book|Cash book]]
+* [[Petty Cash Book|Petty cash book]].
+The day books used for credit sales, sales returns and discounts allowed are:
+* [[Sales Day Book|Sales day book]]
+* [[Sales Returns Day Book|Sales returns day book]]
+* [[Discounts Allowed Day Book|Discounts allowed day book]]
+=== Note ===
+The books of prime entry are not part of the [[Double-Entry Bookkeeping System|double entry bookkeeping system]]. The totals from these are however used later in the system.
+=== Reasons for using Books of Prime Entry ===
+* Totals can be checked before they are entered into the [[Ledger Account|ledger accounts]]
+* It reduced the number of individual [[Financial Transaction|transactions]] om the ledger accounts (for example sales would typically be hundreds a day)
+* Allows the roles of the [[accounting]] department to be split up (one person can enter the individual [[Financial Transaction|transactions]] whilst another can concentrate on the [[Double-Entry Bookkeeping System|double entry accounts]].