books of prime entry
First of all, according to Vinod (2008 -2013) books of prime entry are books where transactions are first recorded. These may or may not be part of the double system. These are not accounts; they are simply books that record details of transactions. Books of prime entry are also known as books of original entry / subsidiary book/ daybooks among others. In any organization where company’s buy and sell goods, will need to divide the journal into subsidiary books. And they are as follows:
Sales book. This is a subsidiary book which is made for recording of goods sold on credit. But there are some other transactions that are not supposed to be included because they are some books responsible for those transactions and there are as following; cash sale of goods and credit or cash sale of fixed assets. There are many other names of sales book like sales day book, sales journal or customer's journal. It should also be noted that the sales book is maintained on the basis of the invoice.
Purchases book. In this subsidiary book we record all transactions relating to credit purchases of goods only and these goods are trading goods. And accountants do not record cash purchases and purchase of assets in which company does not deal in. Its other name is bought book, purchase journal and purchase day book. This book is maintained on the basis of invoice. Accountant records quantity of products, rate and amount from invoice. Each transaction is recorded by giving invoice no.
Purchases returns book. Like other parts of subsidiary books, this book is also part of sub-division of journal and it used to record all goods which return to our supplier because his goods are maybe not according to our sample or his stock was defective or goods were not sent according to our purchase order and it will help reduce our payable amount to our creditors. Another name for it is return outwards book and it is written on the basis of debit note. A debit note is proof that we have returned
Sales book. This is a subsidiary book which is made for recording of goods sold on credit. But there are some other transactions that are not supposed to be included because they are some books responsible for those transactions and there are as following; cash sale of goods and credit or cash sale of fixed assets. There are many other names of sales book like sales day book, sales journal or customer's journal. It should also be noted that the sales book is maintained on the basis of the invoice.
Purchases book. In this subsidiary book we record all transactions relating to credit purchases of goods only and these goods are trading goods. And accountants do not record cash purchases and purchase of assets in which company does not deal in. Its other name is bought book, purchase journal and purchase day book. This book is maintained on the basis of invoice. Accountant records quantity of products, rate and amount from invoice. Each transaction is recorded by giving invoice no.
Purchases returns book. Like other parts of subsidiary books, this book is also part of sub-division of journal and it used to record all goods which return to our supplier because his goods are maybe not according to our sample or his stock was defective or goods were not sent according to our purchase order and it will help reduce our payable amount to our creditors. Another name for it is return outwards book and it is written on the basis of debit note. A debit note is proof that we have returned