Pricing Table Particle

Quickly drive clicks-and-mortar catalysts for change
  • Basic
  • Standard Compliant Channels
  • $50
  • Completely synergize resource taxing relationships via premier market
  • 1 GB of space
  • Support at $25/hour
  • Sign Up
  • Premium
  • Standard Compliant Channels
  • $100
  • Completely synergize resource taxing relationships via premier market
  • 10 GB of space
  • Support at $15/hour
  • Sign Up
  • Platinum
  • Standard Compliant Channels
  • $250
  • Completely synergize resource taxing relationships via premier market
  • 30 GB of space
  • Support at $5/hour
  • Sign Up

Search Our Site

Books of Original Entry
Accounting
Topic Five

Previous - Cash Flow Statement

When businessmen start 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.

A journal is the book of original entry or prime entry in which transactions are recorded from the books of accounts from the source documents. The transactions are recorded in a chronological order i.e., as and when they take place.

Journalizing is the process of recording transactions in the book of original entry. The transactions are recorded in the form of a journal entry. Recording is made following the double-entry system of accounting. Thus, it records the two-fold effect of every transaction.

In the process of journalising, the transaction is first analyzed in order to decide the account to be debited or credited by ascertaining the rule of debit and credit. After this, entries are recorded in books of accounts.

Types of Books of Original Entry

  • General journal-records the transactions not recorded in special journals.
  • Sales journal-records sales invoices issued by the firm when selling goods on credit.
  • Purchases journal-records purchases invoices received by the business from suppliers, when buying goods on credit.
  • Return inwards journal-records sales returns from customers.
  • Return outwards journal-records purchases returns to suppliers.
  • Cash book-records receipts or payments.
  • Bank journals-are also maintained for the period, which holds all the transactions involving the movement of amounts from the bank accounts of the organization. 

Next - Ledgers and Trial Balance