BOOK OF ORIGINAL ENTRY

BOOK OF ORIGINAL ENTRY

 Are the books in which we first record transaction.

TYPES OF BOOK OF ORIGINAL ENTRY

  Sales day book(sales journal)

      Purchase day book (purchase journal)

     Return inward day book(return inward journal)

    Return outward day book(return outward journal)

      Cash book

 General journal(Proper Journal)

GENERAL JOURNAL (PROPER JOUNAL)

     Is a book of original entry (simple entry) in which miscellaneous credit transactions which do not fit in any other books are recorded its also called miscellaneous journal.

   The form and procedure for maintaining this journal is the same that of simple journal.

USERS OF JOURNAL PROPER IS CONFINED TO RECORM THE FOLLOWING TRANSACTIONS.

1.   Opening entries

2.   Closing entries

3.   Transfer entries

4.   Adjustment entries

5.   Rectification entries

OPENNIG ENTRIES

   When a businessman wants to open the book for a new year, its necessary to journalize the various assets and liabilities before the new accounts are opened in the ledger,the journal entries so passed

CLOSING ENTRIES

       When the book are balanced at the close of the accounting  period with a view to paper final accounts it is necessary that  balance of all the income and expenses accounts must be transferred to trading and profit and loss account.

       The process of transferring balances to the trading and profit /loss account at the end of year at that time .

TRANSFER ENTRIES

      When accounts are transferred from one  account to another for combination of allied items its necessary to pass transfer entry.

ADJUSTMENT ENTRIES

   Modification of the accounts at the end of an accounting period

If there be any event affecting the related period of account but left out of the book, the same should be incorporated in the books before the preparation of the final accounts.

   This is done by means of adjusting entries through the journal proper.

RECTRIFICATION ENTRIES

  When an error is detected in the books the same is rectified through an entries in the journal proper

SALES JOURNAL

   Is a special journal where credit sales to customers are recorded.

   Each credit  sales the buyer will demand a document from a seller known as  sales invoice

Invoice

    Is a document prepared by a seller to the buyer to show the quality of goods sold and price.

FUNCTION OF SALES JOURNAL

1.   Sales Journal include:- date, invoice no, folio, amount

2.   Sales ledger :- all the detail in sales journal you should open as ledger

3.   Sales general ledger:- balance the amount which you get from the sale journaL

PURCHASE JOURNAL (PURCHASE DAY BOOK )

 Is the book of prime entry used to record credit purchase.

Purchase invoice

Is a document received by purchaser showing details of goods bought and their prices

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FUNCTION OF PURCHASE JOURNAL

1.   Purchase include:- date, invoice no, folio, amount

2.   Purchase ledger :- all the detail in Purchase journal you should open as ledger

3.   Open the purchase general accounts

CASH BOOK

Is the book used to record transaction in credit entry and debt entry.

RETURN IN WARD JOURNAL / (SALES RETURN DAY BOOK)

 Are the goods which are returned in the business by its customers.

Credit note

 Is a document which is sent to a customer showing allowance given by supplier in respect of unsatisfactory goods

RETURN OUTWARD JOURNAL (PURCHASE RETURN DAY BOOK)

 Is the book of prime entry for the  goods returned to supplies.

Debt Note

Is a document sent to supplier showing allowance given for unsatisfactory