Professional Documents
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Unit 5 Books of Original Entries
Unit 5 Books of Original Entries
UNIT 5
BOOKS OF ORIGINAL ENTRIES
In the accounting cycle, next to the source documents, we have the books of original entries.
These are usually referred to as books of prime entries as accounting transactions are first
recorded therein before they are posted into the various accounts in their respective ledgers.
The books of original entries include the following:
- Sales day book or Sales journal
- Purchases day book or Purchases journal
- Returns Inwards day book or Return Inwards journal or Sales Returns day book or Sales
Returns journal.
- Return Outwards day book or Return Outwards journal or Purchases Returns day book
or Purchases Returns journal.
- The Journal proper
- The cash book
Returns Inwards day book or Return Inwards journal or Sales Returns day book or Sales
Returns journal
This book records goods previously sold on credit to customers but were later returned due to
one reason or the other; which could be shortage in quantity, weight, and other measures;
deficiency, government policy etc.
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Return Outwards day book or Return Outwards journal or Purchases Returns day book
or Purchases Returns journal.
This records goods previously bought on credit for the purpose of resale; but later returned to
the supplier due to one reason or the other; which could be wrong specification, colour or
model, deficiency in one form or the other etc.
Journal Proper
This is used to record miscellaneous credit transactions which cannot be done in any other day
book. It is used to record the following transactions:
- Opening entries
- Closing entries
- Adjustment entries
- Transfer entries
- Rectification entries
- Entries for rare transactions
- Entries for which there is no special journal.