Cambridge IGCSE Accounting – 0452

ACCOUNTING NOTES
Chapters 7 – Books of Prime Entry
Businesses use books of prime entry to record goods sold on credit, goods
purchased on credit, sales returns and purchases returns. These are also known as
books of original entry or subsidiary books.
These books are basically listing devices, grouping similar types of transactions,
which is useful when posting to a ledger. They assist in collating and
summarizing of accounting information and are useful when preparing control
accounts.
The use of these books means:
1. That a lot of detail is removed from the ledger.
2. Book-keeping can be divided between several people.
All transactions must be recorded in one of these books before they are entered in
the ledger.
The books of prime entry are:
1. Cash Book: we have already learnt about the two-column and three-column
cash book in Chapter 4.

2. Petty-Cash Book: we have already learnt about the petty cash book (its use
and format) in Chapter 5.

3. Sales Journal: is a list of names of businesses to which credit sales were

made, the value of sales and the dates on which the sales were made. Also
referred to as sales book or sales day book. This journal is written using
invoices sent to customers.

4. Sales Returns Journal: is a list of names of businesses, the value of goods

returned and the dates on which the returns were made. Also known as sales
returns book or returns inwards book/journal. This journal is written using
copies of the credit notes sent to customers.

5. Purchases Journal: is a list of the names of businesses from which credit

purchases were made. Also called purchases book or the purchases day book.
This journal is written up using the invoices received from suppliers.

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Cambridge IGCSE Accounting – 0452

6. Purchases Returns Journal: is a list of names of businesses, the value of

goods returned and the dates on which the returns were made. Also known as
purchases returns book or the returns outward book/journal. This journal is
written up using credit notes received from suppliers.

Format of the Books of Prime Entry

Sales Journal
“Name of the Business”
Sales Journal
Date Name Invoice Folio Amount ($)
Number

Sales Returns Journal

“Name of the Business”
Sales Returns Journal
Date Name Credit Note Folio Amount ($)
Number

Purchases Journal
“Name of the Business”
Purchases Journal
Date Name Invoice Folio Amount ($)
Number

Purchases Returns Journal

“Name of the Business”
Purchases Returns Journal
Date Name Credit Note Folio Amount ($)
Number

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