Professional Documents
Culture Documents
The Books of Prime Entry
The Books of Prime Entry
The Books of Prime Entry
/ JOURNALS
ACCOUNTING CYCLE
Source Documents
Ledgers Accounts
Trial Balance
Adjustments
Financial Statements
Types of Books of Original
Entry
Sales Journal
Purchases Journal
Return Inwards Journal
Returns Outwards Journal
Cash Book
Cash Payments Journal & Cash
Receipts Journal
General Journal
Purpose of Using Journals
It is to ease the burden of recording
transactions by one clerk or person.
By using journals and ledgers a business is
able to have more people involved in the
recording of business transactions, and this is
in fact more practical when the volume of
business transactions increases to a very high
level.
While allowing for specialisation of duties, it
also allows for better internal controls since
more people are involved.
SALES JOURNAL
Records all CREDIT sales of goods
Source document > sales invoice
What is a Sales Invoice ?
It is a supporting business document prepared
by the seller, showing the amount to be paid by
the customer to the supplier.
This document will be used as a basis to record
sales in the business book of accounts
EXAMPLE:
Jan 14, 2008 Credit sales to Masitah
RM4,800 (invoice no. A2223)
Jan 15, 2008 Issue invoice to Amran
RM2,300 (invoice no. A2224)
Jan 18, 2008 Sold goods to Saloma on
credit RM1,200 (invoice no. A2225)
SALES JOURNAL (cont..)
Date Particulars Invoice No: Folio Amount
08,Jan
14 Masitah A2223 SL 4,800
15 Amran A2224 SL 2,300
18 Saloma A2225 SL 1,200
Transferred to GL 8,300
Sales Account
PURCHASES JOURNAL
Records all CREDIT purchases of goods
Source document > purchase invoice
What is a Purchases Invoice ?
It is a business document received by the buyer
from the seller stating the amount to be paid for
the purchases made.
EXAMPLE:
Jan 5, 2008 Received invoice from Yong
Sdn Bhd RM16,000 (invoice no. B4567)
Jan 7, 2008 Purchases on credit from
Dong Dong RM13,500 (invoice no.
A1111)
Jan 9, 2008 Bought goods from
Huafang Trading RM12,200(invoice no.
H1718)
PURCHASES JOURNAL (cont..)
Date Particulars Invoice No: Folio Amount
08,Jan
5 Yong Sdn Bhd B4567 PL 16,000
7 Dong Dong A1111 PL 13,500
9 Huafang H1718 PL 12,200
Transferred to GL 41,700
Purchases Account
RETURN INWARDS JOURNAL /
SALES RETURNS JOURNAL
Records goods returned by the customer to
the business
Source document > credit note (issued to
customer)
What is a Credit Note ?
A document that evidences an allowance made for
goods returned or an adjustment to the original invoice.
This document is issued by the business to the customer
indicates thar the customer’s liability to the business is
reduced by the amount stated in the credit note.
EXAMPLE:
Jan 12, 2008 Issue credit note to
Salman RM500 (credit note no. A222)
Jan 17, 2008 Received debit note from
HOHO Ent. RM1,100 (debit note no.
C112)
Jan 20, 2008 Maheroon returned goods
worth RM300 (credit note no. A223)
RETURN INWARDS JOURNAL /
SALES RETURNS JOURNAL (cont..)
Date Particulars Note No: Folio Amount
08,Jan
12 Salman A222 SL 500
17 HOHO Ent. C112 SL 1,100
20 Maheroon A223 SL 300
Transferred to GL 1,900
Return Inwards Account
RETURN OUTWARDS JOURNAL /
PURCHASES RETURNS JOURNAL
Records goods returned to suppliers
Source document > credit note
(received from supplier)
EXAMPLE:
Jan 10, 2008 Received credit note from
Yong Sdn Bhd RM1,200 (note no. D234)
Jan 12, 2008 Issue debit note to Karim
RM400 (note no. B224)
Jan 16, 2008 Return goods to Dondon
Trading worth RM600 (note no. B225)
RETURN OUTWARDS JOURNAL /
PURCHASES RETURNS JOURNAL
Date Particulars Note No: Folio Amount
08,Jan
10 Yong Sdn Bhd D234 PL 1,200
12 Karim B224 PL 400
16 Dondon Trading B225 PL 600
Transferred to GL 2,200
Return Outwards
Account
What is Debit Note ?
Document sent to a supplier showing
an allowance to be given for
unsatisfactory goods.
CASH PAYMENTS JOURNAL
Records all cash and/or payments made
by a business
Source documents
> receipts
>cheques butt
>bank-in slips
EXAMPLE:
Jan 2, 2008 Draw out cheque RM4,500 and
put it in cash till (cheque no. CIB223678)
Jan 25, 2008 Paid Yong Sdn Bhd the
amount owed RM2,400 (cheque no.
CIB223679)
Jan 5, 2008 Bought goods from Gaga
Trading paying by cash RM3,000
CASH PAYMENTS JOURNAL
Amounts (RM)
Date Cheque No. Account Payment Folio Bank Cash Disc. Creditors Purchases Other
Debited Voucher Cr Cr Received Dr Dr Account
No Cr Dr
2008
Jan
2 CIB223678 Cash GL 4,500 4,500
25 CIB223679 Yong S/B PL 2,400 2,400
5 Purchases GL 3,000 3,000
Amounts (RM)
Date Cheque No. Account Official Folio Bank Cash Disc. Debtors Sales Other
Credited Receipt Dr Dr Allowed Cr Cr Account
No. Dr Cr
2008
Jan 1 MBB222456 Capital GL 20,000 20,000
6 MIM566778 Masitah SL 4,704 96 4,800
9 Sales GL 690 690