The Books of Original Entry and Ledgers

The Books of Original Entry and Ledgers

1. Purchases Journal: (Purchases Day Book)

   • Chronological list of all credit purchases. These are complied from invoices received from creditors.

2. Purchases Returns Journals: (Purchases Returns Day Book)

   • Chronological list of all purchases subsequently returned to suppliers. These are complied with the credit notes received.

3. Sales Journal: (Sales Day Book)

   • Chronological list of all credit sales. These are complied from invoices issued by the company to debtors.

4. Sales Returns Journals: (Sales returns day book)

   • Chronological list of all sales subsequently returned to the company by customers. These are complied from credit notes issued by the company.

5. Journal: (Journal Proper)

   • Used to record entries such as the purchase or sale of fixed assets or the correction of errors.

6. Purchase Ledgers:

   • Is part of the double-entry system. These contain the individual personal accounts of a businesses credit suppliers. The main entries in the purchase ledger are posted from the purchases journals and the cashbook.

7. Sales Ledgers:

   • Part of the double-entry system. These contain the individual personal accounts of a business's credit customers. The main entries in the sales ledger are posted from the sales journal and the cashbook.

8. General Ledgers:

   • Part of the double-entry system, the ledger contains all of the impersonals accounts of the business, such as fixed assets, expenses, sales and purchase accounts.

9. Cashbook:

   • Is a book of original entry and a part of the double entry system. This contains details of every transaction that takes place using the company's bank account or cash funds.