Livestock Economics, Marketing and Business Management

DIFFERENT BOOKS USED IN ACCOUNTANCY

Journal

• Journal is the primary or original book of entry in which all transactions are recorded in the form of ‘entries’.
• These entries are entered in the order of their happening of occurrence in a chronological order. From these journals, entries are transferred to ledger.

Ledger

• It is a book of final entry wherein the transactions that are finally entered in Memorandum book or journals are finally entered in ledger.
• It is also called the ‘Principal Book of Accounts’.
• Transactions relating to different persons are recorded separately in the name of each person in a ledger.

Cash book

• This is an account book where only cash transactions i.e., both receipts and payments of cash are recorded.
• Purchase book or Purchase Day book or Daybook of purchase, Bought Daybook, Invoice book, Credit Purchase book, Purchase journal, Purchases register
• This book records only credit purchase of goods in which trends deals.

Sales book or Daybook of sales or Sales daybook

• In this book only credit sales of goods dealt by the traders are entered.

Purchase returns book

•  It contains the records of returns of goods purchased by the trader for which no cash is received.
• This happens when the goods are purchased but, the purchased goods are;
  • Defective
  • Damaged during transit
  • Qualities delivered or received may not agree with invoice
  • The price charged may be too high
  • Goods may have been received quite later
  • Substandard
  • Terms and conditions may not be suitable

Sales returns book

• It records the goods returned by customers out of the sales already made and for which no cash is paid.

Bills payable book

• In this book bills passed or pronotes passed or accepted are recorded.

Bills receivable book

• In this book bills already drawn or acceptance received are entered.

Journal Proper

• This is the journal in which (this is like miscellaneous journals) those entries are entered, which cannot be entered in any of the above listed subsidiary journals or books.