IGCSE ACCOUNTING

Topic 2.3: Books of prime entry

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 Introduction
1. A book of prime entry is one in which transactions are
recorded before being entered in the ledger.
2. The books of prime entry (also called books of original
entry) are:
a. Cash book – cheques and bank deposit slips
b. Petty cash book - petty cash vouchers & receipts
c. Sales journal- sales invoices
d. Sales returns journal – your credit notes
e. Purchases journal - supplier’s invoices
f. Purchases returns journal – supplier’s credit note
g. General journal – any other transaction

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 Sales journal & Sales returns journal
1. The sales journal shows a list of the names of
businesses to which credit sales have been made, the
value of the goods sold and the date on which the
sales were made.
2. The sales returns journal shows a list of the names of
businesses which have returned goods previously
sold on credit, the value of the goods returned and
the date on which the returns were made.

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Purchases journal & Purchases returns journal
1. The purchases journal shows a list of the names of
businesses from which credit purchases have been
made, the value of the goods purchased and the date
on which the purchases were made.
2. The purchases returns journal show a list of the
names of businesses to which goods, previously
purchased on credit, have been returned, the value
of the goods returned and the date on which the
returns were made.

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 REVISION CHECKLIST
1. All transactions should be entered in a book of prime
entry before they are entered in the ledger.
2. The sales journal is written up from copies of invoices
sent to customers and the sales returns journal is
written up from copies of credit notes sent to
customer.
3. The purchases journal is written up from invoices
received from suppliers and the purchases returns
journal is written up from credit notes received from
suppliers.
4. At the end of each month the totals of the sales,
purchases and returns journals are transferred to the
sales, purchases and returns accounts, respectively.

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Practice Questions

Questions 1 to 6

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Questions 1 to 6

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 Practice Question
Question 1f
Charles
Date Details Amount Date Details Amount

Jun 1 Balance 450 Jun 13 Sales 240

b/d returns
Jun 5 Sales 464 Jun 28 Bank 441

Jun 23 Sales 200 Discount 9

allowed
Jun 30 Balance c/d 424

1114 1114

Jul 1 Balance 424

b/d

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Practice Question

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Practice Question

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 Practice Question
Question 3a
Sales Journal
Date Name Invoice No. Folio Amount

Feb 2 Kumar 6280

Feb 14 Dimuth 520

6800

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 Practice Question
Question 3a
Sales Returns Journal
Date Name Credit Note Folio Amount

Feb 20 Dimuth 110

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 Practice Question
Question 3a
Purchases Journal
Date Name Invoice No. Folio Amount

Feb 4 Mahela 720

Feb 19 Mahela 600

1320

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 Practice Question
Question 3a
Purchases Returns Journal
Date Name Credit Note Folio Amount

Feb 10 Mahela 360

Feb 21 Mahela 120

480

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 Practice Question
Question 3b
Sales
Date Details Amount Date Details Amount
Feb 28 Sales 6800
Journal

Purchases
Feb 28 Purchases 1320
journal

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 Practice Question
Question 3b
Sales Returns
Date Details Amount Date Details Amount
Feb 28 Sales 110
returns

Purchases Returns
Feb 28 Purchases 480
returns
journal

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Practice Question

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 Practice Question
Question 3b
Kumar
Date Details Amount Date Details Amount
Feb 2 Sales 6280

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 Practice Question
Question 3b
Dimuth
Date Details Amount Date Details Amount
Feb 14 Sales 520 Feb 20 Sales 110
returns

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 Practice Question
Question 3b
Mahela
Date Details Amount Date Details Amount
Feb 10 Purchases 360 Feb 4 Purchases 720
returns
Feb 21 Purchases 120 Feb 19 Purchases 600
returns

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