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  • Day Books Introduction

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    Bilal Gouri
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    Day books are books of prime entry that record routine transactions using single-entry bookkeeping. They include sales day books, purchase day books, returns day books, cash receipt books, cash payment books, and petty cash books. The purpose of books of prime entry is to initially record all transactions, produce lists of similar transactions to account for totals rather than individual transactions, and reduce the number of accounting entries and chances of errors or fraud. All day books use single-entry accounting except the cash book, which combines a cash receipt book and cash payment book using double-entry accounting.

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    ACCA FA1 CHAPTER #8

    Original Title

    Day books Introduction

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    Day books are books of prime entry that record routine transactions using single-entry bookkeeping. They include sales day books, purchase day books, returns day books, cash receipt books, cash payment books, and petty cash books. The purpose of books of prime entry is to initially record all transactions, produce lists of similar transactions to account for totals rather than individual transactions, and reduce the number of accounting entries and chances of errors or fraud. All day books use single-entry accounting except the cash book, which combines a cash receipt book and cash payment book using double-entry accounting.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    60 views2 pages

    Day Books Introduction

    Uploaded by

    Bilal Gouri
    Day books are books of prime entry that record routine transactions using single-entry bookkeeping. They include sales day books, purchase day books, returns day books, cash receipt books, cash payment books, and petty cash books. The purpose of books of prime entry is to initially record all transactions, produce lists of similar transactions to account for totals rather than individual transactions, and reduce the number of accounting entries and chances of errors or fraud. All day books use single-entry accounting except the cash book, which combines a cash receipt book and cash payment book using double-entry accounting.

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    © All Rights Reserved
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    Day books Introduction

    Tuesday, March 22, 2022 11:41 AM

    Books of prime entry are of two types


    1. General Journal
    2. Day Books
    In General Journal we record unusual transactions and it follows double entry book keeping, Where
    as in day books we record routine transactions and it follows single entry book keeping

    You cannot record a same transaction in both books.

    Purpose of Books of prime entry:


    ⃝ All transactions are initially recorded in books of prime entry or books of original entry
    ⃝ Producing a list of similar transactions means that the periodic total can be accounted for rather
    than each individual transaction
    ⃝ This reduces the no of entries in an accounting system and so reduces the chances of errors and
    fraud
    ⃝ Several books of prime entry exists each recording a different type of transaction

    Day Books Source Documents


    1. Sales day book / Sales Journal Sales invoice
    2. Purchase day book / Purchase Journal Purchase invoice
    3. Sales return day book / Return inwards book Credit note sent
    4. Purchase return day book / Return outwards book Credit note received
    5. Cash receipt book (cash at bank) Receipt
    6. Cash payment book (cash at bank) Receipt
    7. Petty cash book (cash in hand) Petty cash voucher

    All Day books are part of single entry EXCEPT Cash book
    CASH BOOK

    Cash Receipt Book + Cash Payment book


    (Single Entry) (Single Entry)

    A-4 Page 1
    A-4 Page 2

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