Principles of Accounts

Grade 10
March 2021

Books of Original Entry (Subsidiary Books) and Original Documents

Business Contents Issued When: Notes: Uses

Documents
Invoice The name and Goods sold on Trade discount is Customer
address of the credit Issued by shown as being records credit
supplier & the supplier deducted whereas purchase and
customer, the it is mentioned that Supplier records
date. Full cash discount is credit sales.
details, only allowed if the
quantities & invoice is paid
the prices of within a time limit.
goods sold.
Credit Note Name and Faulty Sometimes printed Customer
address of goods/overcharged in red/any other records returns
supplier and goods colour to outwards and
customer, date, distinguish supplier records
full details, Issued by the between an invoice returns inwards
quantities and supplier
prices of goods
returned or
overcharged
Debit Note Name and Goods not Customer checks Communication
address of satisfactory, goods & invoice medium.
supplier and wrong goods etc. for
customer, date overcharged/wrong No entries made
full details and Issued by the goods, etc.
quantities supplier or However,
(sometimes customer When the price is sometimes they
prices) of included, it is are issued in
goods returned always less trade place of an
or discount amended
undercharged invoice
Statement of Name and At the end of each Contains summary No one makes
Account address of month, by a of all transactions any entries.
supplier and supplier. Given to
customer, date, each customer Reminder to the
balance owing customer of
at the start of amount
the period, outstanding and
invoices and can also be used
credit notes to check for
 issued, erros for both.
payments
received, any
cash discounts
allowed,
balance owing
at the end of
the period.
Cheque Pre-printed Payment through Used to pay pre- Supplier:
details bank. stated sum to Counterfoil of
payee. paying in slip
Date, amount used to make
and payee have Comes in a book entry in cash
to be filled. of pre-printed book and for
cheques (Issued by discount
the bank). allowed.

Customer:
Makes uses of
the cheque
counterfoil to
make cash book
entry and
discount
received.
Receipt Goods sold by Proof of
cash, and not payment
when by cheque
(cheque act as a
receipt)
Books of Original Entry/Subsidiary Books/Prime Books

There are seven (7) books of original entry:

Sales Journal
Purchases Journal
Sales Returns Journal
Purchases Returns Journal
Cash Book
Petty Cash Book
Journal

These books are used to make records of the original documents.

Prime Books General Description Format Notes

Sales Journal/Sales A list of accounts to Date-Name-Invoice The debit entry is
Book/Sales Day which credit sales Number-Folio- made in the debtor’s
Book were made, their Amount ($) ledger account as the
value and the dates sales are recorded in
The invoice number the journal with the
pertains to the total of the invoice.
invoice issued At the end of the
month, the sales
account is credited
with the total of the
sales journal as total
credit sales for the
month.
Sales A list of the names of Date-Name-Credit Written up using
Returns/Returns the businesses, the Note Number-Folio- copies of credit notes.
Inwards book/returns value of the goods Amount The credit entries are
inwards journal returned and date simultaneously made
The credit note into the customer’s
number pertains to account.
the credit note issued At the end of the
month, the totals will
be posted to the sales
returns account.
Purchases A list of the names of Date-Name-Invoice Written up using
Journal/Purchases businesses from Number-Folio- invoices from
Book/Purchases Day which credit Amount suppliers. The
Book purchases have been supplier’s account is
made, value and date. The invoice number simultaneously
pertains to the credited with invoice
invoice received totals.
The total is posted
 into the purchases
accounts as total
credit purchases for
the month.
Purchases Returns A list of names of Date-Name Credit Written up using
Journal/Purchases businesses whom Note Number-Folio- credit notes from
Returns goods have returned Amount suppliers. The
Book/Returns to, value and date. suppliers account
outwards The credit note debited with the total
Book/Returns number pertains to from the credit note.
outwards Journal the credit note
received. At the end of the
month, the total (from
the journal) is posted
in the purchases
returns account.