.::L:'.

::
C~C~ I L:::c:_::vc:'J.:..'
.: ..l_ _ _ _ _...,...._ _ _ _ _ __ _ _----::::::--------B:::o::::
ok-keep
3-,~ -5,,,;,f
Book-keeping Procedures

Book-keeping Cycle:

(I) Writing in the relevant day books

(2) Posting from day books to the ledger accounts
(J) Taking a trial balance ·
(4) Adjustments made
(5) Prepare the final accounts (i.e. Trading, Profit and Loss A/C, Balance Sheet)

Books of Prime Entry/ Books of Original Entry I Day Books

(I ) Purchases Day Book (or Purchases Journal) - records all credit purchases from suppliers.
(2) Sales Day Book (or Sales Journal) - records all credit sales to customers. ·
(3) Purchases Returns Day Book / Returns Outwards Day Book (or Returns Outwards
Journal) - records returns outwards to suppliers.
(4) Sales Returns Day Book / Returns Inwards Day Book (or Returns Inwards Journal) -
records returns ~ -Suppliers. if\w<f°~ 1<tl"' c<J~
(5) Cash Book - records the receipts and payments of cash and cheques. .
(6) General Journal (or The Journal)- records unusual or infrequent types of transactions;
transactions not suited to the other books.

Hook-keeping Procedures

P.D.B
S.D.B Purchases Ledger
P.R.B
SaIes Ledger Tria Ba ance Ad.~us t men a e maI A!C

C.B
P.C.B General Ledger

Purchases Day Book (PDB)

Date From Whom Bought Invoice No. Net Amount

£

Transferred to Purchases A/C (Deb it)

.
XXX

..
Prepared by: Thein Thein Aye Page· 11

1-111
 LCCI Level- I
Book-keeping

Sales Day Book (SDB)

D ate
,_ To Whom Sold Invoice No. Net Amount
. £

Transfe rred to Sales NC (Credit)

-
XXX

Purchases Returns Day Book/ Returns Outwards Day Book (PRB)

Date To Whom Returned Credit Note

Number Net Amount
£

Transferred to Purchases Return NC (Credit)

XXX

Sa les Returns Day Book / Returns Inwards Day Boo k (SRB)

Date By Whom Returned Credit Note

Number Net Amoun t
£

Transferred to Sales Return NC (Debit) XXX

Journa l

Date Particular
--
Fo Debit Credit
£ £
The name of the account to be debited XXX
The name of the account to be credited
XXX
(Narrative for transaction)

I
Notes of Journal

• Journal Cl? G6fC\,l)C Debit Side Cl? :l•6)c.;;q:ol 11

• Credit Side Cl? G6j=C\,l)C Margin 7~ §')~'°61.:ol 11
· mount 7-,° Creult
·•· Amount 07,
0
• Journal G'):C\,l)C Deb'1! A O
Oji~O 6)8~0 11
• Journal Cl? (,8a5o>c <ya5~ (Narrative) G6):ol 11
• Journal Cl? 8a5C\,ljc Particul ar o:io,ir-hil8a5o71,

Prepared by: Thein Thein Aye

Page - 19
 LCCI Level-I
Book-keer

The uses of the journal

The· main uses of the journal are to mB.ke diary notes on:
(I) The purchase and sale of fixed assets on credit
(2) Opening entries, i.e. the opening of a new set of books
(3) Other non-regular transactions
(4) The correction of errors

T ra dC o·ISCOUn t ( \lfi\C:Gai):f'r~OO~CIGCW?GO:C\j>OJeC:
o o o o o or,: o )

It is the reduction from list price. Trade discount will not appear in the ledger as discount
account.

Explain why Trade I Quantity Discount is offered?

Trade Discount is offered for bulk/ large quantity purchases.

C(), ,$. CI ,$. GioY.Jt

Day Book "IP:sC r;;q:11m~c C C
Trade Discount 1t0?~::)J'J: 01>".lClD"( Gfi\:ljO?fi\0~
C
I vy. e:: .

c/: Trade Discount :)J~ C\Jc0 rcpoofi\t:"IP:~ or;;uTGCD?ol11

e.g. £
Lis: Price (1rqt :Gil/J:i ~:) 150
(-) Trade Discount (I 5)

Day Book 3 r;;q:';)~61~01>".lClD 135

Cash Disco>Jnt
O?CXY.J:G:)J'J3.l~<j> ()')'J(\)3.lo;JC: 3.IGt:d:~<j> ;;o UG:)J'JGC:;-ly GC~GU!0? ffit3 C!J
C' C' OC' C' ~C' C' C' 0 <'QC'\
(
:>.) 0J'f
It is the reduction if pay within a specified time. Cash discount appears in the ledger as
di scount accounts.

Explain why Cash/ Settlement Discount is offered/

Cnsh Discount is a discount offered to encourage early settlement or settlement on time for
monies owed.

Cash Book~ r;;~@~r;;= Discount Allowed 'l'~ Discount Received CJ?.::D~ Cash Discount
[; c ~ O r;:;::: C C h D'
'IP: tJ©t<?3:)J~C
11 C?, GC:;-l<;:
O C C C C , C
as 1scount O?.::D~ C\J(.l.)f1P©'J61C:©'J3ruoo '.l3::x,{
.
D1scount · [; C ')' 0 C C
Account l/P:3.l('.:1© Go1 G<\'C\J'.W~11
5

"P'"P'"P'"P''P''l''f"P'"P''l'"P''P'"P''f'P'

J q~ L-- - , _ co c
ournaI If ::D m oX?c-p u:~
C 0 C O C
count'IP::xi.G.§.~c ~m '\} mG.§.61_<1~11

Journal lj'J Debit :x,o-S~t-p Ledger Account qro;:0: Debit

Journal lj'J Credit ~ ~ ~ :x,o-S~~-p Ledger Accoun t},-~~: Credit

Prepared by: Th ein Thein Aye

Page- ,