Books of Original Entry and Division of Ledger

Cash Discounts

Cash Discount (Prompt Payment Discount, Settlement Discount) – Definition, Calculation and its Types: Cash discount sometimes called prompt payment discount. It is the difference between the…
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Cash Book

Cash Book – Definition, Explanation, Preparation and its Types: Cash book is used to record all cash transactions. Cash transactions not only involve receipt and…
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General Journal

General Journal or Journal Proper – Definition and Explanation: Majority of all business transactions pass through books of original entry before being posted to ledgers. General…
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Return Outwards Journal

Return Outwards Journal or Return Outwards Day Book or (Purchase Returns) – Definition and Explanation: Return outwards journal sometimes call return outwards day book or…
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Return Inwards Journal

Return Inwards Journal or Return Inwards Day Book or (Sales Returns) – Definition and Explanation: Return inwards journal sometimes called return inwards day book or…
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Purchases Journal

Purchases Journal or Purchases Day Book – Definition and Explanation: Purchases of goods may be on cash or on credit basis. Purchases journal sometimes called…
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Sales Journal

Sales Journal or Sales Day Book – Definition and Explanation: The sales of goods may be on cash or on credit basis. Cash sales are…
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Books of Original Entry

Books of Original Entry or Books of Prime Entry or Day Books and Journal – Introduction and Definition: A business must ensure that its accounting…
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