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  • Books of Prime Entry

    are books in which

    business transactions are first recorded before

    they are posted to the


  • A journal is a book of accounting entries where transactions are recorded chronologically. The journal is also called a day book, a book of prime entry or a book of original entry.

  • What are

    the types

    of books

    of prime

    entry /

    books of



    Special Journals

    Purchases Journal records all credit purchases of goods meant for resale. (Source documents used: invoices received)

    Sales Journal for recording sales of goods on credit. (Source documents used: invoices, sales invoices)

    Returns Outwards Journal / Purchases Returns Journal for recording returns of goods previously purchased on credit. (Source documents used: Credit notes received)

    Returns Inwards Journal for recording returns of goods previously sold on credit (Source documents used: Credit notes sent)

  • For recording:

    1. Opening entries

    2. Closing entries

    3. Sale and purchase of fixed asset on credit

    4. Correction of errors, adjusting entries, and others not recorded

    in other books of prime entry.

  • For recording cash transactions involving Cash and Book Accounts.

  • What are the

    advantages of

    using special


    Similar transactions are recorded into one book in order of date (e.g. credit sales of goods only into the Sales Journal and so on).

    Unnecessary detail in the ledger is cut down as only totals are posted to the ledger.

    Use of special journals provides an important middle step between source documents and the ledger accounts

  • Call/SMS - 81356556

    Website www. accounting.edu.sg