Books of Account

Books of Prime Entry.

Books of prime entry are the initial accounting records where business transactions are first recorded before they are transferred to the general ledger. They are also known as "journals." The purpose of these books is to provide a chronological record of transactions, which makes it easier to later transfer the information into the general ledger.

Cash Book 

‘T’ form cash book contains two sides: the left-hand side means the debit side and the right-hand side means the credit side. The primary book where transactions regarding cash receipts and payments are recorded in chronological order of dates with explanations and balance is drawn at the end of the day or a particular period is called cash book.

Sales Day Book (Sales Journal)

A book in which non-cash sales are recorded with details of a customer, invoice, amount, and date; these details are later posted to each customer's account in the sales ledger.

Purchase Day Book (Purchase Journal)

entry in which all the transactions relating to only credit purchases are recorded. Cash purchases do not find a place in the purchase day book as they are recorded in Cashbook. At the end of every month's purchase, the daybook is totaled.

Sales Returns Day Book

When a customer returns goods it has bought from a business a credit note is issued by the business and details are recorded in the sales return daybook.

Purchase Returns Day Book

When a business returns goods it has purchased on credit it receives a credit note from the supplier and records this in the purchases returns daybook.

Journal 

A journal is a record of financial transactions in order by date. Traditionally, a journal has been defined as the book of original entry.

Ledgers

Cash Book

Debtors Ledger

This is known as customers ledger or Sales Ledger

Creditors Ledger

Is known as Suppliers ledger or Purchases Ledger

General Ledger

 is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing each type of asset, liability, equity, revenue, and expense.

Cashbook is a book of prime entries as well as a ledger. all the other books are either books of prime entry or ledgers.

Basically, bookkeeping is the process of recording and organizing a business’s financial transactions, and a bookkeeper is a person responsible for that process. Bookkeeping is the primary way business owners can figure out if their business is profitable: keeping an eye on your numbers lets you identify financial challenges early on and address them before they blossom into full-fledged crises. Bookkeeping also helps you identify areas of profit expansion—areas you might not have noticed without clear financial reports you can interpret easily.

In general, a bookkeeper records transactions sends invoices, makes payments, manages accounts, and prepares financial statements. Bookkeeping and accounting are similar, but bookkeeping lays the basis for the accounting process accounting focuses more on analyzing the data that bookkeeping merely collects.

Other books of prime entry may include the payroll journal. The choice of books of prime entry used by a business depends on the size and nature of its operations.