A prime entry record (or book of prime entry) is a book in which amounts that a company receives and spends are first recorded before total amounts are entered in ledgers.

These records consist of:

The cash book: this records amounts paid into and out of the bank account
The petty cash book: this records small amounts of cash paid for day to day expenses, such as buying postage stamps and teas or coffee for the office.
The sales day book: sales invoices issued to credit customers
The purchases day book: purchase invoices received from suppliers
The journal: where adjustments, such as correcting errors, are first recorded.

Several books of prime entry exist, each recording a different type of transaction:

Sales day book (credit sales)
Purchase day book (credit purchases)
Sales return day book (returns of goods sold)
Purchase return day book (returns of goods bought)
Cash book (all bank transaction)
Petty cash book (all small cash transaction)

The sum total of the day's transactions is recorded in the accounting ledgers of the company. This is done in a 'double entry' format.

	Created by lorenzobellentan about 9 years ago

how each book of prime entry is complited

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