The books of prime entry and the two-column and three-column cash book, the imprest petty cash system, and reconciling the cash book with the bank statement.
Books of prime entry
Before a transaction reaches the ledger it is first recorded in a book of prime entry (a book of original entry). Each handles one type of transaction.
| Book of prime entry | Records | Source document |
|---|---|---|
| Sales journal | Credit sales | Sales invoice |
| Purchases journal | Credit purchases | Purchase invoice |
| Sales returns journal | Returns inwards | Credit note issued |
| Purchases returns journal | Returns outwards | Credit note received |
| Cash book | Cash and bank receipts/payments | Receipts, cheque counterfoils |
| Petty cash book | Small cash payments | Petty cash vouchers |
| General journal | Anything else (opening entries, corrections, year-end transfers) | Journal voucher |
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