Week 2 Reading Material
Week 2 Reading Material
Week 2
Books of
Prime entry
Journal
Book of prime entry
A book to used to list all transactions of a similiar nature before they are
posted in the ledger,
Books of prime entry :
Financial sales journal
sales return journal
transaction
purchase journal
record in book of purchase return
prime entry journal
cash book
post to ledger journal
account
it shows that there is a additional step betweern the financial transaction and
the ledger account
02
Sales
When a business makes a credit sale, an invoice is issued to the customer. This invoice serves as
confirmation of the goods or services provided by the business. It also specifies the amount owed
by the customer and the payment deadline.
Once the invoice is issued, the transaction is recorded in the sales journal, which is used to
document all credit sales made by the business. This ensures that every credit sale is properly
tracked and accounted for in the company’s records.
02
Sales Return
When a credit sale is returned, a credit note is issued to the customer. This document
specifies the amount of the return and deducts it from the amount owed by the customer.
Once the credit note is issued, the return is recorded in the sales returns journal,
which is the book of prime entry used to document all goods returned by credit
customers.
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Sales journal
Sales Return
02
Purchase
When a purchase is made on credit, an invoice is received from the supplier. This invoice serves as
confirmation of the goods or services provided and specifies the amount owed by the business
along with the payment deadline.
All invoices received from suppliers are recorded in the purchases journal, which is the book of
prime entry used to document all credit purchases.
02
Purchase Return
When a purchase is made on credit, an invoice is received from the supplier. This invoice serves as
confirmation of the goods or services provided and specifies the amount owed by the business
along with the payment deadline.
All invoices received from suppliers are recorded in the purchases journal, which is the book of
prime entry used to document all credit purchases.
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Thank You
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