Part C THE USE OF DOUBLE ENTRY AND ACCOUNTING SYSTEMS Part C Chapter 4: Sources, records and books of prime entry Chapter 5: Ledger accounts and double entry Chapter 6: From trial balance to financial statements Chapter SOURCES, RECORDS AND BOOKS OF PRIME ENTRY Learning Objectives The role of source documents Sales and purchase day books Cash books The role of source documents Source documents Business transactions are nearly always recorded on a document These documents are the source of the information in the accounts Such documents include the following: •Quotation •Sales order •Purchase order •Invoice •Credit note •Debit note •Goods received note The role of source documents Books of prime entry The source documents are recorded in books of prime entry The role of source documents Journal: Journals are used to record source information that is not contained within the other books of prime entry They record the following: •Period end adjustments •Correction of errors •Large / unusual transactions Sales and purchase day books Sales and purchase returns day books summarise goods returned to/by the business Cash book Cash receipts and payments are recorded in the cash book Cash payments are recorded in a similar way Cash book 10 Cash books Under the ‘imprest system’: $ Reimbursement is made equal to the voucher payments to bring the float back up to the imprest amount 11 [...]...Cash books Under the ‘imprest system’: $ Reimbursement is made equal to the voucher payments to bring the float back up to the imprest amount 11 ... C Chapter 4: Sources, records and books of prime entry Chapter 5: Ledger accounts and double entry Chapter 6: From trial balance to financial statements Chapter SOURCES, RECORDS AND BOOKS OF PRIME. .. note •Goods received note The role of source documents Books of prime entry The source documents are recorded in books of prime entry The role of source documents Journal: Journals are used to record... other books of prime entry They record the following: •Period end adjustments •Correction of errors •Large / unusual transactions Sales and purchase day books Sales and purchase returns day books