Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Books of Prime Entry
- This topic has 3 replies, 4 voices, and was last updated 13 years ago by Shunmas.
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- November 17, 2010 at 5:24 am #46040
am i right to say that in the books of prime entry only the petty cash book and the cash book are part of the double entry system?
thx..November 17, 2010 at 7:40 pm #70904No, it’s not true. could you explain why you think that only the petty cash book and the cash book are part of double entry ?
December 21, 2010 at 12:26 pm #70905AnonymousInactive- Topics: 0
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petty cash and cash book deals only with cash transaction it will be wrong for you to say that since you will be forgeting credit transaction
December 21, 2010 at 1:01 pm #70906Quote:am i right to say that in the books of prime entry only the petty cash book and the cash book are part of the double entry system?Anitha !
If transactions are recorded in ledger accounts as they occur, the ledgers would become cluttered and it might give a rise to errors.
Hence, different transactions are recorded in books of prime entry to avoid cluttering and making errors.
Sales Day Book, Sales Return Day Book, Purchases Day Book, Purchases Return Day Book, Cash Book, Petty Cash Book, etc. are all books of prime entry.
These books do not record the double entry but double entry will be recorded according to the the recording frequency, e.g. daily, weekly, monthly, etc.
HTH
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