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..
thx..
ACCA Forums
FABooks of Prime Entry
No, 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 ?
15y ago#2petty 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
@anitha89
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
Quote:
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
Sign into reply to this topic.