The commonly used books of original entry are:
Sales Journal
–
for credit sales
Purchases Journal
–
for credit purchases
Returns Inwards Journal
–
for sales returns
Returns Outwards Journal
–
for purchases returns
Cash Receipts Journal
–
for cash receipts
Cash Payments Journal
–
for cash payments
General Journal
–
for other items
Illustration 1
A General Journal
Date
Accounts & explanation
Ref
Debit
Credit
3.4
POSTING
Transfer journal entries to ledgers
Ledgers: A summary, by account, of all transactions affecting that account
The different types of ledgers most business use are:
Sales Ledger
–
This is for customers’ personal account
Purchases Ledger
–
This is for suppliers’ personal account
General Ledger
–
This contains the remaining double-entry accounts, such as those
relating to expenses, fixed assets, and capital.
