What are the book of accounts?
Book of Accounts is a book where you record all the financial transactions of the business.
Entries in the books of accounts are required to be supported with documents such as official receipts, sales invoices, vouchers and other related supporting documents evidencing the business transactions occur.
What are the 5 basic types of accounts?
Accounting Categories and Their Role
There are five main types of accounts in accounting, namely assets, liabilities, equity, revenue and expenses. Their role is to define how your company’s money is spent or received. Each category can be further broken down into several categories.
What is the purpose of books of prime entry?
A journal is known as primary book. Books of Prime Entry are a more efficient variation on double-entry accounting. This makes the cash receipts and cash payments journal essential for reconciliation. Books of prime entry OR books of original entry are books where transactions are first recorded.
Why journal is called a book of prime entry?
The sub-division of Journal is called books of original entry or books of prime entry or day books. The word journal is derived from the French word “Jour” which means “day”, so journals are also known as day books due to the fact that transactions are recorded on daily basis.
Is the journal a book of prime entry?
A book or record in which certain types of transaction are recorded before becoming part of the double-entry book-keeping system. The most common books of prime entry are the day book, the cash book, and the journal.
How do you maintain books?
Dos and Don’ts for Taking Care of Your Personal Books at Home
- DO keep your books in a stable, moderate environment.
- DO keep your books away from direct sunlight and other high intensity light.
- DO clean your books regularly by dusting.
- DO shelve your books upright, and support them with bookends so they won’t slump or become misshapen.