Theory question 101
Books of Original EntrySection A – Theory of Financial Accounting (answer two questions only from this section)
1. (a) What are books of prime entry? (b) List any four books of prime entry? (c) State four uses of the General Journal.
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(a) Books of prime (original) entry are the books in which transactions are first recorded from source documents before being posted to the ledger.
(b) Any four: sales day book; purchases day book; returns inwards book; returns outwards book; cash book; petty cash book; journal proper.
(c) Any four: opening entries; purchase or sale of fixed assets on credit; correction of errors; transfers between accounts; closing entries; writing off bad debts; adjustments such as depreciation; purchase or sale of a business.
Prime entry comes before the ledger.