AccountingCode 7707
Books of prime entry
What this topic asks you to be able to do
- how to handle accounting data in each of the books of prime entry: the general journal, the cash book and petty cash book, the sales journal and sales returns journal, and the purchases journal and purchases returns journal
- the procedure for posting ledger entries that originate in the books of prime entry
- what trade discount and cash discount are, and how each is dealt with in the accounts
- how the cash book fulfils two roles together: it records transactions as a book of prime entry and it also works as a ledger account for bank and cash
- the way to record receipts and payments, whether they are made in cash, by cheque, by debit or credit card, or by online or bank transfer
- why the imprest system is used for petty cash
- the way to run petty cash using the imprest system
- the benefits and limitations, for a business, of holding cash on its own premises
- the benefits and limitations of recording business transactions by hand at the point of original entry
- the benefits and limitations of recording business transactions with digital methods at the point of original entry