Page 52 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Chapter Four

Recording of business
FOR ONLINE READING ONLY

transactions

Introduction

Recording of transactions in the books of accounts is the initial and very critical
stage in accounting. Correctness of the first record (prime or original) in the

books of accounts for a transaction is the basis for having appropriate accounting
records. In this chapter, you will learn books of prime entry and preparation of
such books. The competencies developed will enable you to prepare books of
prime entry according to the required principles.

preparation of financial statements. The
Think use of books of prime entry ensures that

Operating a business without recording transactions are recorded promptly and

its financial transactions. accurately, minimising the risk of errors
and providing a comprehensive record
of financial activities. Daybooks are the

principal sources of transactions posted into
Books of prime entry the general ledger, which ultimately lead
Books of prime entry, also known as books to the preparation of financial statements.
of original entry or daybooks, form an Overall, books of prime entry play a crucial

essential part of the double-entry accounting role in maintaining an efficient and organised
system used by businesses to record their accounting system for any business.
financial transactions. These books serve as
the first point of entry for all the business Meaning of books of prime entry

transactions before they are posted into Books of prime entry (journals) are the
the ledger or processed further towards books of accounts that are used to record

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Student’s Book Form One

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