Books of prime entry: purchases journal, sales journal, sales returns journal, purchases returns journal, general journal, three column cash book
Books of prime entry are the first place a business records a transaction. Each book handles a specific type of transaction, such as credit sales or cash payments.
Real World
A small café selling coffee on credit to a local office would record each credit sale in the sales journal daily, keeping those entries separate from cash sales recorded in the cash book.
Exam Focus
State which book of prime entry is used before posting to ledgers — examiners often award a method mark for correctly identifying it.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
How well did you know this?