CDA COLLEGECDA COLLEGE

ACC101: BOOK KEEPING IIACC101: BOOK KEEPING II

Lecture 3Lecture 3

Lecturer: Kleanthis Zisimos Lecturer: Kleanthis Zisimos

Lecture Topic ListLecture Topic List

Books of prime entryBooks of prime entry JournalJournal

Books of Prime EntryBooks of Prime Entry

The Books of prime entry are the books in The Books of prime entry are the books in which we first record the transactionswhich we first record the transactions

The main books of prime entry areThe main books of prime entry are

1.1. Sales day book and sales return day bookSales day book and sales return day book

2.2. Purchases and purchases return day bookPurchases and purchases return day book

3.3. Cash book Cash book

4.4. Petty cash book Petty cash book

5.5. JournalJournal

Journal Entries and PostingJournal Entries and Posting

A journal gives a complete record of each transaction in one A journal gives a complete record of each transaction in one place. It also shows debits and credits of each transaction. place. It also shows debits and credits of each transaction. The process of recording transactions in a journal is called The process of recording transactions in a journal is called journalizing.journalizing.

A journal includes information like the date of transaction, A journal includes information like the date of transaction, titles of affected accounts, debit and credit amounts and titles of affected accounts, debit and credit amounts and explanations of the transaction.explanations of the transaction.

The process of transferring journal entry information to the The process of transferring journal entry information to the ledger is called postingledger is called posting

The JournalThe Journal

The journal is one of the books of prime The journal is one of the books of prime entry. It is used to record any double entry. It is used to record any double entries which don not arise from the other entries which don not arise from the other books of prime entrybooks of prime entry

The format of a journal entry isThe format of a journal entry is

Debit CreditDebit Credit

Date Account 1 XDate Account 1 X

Account 2 XAccount 2 X

DescriptionDescription

Discussion question 1Discussion question 1

Post the following transactions in the Post the following transactions in the journal of the hairdressing company ‘Fiona’journal of the hairdressing company ‘Fiona’

1 January. Put cash of 1 January. Put cash of € € 2000 as capital2000 as capital

Purchased brushes for cash Purchased brushes for cash € € 5050

Purchases hair driers Purchases hair driers € € 150 by credit150 by credit

30 January. Paid rent 30 January. Paid rent € € 300300

Received Received € € 100 from creditor100 from creditor

Made a haircut for Made a haircut for € € 20 in cash20 in cash

Discussion exercisesDiscussion exercises

More exercises from page 91More exercises from page 91