Double-entry Bookkeeping System - Double Entry Example

Double Entry Example

In this example the following will be used:

Books of prime entry (Books of original entry)

• Sales Invoice Daybook (records customer invoices)
• Bank Receipts Daybook (records customer & non customer receipts)
• Cash book
• Return inwards day book
• Return outwards day book
• Purchase Invoice Daybook (records supplier invoices)
• Bank Payments Daybook (records supplier & non supplier payments)

The books of prime entry are where transactions are first recorded. They are not part of the double-entry system, but may be expanded by the computer as a debit to one account and a credit to another account. For example, a cash receipts transaction may cause a debit (increase) to a cash account and a credit (decrease) to an accounts receivable account.

Ledger Cards

• Customer Ledger Cards
• Supplier Ledger Cards
• General Ledger (Nominal Ledger)
• Bank Account Ledger
• Trade Creditors Ledger
• Trade Debtors Ledger