Books of prime entry (books of original entry) are where transactions are recorded first, before posting to the ledger.
They are the sales journal, purchases journal, sales returns and purchases returns journals, the cash book, the petty cash book and the general journal. Grouping similar transactions makes the ledger tidier.
Remember
- Prime entry = the first record, before the ledger.
- Includes the sales/purchases journals, cash book and general journal.