1. CDA COLLEGE ACC101: BOOK KEEPING II Lecture 3 Lecture 3 Lecturer: Kleanthis Zisimos

2. Lecture Topic List Books of prime entry Books of prime entry Journal Journal

3. Books of Prime Entry The Books of prime entry are the books in which we first record the transactions The Books of prime entry are the books in which we first record the transactions The main books of prime entry are The main books of prime entry are 1. Sales day book and sales return day book 2. Purchases and purchases return day book 3. Cash book 4. Petty cash book 5. Journal

4. Journal Entries and Posting A journal gives a complete record of each transaction in one place. It also shows debits and credits of each transaction. The process of recording transactions in a journal is called journalizing. A journal gives a complete record of each transaction in one place. It also shows debits and credits of each transaction. The process of recording transactions in a journal is called journalizing. A journal includes information like the date of transaction, titles of affected accounts, debit and credit amounts and explanations of the transaction. A journal includes information like the date of transaction, titles of affected accounts, debit and credit amounts and explanations of the transaction. The process of transferring journal entry information to the ledger is called posting The process of transferring journal entry information to the ledger is called posting

5. The Journal The journal is one of the books of prime entry. It is used to record any double entries which don not arise from the other books of prime entry The journal is one of the books of prime entry. It is used to record any double entries which don not arise from the other books of prime entry The format of a journal entry is The format of a journal entry is Debit Credit Debit Credit Date Account 1 X Account 2 X Account 2 X Description Description

6. Discussion question 1 Post the following transactions in the journal of the hairdressing company ‘Fiona’ Post the following transactions in the journal of the hairdressing company ‘Fiona’ 1 January. Put cash of € 2000 as capital Purchased brushes for cash € 50 Purchased brushes for cash € 50 Purchases hair driers € 150 by credit Purchases hair driers € 150 by credit 30 January. Paid rent € 300 Received € 100 from creditor Received € 100 from creditor Made a haircut for € 20 in cash Made a haircut for € 20 in cash

7. Discussion exercises More exercises from page 91 More exercises from page 91