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What are the Books Of Prime Entry ?

What are books of prime entry?         Books of prime entry are books that are to be maintained to record transactions as and when they occur, so that we do not forget any transactions or post them twice. Books of prime are also known as special purpose subsidiary books or books of original entry . These are some of the main subsidiary books:- -          Cash book -          Petty cash book -          Purchase day book -          Sales day book -          Purchase return day book -          Sales return day book -          Journal proper What is a cash book?         Cash book is the book in which all the transactions rel...
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What is the DOUBLE ENTRY SYSTEM ?

What is Double entry system?           This is a system through which transactions in a business involving money and money’s worth are recorded in the nominal ledger from the books of prime entry.           According to this system each business transactions will have two sides which will be equal and opposite of each other;  Debit side and a credit side . Every debit must be balanced to its credit. Rules of double entry system There are generally two sets of rules. You can follow the ones which you understand and find easy to remember the most. 1.      In this rule you need to keep in mind what a debit and a credit entry will do. A debit entry will :- n   Increase an asset n   Increase an expense n   Decrease a liability A credit entry will :- n   Decrease an asset n   Increase a liability n   Increase an income ...
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