For now, the basic Books Of Accounts a beginner/bookkeeper must know are the Books of Original Entry and the Books of Final Entry.
The Book of Original Entry is called Journal, while the Book of Final Entry is called Ledger.
Actually, these books may come in a bounded book format or loose-leaves, or computerized form.
Journal is called the book of original entry because it is where a bookkeeper first record the original business transaction, then afterwards the bookkeeper finally record the business transaction in the book of final entry namely, Ledger.
The Journals has many kinds, the contents of which are depending on the nature of the business transactions and events. Thus, journals may come as general journal or special journals.
The kinds of journals are the following:
- General Journal
- Purchases Journals or Purchase Book
- Cash Payments Journal, or Cash Disbursements Book
- Sales Journal, or Sales Book
- Cash Receipts Journal or Cash Receipts Book
- Petty Cash Book
The kinds of ledgers are as follows:
- General Ledger
- Subsidiary Ledger
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