(7) PRIME ENTRY BOOKS
Introduction to prime entry books There may be issues in recording the business transactions in the ledger accounts directly as they take place' Hence, before the transactions are recorded in ledger accounts, they should be recorded in a separate set of books known as ''the prime entry books.'' The prime entry books are the books in which the transactions of a business are recorded at first, according to the order in which each transaction had occurred by using a generally accepted method before recording them in the ledger accounts. Prime entry books are also named as journals, day books, and subsidiary books. It is not suitable to record all the transactions in a single prime entry book. Hence, the transactions have to be classified and recorded based on their nature and other common characteristics. Accordingly, the transactions which are similar in nature and occur recurrently should be recorded in different prime entry books. The following table shows ...