Glossary · Also called Book of original entry
Book of prime entry
The place a transaction is first recorded before it goes into the ledger.
What it means
A book in which transactions are initially recorded from source documents before being posted to the ledger.
Example
The sales day book, purchases day book, cash book and journal are books of prime entry.
Why it matters
They organise transactions so ledger posting is accurate and efficient.
In practice
A book of prime entry is where a transaction is first listed, before double entry is made in the ledger. It is also called a book of original entry or a day book. The main ones are the sales day book, purchases day book, returns day books, cash book, petty cash book and general journal.
Periodically the totals are posted to the ledger. For instance, a sales day book totalling RM5,600 for the week is posted as one debit to the sales ledger control account and one credit to sales. Each individual customer is posted separately. This keeps the ledger tidy and reduces posting errors.
Students often confuse the book of prime entry with the ledger. The book of prime entry is a list of similar transactions in date order. The ledger is where they are sorted by account, where the double-entry debits and credits are recorded, and where they are later balanced.
If you are unsure which book a transaction belongs in, one of our teachers can go through a set of source documents with you. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 2.3 Books of prime entry (page 12).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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