how to identify books of prime entry
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Answer:An alternative introduction is under the journal entry. A journal is known as primary book. Books of Prime Entry are a more efficient variation on double-entry accounting. In basic double entry, a double entry is made in the general journal, which is posted in the general ledger accounts. Originally, the Venetian method also suggested a preceding diary step, which makes sense as no thinking is required in double entry, so it may have been faster. In a manual system, books of prime entry act as the speed entry step: instead of trying to remember which accounts to debit and which to credit, and writing the names down for each entry for each transaction in the general journal, the general journal is reserved for infrequent accrual entries; the more frequent cash entries, and the most frequent accrual entries are divided into specialized journals of cash receipts and cash payments; credit sales journal and credit purchases journal (credit means 'on credit' here); and for medium frequency accrual entries, sales returns and purchase returns journal. Apart from not having to write account names each time, the column layout in these specialized journal help systemize the double entry rules; most of them can be totaled at the end of each month to provide monthly entries into control account ledgers, as well as reconciliation with summary monthly totals when a schedule of subsidiary ledger accounts is created. Cash reconciliation also is a monthly task, which is made easier by tracking with numbered transactions such as numbered cheque books where cheque numbers can be entered in the cash payments journal; for tracking cash receipts, it is recommended banking occurs daily so that end of month bank reconciliation is easier. Bank reconciliation involves looking at outstanding items from the last reconciliation then seeing which of these occurred in this period's bank statement; then a search is made for unpresented cheques , and unrecorded receipts, and then payments and receipts that occurred through the bank and not through the business. This makes the cash receipts and cash payments journal essential for reconciliation.
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