Question

Write the list of Essential book requried for baking transaction (minimum five)

Answer 1

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.

Books of prime entry OR books of original entry are books where transactions are first recorded. These may or may not be part of the double entry system.

The main books of prime entry are:

Sales day book

Purchase day book

Sales returns day book

Purchases returns day book

Bank Book

Cash Receipts Book

Cash Payments Book

Petty Cash Receipts Book

Petty Cash Payments Book

Journal

Answer 2

Books that are essential for banking transactions.

1. Cash Book: The cash book Prepared by the commercial banks is called a bank cash book. These are used for recording all the cash receipts and payments. Its balance represents the cash and cash equivalents present with the firm or bank.
2. Day Book: Bank day book or also called a Bank journal is the daily transactions recording book of the bank. All the day to day based transactions is recorded in this book.
3. Ledger Section: A ledger balance is the checking account balance at the beginning of a given day. Ledger is the books created to record and check the balances or any discrepancy.
4. Current Account Ledger: A ledger balance of the current account is a balance in an account at the starting of each day, also known as the current balance. It includes all deposits or transactions that were posted from the previous night after the banking hours, whether any money has been collected or disbursed.
5. Savings Bank Ledger: A ledger balance of a savings account is computed by a bank in this ledger at the end of each day that including all withdrawals and deposits that occurred on that particular day to calculate the total amount of money in a bank account.

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