Accounting – Books of Accounting
We were talking about the primary books of accounting. These were listed as:
- Cash / Bank Book
- Purchase Register
- Sales Register
- Returns Registers
- The Journal Register
- Debit Note Register
- Credit Note Register
Why were these primary? Because the first entry came into them. They are also known as the books of prime entry.
So what really are secondary books?
The main secondary book of accounting is the general ledger. This is used as a summary of transactions, and is used to draw up the trial balance.
In some businesses, the accountants maintain separate customer and vendor ledgers, which again become secondary books of accounting.
There is another school of thought, not so popular, and it also confuses quite a bit.
This thought says – The main books of accounts are the Cash Book and General Ledger of any business. All other books like,sales and purchase books, day book, stock register, ledgers of individual customers, petty cash register, which provide data for entry into the main books are called ‘Secondary Books of Account.’
Somehow, I do not endorse this school of thought.
There is a great paper on this from the University of Glasgow. You can access it from the link below:
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