It has already been established that the use of subsidiary books is both desirable and of benefit to the business. The subsidiary books already covered in previous modules, namely, the sales day book, the purchases day book, the returns inwards and the returns outwards day books, are books of ‘original entry’ where the details of the original documents are first entered before being posted to the double entry accounts in the various ledgers. This procedure assists and improves efficiency in the various accounts departments. By the use of the subsidiary books already covered, it can be seen that each transaction is first entered in a book of ‘original entry’, sometimes referred to as a book of ‘prime entry’, before being posted to the ledgers.
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