- Identification
Recognize and analyze financial transactions, preparing source documents to extract financial information. - Classification
Group similar transactions into categories, posted in the general ledger. - Recording
Document transactions systematically in journals and ledgers. - Summarization
Prepare trial balances and financial statements. - Interpretation
Analyze financial data to support decision-making, transforming raw financial information into actionable insight.
Prime Entry Books
Source Document
The original record evidencing a transaction, used as the basis for the first entry into the accounting system.
Journal
The book of prime entry where transactions are recorded chronologically from source documents, before posting to the ledger.
| Source document | Journal | Purpose |
|---|---|---|
| Purchase invoice | Purchases journal | Record credit purchases of goods |
| Sales invoice | Sales journal | Record credit sales of goods |
| Debit note | Purchases return journal | Record goods returned to suppliers |
| Credit note | Sales return journal | Record goods returned by customers |
| Cash receipt / payment voucher | Cash receipt / payment journal | Record cash receipts and payments |
| Journal voucher | General journal | Record entries not covered by the other books |
Secondary Entry Books
Ledger
The book where transactions are posted from journals and grouped by account, showing the running balance of each account.