Large numbers of similar transactions are recorded in special purpose books instead of the journal.
Cash book
- Single column cash book: records cash receipts (debit) and cash payments (credit). It never shows a credit balance.
- Double column cash book: cash and bank columns side by side. A transaction between cash and bank is a contra entry, marked "C" in the L.F. column.
- Petty cash book: small payments made by the petty cashier, usually under the imprest system.
Other books
| Book | What is recorded |
|---|---|
| Purchases book | Credit purchases of goods only |
| Sales book | Credit sales of goods only |
| Purchases return book | Goods returned to suppliers (debit notes) |
| Sales return book | Goods returned by customers (credit notes) |
| Journal proper | Everything else: opening and closing entries, adjustments, rectification, credit purchase of assets |
Remember
Cash purchases go to the cash book, not the purchases book; credit purchase of a machine goes to the journal proper, not the purchases book.
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