post the ledger entries from the books of prime entry

What are Books of Prime Entry?

Think of them as the first stop in the accounting journey – like a diary where you jot down every financial event before it moves to the ledger. They record transactions in the order they happen.

Common Books of Prime Entry

• Cash Book – tracks all cash receipts and payments.
• Sales Book – records all sales made on credit.
• Purchase Book – records all purchases made on credit.
• General Journal – for transactions that don’t fit into the above books.

How to Post from Prime Entry to the Ledger

1. Identify the account affected (e.g., Cash, Accounts Receivable).
2. Determine the debit and credit amounts. Remember: $Debit$ increases assets and expenses, $Credit$ increases liabilities, equity, and revenue.
3. Write the entry in the ledger’s Debit column and the corresponding amount in the Credit column.
4. Check that the total debits equal total credits for the period.

Example: A Cash Sale

Suppose the company sells goods worth £500 on cash.

Notice how the total debits (£500) equal the total credits (£500) – the ledger stays balanced!

Exam Tip Box ✏️

When posting from a prime entry book to the ledger, always double‑check the account titles and the debit/credit rule. A common mistake is swapping the debit and credit columns. Use the mnemonic “Debit = Dr, Credit = Cr” to keep them straight.

Quick Recap ??

• Prime entry books capture transactions as they happen.
• Each entry has a debit and a credit.
• Post each side to the appropriate ledger account.
• Ensure the ledger remains balanced after every posting.