Accounting Questions

[Astute Accountant]

<b>Books of original entry</b> are the books in which we first record the transactions, as soon as they take place.

<b>Types of Books of Original Entry</b>
Sales Day Book
Purchases Day Book
Returns Inwards Day Book
Returns Outwards Day Book
Cash Book
General Daybook or General Journal

After the entries from the books of original entry have been summarized, they are entered, using the double entry system of accounting, into the accounts kept in different ledgers of the business.

<b>Types of Books of Secondary Entry</b>
Sales Ledger
Purchases Ledger
General Ledger

A statement showing how cash has been generated and disposed of by an organization is known as a <b>Cash Flow Statement </b> whereas a statement of sources and the application of funds is called a <b>Funds Flow Statement.</b>