Day book
What is a day book?
A day book is a book of prime entry: a transaction is written there first, from its source document.
The sales day book lists sales made on credit, from the sales invoices.
The purchases day book lists purchases made on credit, from the suppliers' invoices.
At the end of the period the day book is added up. The total is posted to the ledger in one go.
Example
A sales day book lists three invoices, for £260.00, £410.00 and £190.00. Ignore VAT. The total is £860.00. It is posted as a debit to Trade receivables and a credit to Sales.
Why it matters
One total is posted, not every invoice. A sale paid for on the spot does not go in a day book. It goes in the cash book.
Practise it
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].