Book Maintenance and the Brief about Day Books
In accounts section, it is extremely important for one to maintain the data logs of all the transaction that takes place. It is quite common that one will have a plenty of transactions that can either be cash delivering or cash depositing that happens in accounts department each and every day. It is very important that one has to maintain a record for each and every transaction. This will be helpful in case of any future references. The future references are required in most of the cases since it is an acknowledgement about the transaction that had happened. This will then act as an evidential record that can summarize the total transactions and as a proof for every transaction. The word transaction includes sales, receipts, purchase, payments by an individual or payments by an organization. A book keeper will typically be available who maintains these records and will be responsible and questionable in case of any wrong entries.
There are different kinds of book keeping methods that are followed for any account maintenance. The Day Bookcan typically be categorized as a book that will be used to record the day to day transactions that happens in and around accounting field. This book will also be called as the book of original entry. The day books will be recorded and finally all the records from the day book will be transferred to the ledgers. Hence this is a formal activity and needs care to ensure that no wrong input is given since this will lead to confusion while doing the entry into the ledgers. There are different types of these types of books that are available. To record all the information about the sales invoices, the book used is called as sales daybook. To record all type of sales credit information, the book used is called as sales credit daybook. To record all the information about the information on purchasing, the book used is called as purchase day book.
For the purpose of recording all the debit details that happens due to purchase, the book used is called as purchase day book. Receipts day book will typically come under the category of cash day book where the entire details about that money that has come in will be registered.
There is one more day book that comes under the category of cash day book and this will be called as payments daybook where the details about the cash paid out will be registered. There is also a book that is use to record day to day journals and this will be known as journal day book. Typically, it is not necessary that this pertains to some company or organization. The book that is maintained daily in the home to record about the income and expenditure details for the day is also called as day book. Also this can be pertained to a diary that is used by a person in his daily life to register some information.