Choose the correct book of prime entry
Route source documents to the book that first groups the transaction before ledger posting.
Section 2.3 · Books of prime entry
Cambridge IGCSE Accounting 0452 / (9–1) 0985, 2027–2029 Version 1. These lessons follow the 2027–2029 syllabus only; the separate 2026 syllabus update is not yet mapped. Written practice is self-checked, not an official Cambridge grade. Full timed-paper practice and human subject-teacher review remain pending.
Before you begin
- No previous accounting study is assumed. Keep the business, transaction and accounting period in view, and distinguish a resource, a claim and a performance result.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
What is one purpose of a book of prime entry?
What you will learn
- Identify the purpose of a book of prime entry
- Route common credit transactions to the appropriate journal
- Explain why the original source remains important
Group similar source transactions
Books of prime entry organise transaction information before ledger posting. Common books are the cash book, petty cash book, sales journal, purchases journal, sales returns journal, purchases returns journal and general journal.
Credit sales of goods for resale go in the sales journal; credit purchases go in the purchases journal. Sales returns and purchases returns have their own journals. The general journal records specified items that do not belong in a specialised book, following the syllabus procedures.
Post the grouped totals and individual accounts
The prime-entry book supports ledger posting: individual customer and supplier amounts are posted to their accounts, while relevant totals are posted to nominal accounts according to the system used.
Check that the document belongs in the selected book. A cash sale does not belong in the credit sales journal; the cash book records cash and bank receipts and payments.
Pause and explain
A customer returns goods from a previous credit sale. Which journal is the usual first record?
Worked example
Select the book of prime entry for a credit sale, a credit purchase and a customer return.
Show the worked solution
- Credit sale of goods: sales journal.
- Credit purchase of goods: purchases journal.
- Goods returned by a customer: sales returns journal.
Answer Use the sales journal, purchases journal and sales returns journal, respectively.
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Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
Route a cash sale, a credit sale, a credit purchase and goods returned to a supplier to their usual first books.
Give me a hint
Separate cash and bank transactions from credit sales and credit purchases.
Compare my reasoning
- Cash sale: cash book.
- Credit sale: sales journal; credit purchase: purchases journal.
- Goods returned to supplier: purchases returns journal.
Cash sale—cash book; credit sale—sales journal; credit purchase—purchases journal; supplier return—purchases returns journal.
Look for these in your work
- Cash transaction routed
- Both credit transactions routed
- Supplier return distinguished
A customer returns $75 of goods from a credit sale. Explain the first record and the later ledger effects.
Give me a hint
The customer return reduces both the net sales and the amount the customer owes.
Compare my reasoning
- Record the credit sale return in the sales returns journal from the credit note or return evidence.
- Post the customer-specific amount to that customer's account to reduce the receivable.
- Post the appropriate total to the relevant nominal account according to the system's procedures.
Record $75 in the sales returns journal, then post it to the customer's account and the relevant nominal account so net sales and the receivable are reduced.
Look for these in your work
- Journal selected
- Customer account updated
- Nominal effect stated
A bookkeeper records a cash purchase in the purchases journal and also in the cash book. Explain how to check for duplicate recording and choose the correct route.
Give me a hint
The purchase was paid immediately, so the source and payment should be recorded once in the relevant cash record.
Compare my reasoning
- Check the source invoice, payment evidence and reference numbers.
- A cash purchase belongs in the cash book, not the credit purchases journal.
- Remove or correct the duplicate posting using the business's correction procedure and retain an audit trail.
Verify both entries against the source. Keep the correctly recorded cash-book entry, correct the improper purchases-journal posting, and document the correction to prevent duplicate expense or supplier balances.
Look for these in your work
- Source checked
- Correct book selected
- Controlled correction explained
Common mistakes
- Putting cash transactions in a credit journal
- Using the purchase returns journal for goods returned by a customer
- Treating the prime-entry book as a substitute for individual ledger accounts
What can you explain now?
Where is a credit purchase of goods for resale first recorded?
Compare with the explanation
Purchases journal
It groups credit purchases before posting to the supplier and nominal ledger accounts.
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Make it stick
Why do credit sales and cash sales use different first books?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.