Difference between primary and secondary books of accounts

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difference between primary and secondary books of accounts

Primary Books of Accounts | Debits And Credits | Financial Transaction

Post a Comment This blog is meant for students of Accoutancy and Accountancy enthusiasts. Please do not spam here because if you do so, your comment will be deleted. Any student of accountancy is familiar with two things of the subject,namely "Journal" and "Ledger". However, very few students are aware of the concepts underlying them. This post is aimed at clearing that very concept.
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Aristotle on Primary and Secondary Substance (Categories, c.5) - Philosophy Core Concepts

Accounting for any transaction begins with passing an entry in the the totals of the different ledgers will be tansferred to ledger accounts of Ledger too is known by three names: "Primary books" and "Books of secondary.

What do you mean by secondary books of account?

Chat or rant, adult content, spam, insulting other members, show more. Harm to minors, violence or threats, harassment or privacy invasion, impersonation or misrepresentation, fraud or phishing, show more. What do you mean by secondary books of account? Report Abuse. Are you sure you want to delete this answer? Yes No. All other books like,sales and purchase books, day book, stock register, ledgers of individual customers, petty cash register, which provide data for entry into the main books are called 'Secondary Books of Account.

Primary books of accounts are those books in which business transactions are recorded at first, i. Accountant is the person responsable for maintaining books of accounts while auditor is the person who examins the books of accounts and determines the true and fairness of books of accounts. Briefly explain type of secondary books? Noramally books of accounts are preserved for five years. It is a branch which had able to prepare its own accounts on its books then we say that is an independent branch. Accounts prepared by it is technically called as independent branch accounts.

Every debit has an equal and opposite credit. Each transaction should be recorded in such a way that it affects two sides- debit and credit- equally. Thus, the first and foremost step in recording a transaction is to identify the debit and credit elements. Decrease in assets and increase in liabilities and equity: Credit. Expenses and losses: Debit Income and gains: Credit. ABC Ltd bought an equipment for Rs. Is it a transaction?


Every business performs various operational activities and by this operational activities, there arise different types of transactions in the business. As per accounting standards and double entry system rules, different transactions have different treatment in the books of accounts. There are various books of accounts in which journal and ledger are the most important for every business. This article concentrates on communicating the difference between Journal and Ledger books. Every business records transaction is recorded in a sequential way in the journal. It is also called as a primary record book because transactions are first recorded in the journal.

An alternative introduction is under the journal entry. A journal is known as primary book. Books of Prime Entry are a more efficient variation on double-entry accounting. In basic double entry, a double entry is made in the general journal, which is posted in the general ledger accounts. Originally, the Venetian method also suggested a preceding diary step, which makes sense as no thinking is required in double entry, so it may have been faster. In a manual system, books of prime entry act as the speed entry step: instead of trying to remember which accounts to debit and which to credit, and writing the names down for each entry for each transaction in the general journal, the general journal is reserved for infrequent accrual entries; the more frequent cash entries, and the most frequent accrual entries are divided into specialized journals of cash receipts and cash payments; credit sales journal and credit purchases journal credit means 'on credit' here ; and for medium frequency accrual entries, sales returns and purchase returns journal. Apart from not having to write account names each time, the column layout in these specialized journal help systemize the double entry rules; most of them can be totaled at the end of each month to provide monthly entries into control account ledgers, as well as reconciliation with summary monthly totals when a schedule of subsidiary ledger accounts is created.


  1. There are various books of accounts in which journal and ledger are the as a primary record book because transactions are first recorded in the journal. a book of secondary entries because the transactions in the ledger.

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