Books of Prime Entry
Journals
Journal questions test your ability to record transactions that cannot go through the other books of prime entry — including opening entries, correction of errors, and purchase or sale of non-current assets on credit. Narratives are usually required.
Always include a narrative (description) for each journal entry — marks are awarded for it. Debit entries go first, credit entries are indented. Make sure debits equal credits in every journal.
Key Concepts to Revise
Opening Journal Entry
Records assets and liabilities when a business starts or switches to double-entry bookkeeping. Capital is the balancing figure.
Correction of Errors
Used to correct errors that do not affect the trial balance — e.g. errors of omission, commission, principle, and original entry.
Non-current Asset Transactions
Purchase or sale of assets on credit goes through the journal, not the purchases or sales day book.
Narratives
Every journal entry must have a brief description explaining the reason for the entry. Always include it — it carries marks.