All 26 Books of Prime Entry questions
More in Books of Prime Entry
What is double-entry bookkeeping? What is the difference between a debit and a credit? What is a ledger? How do you post the sales day book to the ledgers? Why is the cash book considered both a book of prime entry and a ledger account? How is VAT recorded in the books of prime entry? What is a trade discount and how is it treated in the day books? How do you post the purchases returns day book? What is a remittance advice and how does it relate to the books of prime entry? What controls help ensure completeness and accuracy in the books of prime entry?
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What is the difference between a book of prime entry and a ledger?

Intermediate

Answer

A book of prime entry is where a transaction is first recorded from its source document (a listing/journal), and is not itself part of the double-entry ledger (except the cash book, which is both). A ledger contains the double-entry accounts (nominal/general, sales, purchases ledgers) where transactions are classified into individual accounts. Prime entry books feed the ledgers.
Real-world example The purchases day book merely lists invoices; the double entry happens when its totals are posted to the ledgers.

Common follow-ups: Is the cash book a special case? | Do day books form part of the double entry?

Cash Book & Petty Cash Control Accounts Books of Prime Entry
All 26 Books of Prime Entry questions