For recording the business transactions, first of all, the vouchers are prepared by accountants. As we know that different types of vouchers are prepared for different type of transactions. Preparation of vouchers is very very responsible job. Proper allocation of accounting heads should be done by accountant as per the nature of transaction.
Day Book:- means a register where all the vouchers of same nature are recorded date-wise or in proper order . From the help of day book the summary of all the vouchers can be seen at one place. In absence of day book, no one can get further details easily. So the day book is a proper way to enter the transactions from voucher and further, to make the entries from day book to the ledgers.
Types of Day Book and Entry of the Vouchers :- In small business organizations, where number of transactions are very less, in that case only one day book is sufficient for recording all type of transactions. In single day book system, there are two sides of day book i.e. debit side and credit side. All the entries are done in day book according to the vouchers in respective sides of day book. The single day book is suitable only when the quantity of transactions is very little.
But, In large organizations, it is not possible to write all the vouchers in single day book. In that case, different types of day books are maintained by a business firm as under:-
Cash Day Book:- Cash Payment Vouchers and Cash Receipt Vouchers are entered in cash day book.
Bank Day Book:- Bank Payment Vouchers, Bank Receipt Voucher, Contra Vouchers are recorded in Bank Day Book. Separate bank day books can be kept for different banks according to the requirement of business firm and the quantum of bank transactions.
Clarification in Respect of Entry of Contra Vouchers:– As we know that the Contra voucher is prepared in respect of withdrawal of cash from bank or cash deposit in to bank or funds transfer from one bank to another bank of same company. Entries of contra vouchers will be done as follows:-
i) In case of cash withdrawal from bank :- The contra Voucher will be entered in two type of day books i.e. (a) in receipt side of Cash Day Book (b) Payment side of Bank Day Book.
ii) In case of cash deposit in to bank:- In this case also the contra voucher will be entered in two day books i.e. (a) Receipt side of Bank Day Book (b) Payment side of Cash Day Book.
iii) Funds transfer from one bank to another bank:- In this case also, the contra voucher is prepared by the accountant. What happens is that some time only one bank day book is maintained by the business firm for all banks having different columns for different banks in debit side and credit side of bank day book. In these circumstances, amount of transaction is debited or credited in the columns allotted for respective banks. If the separate banks day books are maintained for different banks then the contra voucher is entered in two different bank day books according to the nature of transactions.
Purchase Day Book:- All purchase vouchers are entered in purchase day books.
Sales Day Book:- All sales vouchers are entered in sales day book.
Purchase Return Day Book:- All purchase return vouchers are entered in this day book.
Sales Return Day Book:- All sales return vouchers are entered in sales return day book.
Journal Register:- All vouchers not relating to above day books are recorded in Journal register.
Important Notes In Respect of Entering the Vouchers in Day Books
The Accountant must keep in his mind the following points while entering the vouchers in day books :-
- Different types of vouchers must be segregated according to the different types of day books so that the possibility of wrong entry can be avoided.
- The Vouchers must be entered in day books date-wise and on daily basis. Dates must be in ascending order only.
- Serial numbers of vouchers must be given on the vouchers.
- Page numbers of day book must be written on vouchers after entering it in to day book.
- Daily balancing of Cash day book is must so that physical cash balance can be tallied with the balance of cash book.
- Balancing of Bank day book also should be done on daily basis to know the actual funds available in bank on that particular day.
- Totals of Purchase day book, Sales day book, Purchase return day book, Sales return day book can be done as per the requirement of the business firm. But, if the transactions are too much then daily totaling of these day books is advisable. Otherwise, monthly total must be done.
- The totals of debit and credit side of Journal Register must be done page wise. Because if the totals of both sides are not equal then it shows that there is some mistake in entries.
- After entering the vouchers in day books, the vouchers must be filed properly.
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