Question

To determine the details of a specific transaction, one should refer to ____________.

• A. Ledger
• B. Book of original entry
• C. Relevant vouchers
• D. None of the above

Answer 1

The correct option is B Book of original entry

Books of original entry refers to the accounting journals in which business transactions are initially recorded. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced. Each accounting journal contains detailed records for the types of accounting transactions pertaining to a specific area. Examples of these accounting journals are:

(i) Cash journal

(ii) General journal

(iii) Purchase journal

()iv Sales journal

Books of original entry are extremely useful for investigating individual accounting transactions, and ate commonly accesses by auditors, who verify a selection of business transactions to ensure that they were recorded correctly.