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Day Books

A day book is a book of original entry. It is a book in which daily financial transactions are recorded in chronological order. Details for recording in day books are taken from original documents such invoices and credit notes. Until the details in the daybooks are entered in journals for posting to ledgers, these books are not part of the double-entry system.

The day books are the principal source of information for double-entry postings to individual customers’ or suppliers’ accounts in the subsidiary ledger, and the sales control account or purchases control account in one total in the general ledger at the end of an accounting period.

The most common books of original entry are the sales day book in which details of invoices issued to customers are recorded, the purchases day book records invoices received from suppliers. Other day books include sales returns day book, purchases returns day book and cash book which records the inflow and outflow of cash. These books are also called journals.