Daybook is a book of primary chronological registration. Daybooks in accounting is a reflection of the facts of economic life as they occur. After all, it is in this sequence that the company compiles the primary accounting documents, which are the basis for accounting.
The principle of the chronological record is demonstrated in the Daybooks.
In other words, you enter into the registration documents information about the operation upon its completion: first, you should register earlier operations, then-later, guided by the calendar sequence.
To determine the date of the transaction, follow the supporting documents:
- information on the performed works (services) enter on the date specified in the act;
- data on the received payment to register on the date of the bank statement;
- record the shipment (receipt) of the goods according to the date specified in the consignment note.
For example, according to the consignment note, products arrived at the warehouse 12.09.16. Then, the contractor completed the work on 14.09.16. According to the rules of filling the Daybooks, you must first register the receipt of the goods, and then enter information about the work performed. Now, you know the answer to “What is Daybooks?”
What are the Journals? The rules of usage
Journals are a type of accounting documents intended for registration, systematization, and accumulation of information contained in the primary documents accepted for accounting. Journals are not only the basis for the summary reflection of information on accounting accounts. Accountants use journals for the preparation of financial statements.
They divide journals by purpose into chronological and systematic registers and by the degree of a generalization of information into synthetic registers and analytical registers. For example, unlike Daybooks, Journals summarize information about accounting objects for a certain period, presenting summary data on turnover and balances in the context of synthetic accounts.
Let’s show what Journals are with an example. One of the most common Journals of synthetic accounting, widely used by accountants in the preparation of the balance sheet, is the balance sheet. This Journal provides information on the balance at the beginning of the period, the turnover for the period, and the balance at the end of the period for each synthetic account for a certain period. Naturally, we would present balance and turnover information separately on the debit and credit of the respective accounts. Now, you know what Journals are.
What are Ledgers, the rules of usage
The Ledgers in the accounting function as a single consolidated register. Ledgers contain summary information on all accounting accounts, which are provided by the working plan of accounts of the company. Data is reported by month and for the full reporting year. The basis for filling in the Ledgers is ordered from Journals (register on accounts), which reflect the initial balances as of January 1, credit, and debit turnover for the period with the final balance withdrawn.When maintaining the Ledgers, it is necessary to compare the totals of debit and credit records (turnover and balance are analyzed separately). If the accountant made the entries in the document correctly, the results of the debit and credit book would be identical. If discrepancies are detected, it is necessary to check the correctness of posting in the Ledgers and the accuracy of the original accounting registers. Now, you know what is Ledgers.