There are various types of records that may be maintained by a business depending on the size of the business. The following are some of the important business records:
i) Purchases journal.
This is a record of all daily purchase of stock on credit. It keeps a record of daily purchase of stock on credit. It keeps a record of persons from whom a business has purchased on credit.
It’s also referred to as the purchases day book.
ii) Sales journal.
This is used to record all the daily credit sales. It shows the particular persons to whom goods have been sold on credit. It is also known as the sales day book.
iii) Purchases returns journal
It provides a list of goods returned outwards to supplies. Goods may be returned for reasons such as, they are defective, wrong type of quantities or description supplied, or goods damage on transit.
iv) Sales returns journal
It provides a list of goods returned inwards to the business by the customers.
v) The cash book.
This is the book in which all the receipts and payments are made. There are different types of cashbooks that a business may maintain. These include one column, two columns or three columns cash book. The petty cash book and analysis cash book may also be maintained.
vi) The ledger
All accounts of assets, liabilities, capital, revenue and expenses are maintained in a book known as the ledger. An account- a chronological entry of all transactions affecting a given item or person.
Recording transactions in the ledger is made based on the concept of double entry which means that ever transaction must have at least two effects and should therefore be recorded twice.