Day Book No. 2 (Choice)

Description

A Day Book is a type of accounting record used to keep a chronological, day-by-day record of all business transactions before they are transferred to the ledger.

It is often considered the primary book of entry because every transaction is first noted here, usually in order of occurrence, with essential details such as:

Date of transaction

Description of the transaction (narration)

Debit and credit amounts

Reference or voucher number

Purpose:

To maintain an accurate, time-sequenced record of daily business activities.

To provide a ready reference for preparing ledgers and financial statements.

To track both cash and non-cash transactions before they are classified into specific accounts.

Example:
If a shop sells goods for ₹5,000 in cash on 12 August 2025, it will be first recorded in the Day Book with the date, description (“Cash sales”), and the amount.