What Are Books of Final Entry - Definition And Meaning

Why Ledger is Called A Book of Final Entry Or Secondary Entry? / Ledger Is A Book of Secondary Entry

Books of Final Entry or Secondary Entry are Ledgers where all Journal Entries are finally posted in a classified form separately from other Types of Accounts at the end of accounting period. Books of Final Entry or Ledgers are the parts of Books of Accounts and these are different from the Books of Original Entry Or Primary Entry (Journals).

Books of Final Entry are very important because all Accounts’s totals are finalized here and only Permanent Accounts are transferred to Balance Sheet while Temporary Accounts are closed to Income Statement or Trading And Profit & Loss Account.

List of Books of Final Entry / Books of Final Entry Examples

Here are few important books of final entry:

1. Cash Book

2. Purchases Ledger

3. Sales Ledger

4. Accounts Receivable Control Ledger

5. Accounts Payable Control Ledger

In Fact, the book of final entry or secondary entry is another name for the Ledger.