What Are Books of Accounts - Definition - Meaning And Explanation

Books of Accounts include Books of Original Entry (Journals) And Books of Final Entry (Ledgers) in which Business Transactions are recorded through Source Documents such as Sales Invoice, Cash Receipts, Purchase Invoice or Voucher, etc., These are the main books of accounts and these are kept in a safe place and disclosed only to internal management but not to others unless it is required by law to do so. Actually, the recording of accounts in journal and ledgers is a part of Bookkeeping which is very important and basic phase of accounting.

In books of accounts, all business transactions occurred on daily basis are recorded chronologically (in journals) and classified separately (in ledgers) through evidence documents prepared at the time of making exchanges or deals between parties.