Day Book Module – Importance, Types, & Formats

A daybook in accounting, also referred to as a book of original entry, is a crucial record-keeping tool used to document financial transactions in chronological order as they occur. This systematic approach allows accountants and bookkeepers to maintain an accurate and detailed history of all business transactions on a daily basis.

Purpose and Importance of a Daybook

The primary functions of a daybook include:

• Chronological Record: It serves as a chronological log of all financial transactions, providing a complete overview of the business’s financial activities for any given period.
• Foundation for Accounting: The entries recorded in the daybook are later transferred to the general ledger, which organizes these transactions into specific accounts. This process is essential for preparing financial statements such as balance sheets and income statements.
• Transaction Verification: By maintaining a detailed record of transactions, the daybook supports audit trails, making it easier to verify and reconcile accounts.

Types of Daybooks

There are several types of daybooks tailored to different kinds of transactions:

• Sales Daybook: Records all sales transactions, typically credit sales.
• Purchases Daybook: Captures all purchase transactions, usually credit purchases.
• Cash Daybook (or Cash Book): Documents all cash transactions, including both cash receipts and payments.
  General Journal (or Journal Daybook): Used for transactions that do not fit into the other categories, such as adjustments or corrections25.

Daybook Format on Vedmarg

A typical daybook entry includes:

• Sr No. – Simple serial number
• Income particulars: It has opening balance, income from fee collection, and income from extra sources (extra income module)
• Income Amount: Amount of fee collection of extra income
• Remark: Remarks mentioned with the fee collection and extra income entries
• Date: Transaction date of entries
• Expense Particulars: Entries from expenses
• Expense Amount: Amount of the expenses
• Remark of Expenses: Remarks mentioned with the expenses
• Grand Total: It is showing the grand total amount that is “income – expenses = grand total”

Note: If the grand total amount is positive, the organization is in profit for the same day and if the amount is negative (like -15,450), the organisation has a loss.

How To Download, Print Day Book on Vedmarg School ERP Software

1. First of all, you must have the permission of day book module on Vedmarg school erp software.
2. Head to ledger and then find the day book option there, click on day book option (direct link: https://account.vedmarg.com/user/daybook)
3. Now, you can select the date and click on print or download button as per your requirement (see image below).

After clicking the button, you will get your required pdf file on your screen.

Day Book Sample of Vedmarg ERP Software

Conclusion

In summary, a daybook is an essential component of manual accounting systems, providing a systematic method for recording daily financial activities. Its role in ensuring accurate record-keeping and facilitating the preparation of financial statements underscores its importance in effective financial management for businesses.