Day Book
Definition
A book of prime entry where transactions of a particular type — sales, purchases, returns — are first listed in date order before being posted to the ledger. It keeps the ledger uncluttered.
Related Terms in Core Accounting
Trade Discount
A reduction off the list price given to a buyer, usually for volume or trade status, deducted before the invoice is raised. It is not recorded separately in the books because the invoice is already net of it.
Cash Discount
A reduction offered to a customer for paying within a set time. Unlike a trade discount, it is recorded in the books because it affects the amount actually received against the invoiced total.
Outstanding Expenses
Expenses that relate to the current period but remain unpaid at its end, recorded as a liability so the cost is matched to the right period. They are a form of accrued expense.
Contingent Liability
A possible obligation that depends on an uncertain future event, such as a pending lawsuit or guarantee. It is disclosed in the notes rather than recorded, unless payment becomes probable and measurable.
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