Daybook definition
/What is a Daybook in Accounting?
A daybook is a book of original entry in which an accountant records transactions by date, as they occur. These transactions are recorded in chronological order, where each one is recorded in the order in which it occurred. This results in a set of records that start at the beginning of a reporting period, and progress to the end of the reporting period. By capturing all daily transactions, daybooks help ensure that all transactions are accounted for and support audit trails for verification.
This information is later transferred into a ledger, from which the information is summarized into a set of financial statements. Daybooks are only used in a manual accounting environment, and so are not commonly found in a modern accounting system.
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FAQs
How Does a Daybook Contribute to the Audit Trail?
A daybook contributes to the audit trail by providing a chronological record of all financial transactions as they occur. This detailed log helps auditors trace entries back to their original source documents, ensuring accuracy and transparency. By preserving the sequence and timing of entries, it supports the integrity of the accounting system.