Accounting·Basic accounting systems · NSSCO 2.1
Books of first entry & VAT
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Before a single figure reaches the ledger, it is written in a book of first entry. In this lesson we define these books, name all eight, match each one to the source document that feeds it, follow a transaction through the whole accounting process, weigh up the advantages, learn why every document is numbered — and finish by meeting VAT, telling input VAT from output VAT.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.1):
- Define books of first entry
- List the types of books of first entry
- Explain the advantages/benefits to the business of using books of first entry
- Explain the use of books of first entry in the accounting process
- Explain the use of document numbers in books of first entry
- Define VAT
- Distinguish between input VAT and output VAT (no entries are required)
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Ms Pieters and Mike talk through the whole topic — with the figure and working drawn live.