I'm going to explain first before I ask this -
I'm advising a dispute. The other side won't let us have the prime records of the business. I've was asked by the lawyers what the prime records are and I answered: "well, erm, they're the basic things like the bank statements, erm, you know, erm, the invoices and stuff..." which is pretty pathetic given that I've been an accountant for 25 years!
I thought Aunty Google would give me a source and a neat definition, but nothing.
Can anyone define what the prime records are and is it written down in a in something I could quote from?
Thank you
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Back in the day
Wow, had to think about that:
The prime records or books of prime entry are the accounting records where transactions are first recorded, so:
sales day book
purchase day book
cash ledger - receipts and payments
journals
I suppose nowadays it would be sales day book, purchase day book and bank account transactions lists. Which would normally mean you'll want a back up of their software or detailed transaction printouts.
I would say ...
... prime records are different from books of prime entry, the books of prime entry are where the prime records are recorded, the prime records are the actual transaction records, invoices/receipts, bank statements, cheque stubs - these days e-mails and the like - any recording of them is second hand evidence and just an interpretation, only the "prime" document is absolute proof - an entry in a ledger or day book proves nothing, is just circumstantial evidence.
Thinking about it, even a cheque stub is circumstantial, you need the return cheque from the bank, I doubt here are any clients that have never written something different on the stub than to whom the cheque was actually paid!
Know it when you see it
The trouble is, after so many years, you will have seen a huge variety of records. Show us a bunch of records, and we'll be able to tell you if everything we need is there. Ask what we need, and we will all tend to mumble a bit.
Rough checklist of the most common
Cash book or computerised equivalentCopy sales invoicesPurchase invoicesBank statements for all business accountsCheque and paying-in books for those accounts (if used)
Other items on top would include journals, accruals/prepayments if prepared by the client. Asset registers. Mileage logs. The other list could go on for a while.