Legal Definitions - shop books

Shop books refer to the primary financial and operational records that a business keeps as part of its regular, day-to-day activities. These are the initial, raw entries of transactions, not summaries or analyses, and they provide a detailed account of the business's financial dealings and operations. Essentially, they are the original documents where business transactions are first recorded.

• Example 1: A local independent bookstore maintains a daily sales ledger where every customer purchase is immediately recorded by hand, noting the book title, price, and payment method. They also keep a separate log for incoming inventory, detailing each new shipment of books received from publishers.

  How this illustrates the term: Both the daily sales ledger and the inventory log are "shop books" because they are the original, first-hand records of the bookstore's transactions – sales and inventory receipts – maintained in the ordinary course of its business operations.

• Example 2: A small plumbing company uses a digital accounting system where its technicians log details of each service call immediately after completion, including parts used, labor hours, and the amount charged to the customer. The company also scans and uploads all receipts for purchased supplies as soon as they are acquired.

  How this illustrates the term: The digital entries for service calls and the scanned receipts for supplies are considered "shop books." They represent the initial, direct recording of the company's income-generating activities and expenses as they occur, forming the foundational data for its financial records.

• Example 3: An artisan who sells handmade pottery at craft fairs and online keeps a notebook where she meticulously records every piece sold, its price, and the date of sale. She also has a separate file where she keeps original invoices for all her raw materials, such as clay and glazes.

  How this illustrates the term: The artisan's sales notebook and her file of material invoices are "shop books." They are the initial, unsummarized records of her business transactions – her sales and her expenses for materials – kept as part of her routine business practice.