Books of prime entry

Question 1

Book of prime entry

Answer 1

Transactions are recorded here before being entered in the ledger

Question 2

Books of prime entry (7 books)

Answer 2

Cash book
Petty cash book
Sales journal
Purchases journal
Sales returns journal
Purchases returns journal
General Journal

Question 3

Sales Journal

Answer 3

Shows a list of the names of businesses to which credit sales have been made from

Question 4

Sales returns journal

Answer 4

shows a list of the names of businesses that have returned goods previously sold on credit to

Question 5

Purchases journal

Answer 5

Shows the list of names of businesses from which credit purchases have been made from

Question 6

Purchases returns journal

Answer 6

Shows a list of the names of businesses to which goods previously purchased on credit, have been returned to

Question 7

How journal entries are recorded in the ledgers

Answer 7

The journal transactions get recorded in chronological order on the day of their occurrence. The ledger classifies the transactions from the journal under the respective accounts to which they are related. Each journal entry has a detailed narration of the transaction.