Chapter 1 - Books Of Prime Entry

Question 1

What are the 8 books of prime entry ?

Answer 1

1) sales day book
2) purchases day book
3) sales returns day book
4) purchase returns day book
5) discounts allowed day book
6) discounts received day book
7) cash book
8) journal

Question 2

What does the sales day book show ?

Answer 2

A list of all credit sales made, compiled from invoices issued

Question 3

What does the purchases day book show ?

Answer 3

A list of credit purchases made, compiled from invoices received

Question 4

What does the sales returns day book show ?

Answer 4

A list of returns from buyers, compiled from credit notes issued

(AKA a list of goods returned by credit customers)

Question 5

What does the purchase returns day book show ?

Answer 5

A list of returns to the sellers, compiled from credit notes received

Question 6

What does the discounts allowed day book show ?

Answer 6

A list of discounts allowed to customers

Question 7

What does the discounts received day book show ?

Answer 7

A list of discounts received from suppliers

Question 8

What does the cash book show ?

Answer 8

The business’s record of cash and bank transactions, compiled from receipts and bank transfers and cheques issued

Question 9

What does the journal show ?

Answer 9

A record of non regular transactions which are not recorded in any other book of prime entry