Posting sales and receipts to the ledgers

Question 1

What is the sales daybook?

Answer 1

-where we record details of invoices that we have sent to credit customers
-cash sales aren’t recorded

Question 2

What are the double entries for the sales daybook?

Answer 2

Dr receivables
Cr VAT
Cr Sales

Question 3

What is the sales returns daybook?

Answer 3

-where we record details of credit notes that we have sent to credit customers

Question 4

What are the double entries for the sales returns daybook?

Answer 4

Cr receivables
Dr VAT
Dr sales

Question 5

What is the discounts allowed daybook?

Answer 5

-where we record details of all VAT credit notes we have sent to credit customers

Question 6

What are the double entries for discounts allowed daybook?

Answer 6

Cr receivables
Dr VAT
Dr discounts allowed

Question 7

What is the cash receipts book?

Answer 7

-where we record details of all money coming into the business

Question 8

When do you analyse VAT in the cash book?

Answer 8

-if it relates to a cash sales

Question 9

What are the double entries for the cash receipts book?

Answer 9

Dr bank
Cr receivables
Cr VAT
Cr sales
Cr sundry