The books of prime entry

Question 1

What is the process of the book of prime entry?

Answer 1

-This is achieved by entering details from key business documents into the appropriate book of prime entry.
-These books of prime entry are often known as daybooks as they would in theory be written up every day.

Question 2

What is the sales daybook?

Answer 2

-The book of prime entry where all the business’s invoices sent to credit customers are listed.

Question 3

What is the sales returns daybook?

Answer 3

-The book of prime entry where all the credit notes issued by the business are listed.

Question 4

How are credit notes recorded in the daybooks?

Answer 4

-As a negative entry in the sales daybook.
-In a separate book of prime entry known as the sales returns daybook.

Question 5

What is the cash book?

Answer 5

-A book of prime entry used to record money received and paid out by the business.

Question 6

What are the two cash books and their uses?

Answer 6

-Cash book debit side records the money received by the business.
-Cash book credit side records the money paid out by the business.

Question 7

What is the purchases daybook?

Answer 7

-The book of prime entry where all the supplier invoices by the business are listed.

Question 8

What is the purchases returns daybook?

Answer 8

-The book of prime entry where all the credit notes received by the business are listed.