The books of prime entry for sales

Question 1

What is a sales daybook?

Answer 1

-where we record sales invoices that we have sent to credit customers
-purely used for credit customers

Question 2

What is the sales returns daybook?

Answer 2

-where we record credit notes we have sent to credit customers

Question 3

What is the discounts allowed daybook?

Answer 3

-where we record the VAT credit notes issued to credit customers who have taken the prompt payment discount

Question 4

What is the purchases daybook?

Answer 4

-where we record purchases invoices that we have received from credit suppliers
-DON’T RECORD CASH

Question 5

What is the purchases returns daybook?

Answer 5

-where we record credit notes that we have received from credit suppliers

Question 6

What is the discounts received daybook?

Answer 6

-where we record VAT credit notes received from credit suppliers after we have taken prompt payment

Question 7

What is the cash book (receipts)?

Answer 7

-where we record all receipts received from cash sales and credit customers

Question 8

What is the cash book (payments)?

Answer 8

-where we record all payments made for cash purchases and credit suppliers

Question 9

What is the petty cash book?

Answer 9

-where we record payments for small sundry items

Question 10

What is the journal book?

Answer 10

-where we record items that can’t get into the account records

Question 11

What are the double entries for the sales daybook?

Answer 11

Dr receivables
Cr VAT
Cr net

Question 12

What are the double entries for the sales returns daybook?

Answer 12

Dr VAT
Dr net
Cr receivables

Question 13

What are the double entries for the discounts allowed daybook?

Answer 13

Cr receivables
Dr VAT
Dr discounts allowed

Question 14

What is the difference between the receivables ledger control a/c and the receivables ledger?

Answer 14

RLC = all credit customers
RL = individual credit customers