Podcast
Questions and Answers
Which journal is primarily used to record transactions related to goods returned by a customer?
Which journal is primarily used to record transactions related to goods returned by a customer?
- Cash Book
- Purchases Journal
- Sales Returns Journal (correct)
- Sales Journal
A company makes a payment to a supplier for goods bought on credit. In which journal would this transaction typically be recorded?
A company makes a payment to a supplier for goods bought on credit. In which journal would this transaction typically be recorded?
- Sales Journal
- Cash Book (correct)
- General Journal
- Purchases Journal
Which ledger contains a summary of all the asset, liability, and equity accounts?
Which ledger contains a summary of all the asset, liability, and equity accounts?
- General Ledger (correct)
- Cash Book
- Sales Ledger
- Purchase Ledger
A business offers a discount to a customer, which is processed via a credit note. Through which journal does the credit note get processed?
A business offers a discount to a customer, which is processed via a credit note. Through which journal does the credit note get processed?
In which journal would you primarily record the initial transaction of purchasing goods on credit from a supplier?
In which journal would you primarily record the initial transaction of purchasing goods on credit from a supplier?
Flashcards
Sales Journal
Sales Journal
Records credit sales transactions.
Purchases Journal
Purchases Journal
Records credit purchase transactions.
Sales Returns Journal
Sales Returns Journal
Documents reductions in sales due to returns or allowances.
Purchase Returns Journal
Purchase Returns Journal
Signup and view all the flashcards
Cash Book
Cash Book
Signup and view all the flashcards
Study Notes
- A transaction's flow is classified, entered in journals, and then entered in ledgers.
Transactions
- Sales Invoice is classified as Credit Sales
- Purchase Invoice is classified as Credit Purchases
- Credit Note is classified as Sales Returns
- Debit Note is classified as Purchase Returns
- Receipts and cheque stubs are classified as Cash Receipts and Payments
- Other transactions are classified as Other Transactions.
Journals
- Credit Sales are entered in the Sales Journal
- Credit Purchases are entered in the Purchase Journal
- Sales Returns are entered in the Sales Returns Journal
- Purchase Returns are entered in the Purchase Returns Journal
- Cash Receipts and Payments are entered in the Cash Book
- Other Transactions are entered in the General Journal
Ledgers
- The Sales Journal and Sales Returns Journal are entered in the Sales Ledger
- The Purchase Journal and Purchase Returns Journal are entered in the Purchase Ledger
- Cash Book and General Journal are entered in the General Ledger
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Understanding the flow of transactions in accounting is crucial. Transactions are classified, then recorded in journals, and finally posted to ledgers. Each type of transaction follows a specific path to ensure accurate financial record-keeping.
