Books of Original Entries in Accounting
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Questions and Answers

What type of accounts are maintained in the General Ledger Book?

  • Entries related to cash transactions
  • Assets accounts, expenses account, losses account, and total purchases and sales accounts (correct)
  • Customers' accounts
  • Suppliers' accounts

    • What is the purpose of a Debit Note?

  • To issue a discount on the catalogue price
  • To report faulty goods, shortages, or overcharges to the supplier (correct)
  • To remind the customer about due payments
  • To make entries in the sales returns book

    • What is the main purpose of a Trade Discount?

  • To make entries in the purchases returns Book
  • To reduce the amount owed by the customer
  • To report faulty goods or overcharges to the supplier
  • To encourage bulk buying and increase profit for the buyer (correct)

    • Which business document is used to remind the customer about their due amount?

    <p>Statement of Account</p> Signup and view all the answers

    In which book are entries made with the help of an Invoice?

    <p>Purchases Ledger Book</p> Signup and view all the answers

    What is the purpose of the Sales Returns Journal?

    <p>To record all returns inwards</p> Signup and view all the answers

    Which book is used to record all credit sales of goods?

    <p>Sales Journal</p> Signup and view all the answers

    What type of transactions are recorded in the General Journal (or Journal)?

    <p>Transactions that cannot be recorded in any other book of original entry</p> Signup and view all the answers

    What is the purpose of the Cash Book?

    <p>To record all receipts and payments of cash and cheques</p> Signup and view all the answers

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