Books of prime entry Flashcards
1
Q
What are the six books of prime entry
A
Sales journal Purchases journal Sales returns journal Purchase returns journal Cash book General journal
2
Q
Sales journal
A
Lists invoices for credit sales
3
Q
Purchases journal
A
Lists invoices for credit purchases
4
Q
Sales returns journal
A
Lists the credit notes issued by the business
5
Q
Purchases returns journal
A
Lists the credit notes received by the business
6
Q
Cash book
A
Used to record bank receipts and bank payments, as well as cash allowed and cash discount.
7
Q
What does the left side of the cash book record?
A
A positive bank balance at the start of the month.
Amounts received by the business
Cash discounts allowed to customers
8
Q
What does the right side of the cash book record?
A
A negative bank balance at start of the month
Amounts paid by the business
Cash discount received from suppliers
9
Q
General journal
A
Used to record non-routine transactions
