Books of Original Entry

The purchases ledger records

• the accounts of suppliers on credit.

• the accounts of customers on credit

• all the accounts of suppliers

• all the accounts of customers

Accounts receivables are found

• in the general ledger

• in the cash book.

• in the sales ledger

• in the general journal

Cash purchases and cash sales are entered

• in the sales and purchases ledger

• in the general ledger only

• in the journal proper first

• in the general ledger and cash book

The purchases journal records

• all the accounts of suppliers on credit

• all purchases of assets on credit

• all purchases on credit

• all purchases for resale on credit

The purchases journal entries are posted to

• the purchases account and the customers' accounts.

• the general ledger and the cash book

• the purchases account and suppliers' accounts in the purchases ledger

• the general ledger and the sales ledger

The sales journal contains

• the accounts of customers on credit

• a detailed list of all sales of stock on credit

• trade creditors

• everything that is sold on credit for the period

The total of the sales journal represents

• the total sales for the period

• trade creditors for the period

• a current liability of the period

• trade receivables for the period

The details for a purchases journal entry are taken from

• the statement

• the invoice

• the debit note

• the sales receipt

Trade discount is offered

• to encourage prompt payment for goods

• to encourage trade

• as an incentive to buy now

• for the purpose of saving money

Which of the following is an alternative name for the purchases journal?

• purchases day book

• accounts payable

• daily purchases

• books of purchases