Bookkeeping Lesson 4

What is recorded in the sales day book?

• Cash sales

• Cash purchase

• Credit sale invoices

• Credit purchase invoices

What is recorded in the cash book?

• Only cash transactions when money is coming in and out of the account.

• Cash and credit transactions

What is recorded in the purchase day book?

• Cash purchase

• Credit purchase invoices

• Cash sales

• Credit sale invoices

When a customer pays for an invoice they received where do you record it in the cash book?

• Receipts side of the cash book, cash sales

• payments side of the cash book cash purchase

• Receipts side of the cash book trade receivables

• Payments side of the cash book trade payables

Purchase return day book records

• Invoices to customer

• Invoice from supplier

• Credit note to customers

• Credit note from suppliers

True or False. When recording a payment to a supplier you put the VAT and trade payables in the cash book?

• True

• False

Answer explanation

Because you have already put the VAT in the Purchase day book when you received the invoice you do not also need to put it in the cash book.

How is a cash purchase recorded in the cash book?

• receipt side VAT and trade receivable

• receipt side VAT and cash purchase

• payment side VAT and cash purchase

• payment side VAT and trade payable

How is payment received from a customer for credit sales invoice recorded in the cash book?

• receipt side VAT and trade receivable column

• receipt side trade receivable column

• payment side VAT and trade payable column

• payment side trade payable column

What does the total side of the sales day book stand for?

• The amount that you class as income

• The amount you owe to HMRC

• The amount that you expect your customer to pay you

What does the VAT column of the purchase day book stand for?

• The amount you class as expenses

• The amount you have to pay your creditors

• The amount that you can claim back from HMRC