Lesson 4

What is recorded in the sales day book

• Cash sales only

• Credit sales only

• Cash and credit sales

Answer explanation

The sales day book is where we write the invoices that have been sent to customers

What is recorded in the purchase day book?

• Cash purchases

• Credit purchases

• Cash and credit purchases

Answer explanation

We put any purchases invoices we receive from suppliers into the purchase day book

What is recorded in the cash book?

• Only cash transactions that come in and out of the business

• Cash and credit transactions

• Customer payment

• Supplier payment

Answer explanation

Any money coming in and out of the business is recorded in the cash book

When a customer pays us where do we record this in the cash book?

• Payment side of the cash book

• Receipt side of the cash book

Sales day book and sales returns day book records?

• Customers name

• Suppliers name

• Both

Answer explanation

Because its the sales day book it would record the customers name so we know who owes us the money.

Which side of the cash book do we record a supplier payment?

• Credit side

• Debit side

Answer explanation

It would be the credit side as this is the payments side of the cash book

When a customer pays us we need to note the VAT in the cash book?

• True

• False

Answer explanation

Because we have already accounted for VAT in the sales day book when the invoice was sent out we do not need to do this again in the cash book.

What do we do with an outstanding lodgement?

• Add

• Deduct

What do we do with an unpresented cheque?

• Add

• Deduct

When updating the cash book with items that are only on the bank statement what are we likely to be putting in the cash book, choose all that apply.

• Direct debit

• Bank interest

• A cheque a customer has given us

• A cheque the supplier has been paid