Accounting for Sales

What is the purpose of the sales day book?

• To record cash purchases

• To record credit purchases

• To record cash sales

• To record credit sales

What should be recognised in the sales account for a VAT registered business?

• The total amount received

• The VAT amount

• The gross amount including VAT

• The net amount

When is VAT calculated on the net amount of a transaction?

• After deducting prompt payment discounts

• Before deducting prompt payment discounts

• Before deducting bulk and trade discounts

• After deducting bulk and trade discounts

What is the purpose of the discounts allowed day book?

• To record discounts given to customers

• To record discounts received from suppliers

• To record discounts given to employees

• To record discounts received from customers

What is the double-entry to record a discount allowed to a customer?

• Debit Discounts allowed account, Debit VAT account, Credit Receivable account

• Debit Discounts allowed account, Credit VAT account, Debit Receivable account

• Debit Discounts allowed account, Credit VAT account, Credit Receivable account

• Debit Discounts allowed account, Credit VAT account, Credit Bank account

What is the purpose of the receivables account?

• To record amounts owed by customers

• To record amounts owed to suppliers

• To record amounts owed to employees

• To record amounts owed by banks

What is the double-entry to record a payment received from a receivable?

• Debit Receivable account, Credit Bank account

• Debit Discounts allowed account, Credit Bank account

• Debit Bank account, Credit Receivable account

• Debit Bank account, Credit Discounts allowed account

What is the purpose of the VAT account?

• To record VAT amounts owed by customers

• To record VAT amounts owed by banks

• To record VAT amounts owed to HMRC

• To record VAT amounts owed to suppliers

What is the purpose of the discounts allowed account?

• To record discounts given to customers

• To record discounts received from suppliers

• To record discounts received from customers

• To record discounts given to employees

What is the purpose of the prompt payment discount?

• To encourage customers to pay early

• To encourage suppliers to provide discounts

• To encourage employees to work harder

• To encourage banks to provide loans