Y10 Accounting - C7 Books of Prime Entry

What is a book of prime entry?

• A report for tax purposes

• A summary of all business activities

• A type of financial statement

• A document for recording transactions before the ledger

Which of the following is NOT a type of book of prime entry?

• Cash book

• Inventory ledger

• Purchases journal

• Sales journal

What is recorded in the sales journal?

• Purchases

• Sales returns

• Credit sales

• Cash sales

How is the sales journal updated?

• Using cash register tapes

• Using copies of invoices sent to customers

• Using supplier invoices

• Using bank statements

What is the purpose of the sales returns journal?

• To record cash sales

• To record goods returned by customers

• To record credit purchases

• To record supplier payments

What is the first step when goods are sold on credit?

• Credit the sales account

• Enter the date, customer name, and invoice total

• Debit the supplier's account

• Record the total sales at month-end

What is recorded in the purchases journal?

• Cash sales

• Credit purchases

• Sales returns

• Sales discounts

What should be done at the end of the month for the purchases journal?

• Credit the purchases account

• Post to the sales ledger

• Debit the purchases account

• Record individual transactions

What is the purpose of the purchases returns journal?

• To record credit sales

• To record cash sales

• To record sales discounts

• To record goods returned to suppliers

When goods are returned to a credit supplier, what is the first step?

• Debit the supplier's account

• Credit the purchases returns account

• Enter the date, supplier name, and credit note total

• Record the total returns at month-end