Question 1

Which book of original entry is used to record all credit purchases of goods?

Accepted Answer

The Purchases Book (or Purchases Journal) is a special purpose book used specifically for recording credit purchases of goods that are dealt in by the business. Cash purchases are recorded in the cash book.

Question 2

Which of the following transactions is recorded in the Sales Book?

Accepted Answer

The Sales Book is used exclusively for recording credit sales of goods dealt in by the enterprise. Cash sales and sale of assets are recorded elsewhere.

Question 3

Return of goods by a customer is recorded in which of the following books?

Accepted Answer

Sales Return Book (also known as Return Inward Book) is used to record goods returned by customers for which credit was originally given through sales.

Question 4

Goods returned to suppliers are recorded in:

Accepted Answer

Purchases Return Book (also known as Return Outward Book) is used to record goods returned to the suppliers/creditors from whom they were purchased on credit.

Question 5

A Cash Book with Cash and Discount columns is known as:

Accepted Answer

A Cash Book with cash and discount columns is known as a Two-column Cash Book or Double-column Cash Book.

Recording of Transactions - II