Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.
A___________ is sent to a customer when he returns goods :
The Balance of Sales day book is Rs. 25,000. Rs. 5,000 were recovered from debtors. Then balance of Day Book will be transferred by which amount ?
Goods were sold on credit basis to A Brothers for Rs. 1,000.
Which of the following are subsidiary books:
Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work.
An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.
The source document or voucher used for recording entries in sales Book is :
Sales Book records only credit sale of goods to the customers. When goods are sold, invoices are sent out to them and that only becomes the source document or voucher for recording transaction in sale book.
The total of the Purchase Day Book is posted periodically to the :
Unpaid salary for Rs. 340 is to be provided for in the accounts.
Total of Sales Book will be posted :
Goods Outward Journal is meant for recording all returns of goods
A purchase returns journal (also known as returns outwards journal/purchase debits daybook) is a prime entry book or a daybook which is used to record purchase returns. In other words, it is the journal which is used to record the goods which are returned to the suppliers.
Goods sold for cash Rs. 10,000 plus 10% sales tax. Sales A/c will be credited by:
A bills receivable of Rs. 1,000, which was received from a debtor in full settlement for a claim of Rs. 1,100 is dishonoured.
The total of the purchases day book is posted periodically to the debit of :
In Purchases Book the record is in respect of
Credit purchase of stationery worth Rs. 5,000 by a stationery dealer.
Purchase of furniture on credit should be recorded in _______
Purchase of furniture is not for the trading purposes hence furniture cannot be included as goods and recorded in purchase book. Since the purchases are made on credit hence they cannot be entered in the cash book. Therefore, purchase of furniture will be recorded in journal.
Total of the Purchase Return Book is posted to the ______ side of Purchase Return Account in the ledger:
A second hand motor car was purchased on credit from B Brothers for Rs. 10,000.
The debit note issued are used to prepare
Accounting for partial recovery from Mr. C of an amount of Rs. 2,000 earlier written off as bad debt.
The total of the Sales Book is posted to
Purchases of Fixed assets on credit basis is recorded in :
Purchase of fixed assets on credit is originally recorded in Journal Proper. On the assumption that the asset was purchased on credit, the initial entry is a credit to accounts payable and a debit to the applicable fixed asset account for the cost of the asset.
A note sent by buyer on return of goods is :
Buyer of goods is customer from the point of view of business. In his books our account balance would show a credit balance. When he returns the goods to us, he debits our account and to show this fact he sends a debit note to us indicating the above fact.
Purchase goods from E worth Rs. 5,000 on credit basis.
Total of the sales book for March indicates:
Trade discounts are:
Trade discount is not recorded in books because trade discount is given only to traders. And this happens between the wholesalers and retails.
whereas cash discount is recorded in books because it is given on the products which is given by the retailers to the consumers.
for eg- if a retailer buys goods from wholesalers then,if,the wholesaler provide/give any discount on the products which the retailer bought. then this kind of discount is called trade discount.
PURCHASE Book is used to record
A purchase book records only all credit purchases of goods and trade. Cash purchases are recorded via the cash book while the credit purchase of an asset is recorded via a journal entry.
The Sales Book
A Sales book is a record of all credit sales made by a business. It is one of the secondary book of accounts and unlike cash sales which are recorded in cash book, sales book is only to record credit sales. The amount entered in the sales book is on behalf of invoices supplied to purchasers. A Sales book is also called Sales Journal or Sales Day Book.
A debit note for Rs. 2,000 issued to Mr. F for goods returned by us is to be accounted for.
It is an Purchase Return.