CA Foundation Exam > CA Foundation Questions > The total of the Sales Book is posted toa)The...
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The total of the Sales Book is posted to
- a)The credit of the Sales Account.
- b)Credit of the Purchases Account,
- c)Credit of the Capital Account
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The total of the Sales Book is posted toa)The credit of the Sales Acco...
Sales book is a subsidiary book that records all the credit sales of the goods. It is totalled normally on a monthly basis and the total will be posted to the credit side of the Sales A/c. The total of the Sales book is not entered but posted to the Sales A/c because it is transferred from the sales book.
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The total of the Sales Book is posted toa)The credit of the Sales Acco...
The total of the Sales Book is posted to the credit of the Sales Account.
Explanation:
The Sales Book is a subsidiary book that records all credit sales made by a business. It contains details such as the date of the sale, the name of the customer, the amount of the sale, and any other relevant information. The purpose of the Sales Book is to keep a record of all credit sales transactions for easy reference and to ensure accurate and up-to-date financial records.
When the total of the Sales Book is posted, it means that the total amount of credit sales recorded in the Sales Book is transferred to the general ledger. The general ledger is the main accounting record that contains all the accounts used by a business, including the Sales Account.
The Sales Account is a nominal account that is used to track all sales made by a business. It is classified as a revenue account and is part of the income statement. The Sales Account is credited when credit sales are made because it represents an increase in revenue for the business.
By posting the total of the Sales Book to the credit of the Sales Account, the business is updating its general ledger to reflect the total amount of credit sales made during a specific period. This ensures that the financial statements accurately reflect the revenue generated by the business from credit sales.
In summary, the total of the Sales Book is posted to the credit of the Sales Account because it represents an increase in revenue for the business. This helps in accurately recording and reporting the credit sales made by the business.
Explanation:
The Sales Book is a subsidiary book that records all credit sales made by a business. It contains details such as the date of the sale, the name of the customer, the amount of the sale, and any other relevant information. The purpose of the Sales Book is to keep a record of all credit sales transactions for easy reference and to ensure accurate and up-to-date financial records.
When the total of the Sales Book is posted, it means that the total amount of credit sales recorded in the Sales Book is transferred to the general ledger. The general ledger is the main accounting record that contains all the accounts used by a business, including the Sales Account.
The Sales Account is a nominal account that is used to track all sales made by a business. It is classified as a revenue account and is part of the income statement. The Sales Account is credited when credit sales are made because it represents an increase in revenue for the business.
By posting the total of the Sales Book to the credit of the Sales Account, the business is updating its general ledger to reflect the total amount of credit sales made during a specific period. This ensures that the financial statements accurately reflect the revenue generated by the business from credit sales.
In summary, the total of the Sales Book is posted to the credit of the Sales Account because it represents an increase in revenue for the business. This helps in accurately recording and reporting the credit sales made by the business.
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The total of the Sales Book is posted toa)The credit of the Sales Account.b)Credit of the Purchases Account,c)Credit of the Capital Accountd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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