Question No.1:-
State which books of original entry the following transactions would be entered into:
(a) ABC pays you $100
(b) You return goods to AB to the value of $100
(c) Customer AC returns goods to the value of $150
(d) You pay Jim $500
(e) You receive an invoice from A for $120
(f) Your accounts clerk ask you for $15 to buy stationery
(g) You send customer D an invoice for $700
(h) Your business pays Mr.C, a supplier $1000
Answer to Question. No.1:-
(a) Cash book
(b) Purchase returns day book
(c) Sales returns day book
(d) Cash book
(e) Purchase day book
(f) Petty cash book
(g) Sales day book
(h) Cash book
Question No 2:-
Name the seven books of original entry
Answer to Question No.2:-
(1) Sales day book,
(2) Sales returns day book
(3) Purchase day book
(4) Purchase return day book
(5) Cash book
(6) Petty cash book
(7) Journal
Question No.3:-
What is the difference between the cash book and the petty cash book?
Answer to Question No.3:
The cash book records amounts into or out of the bank account. The petty cash book records payments of small amounts of cash.
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