Books of original entry - recording credit purchases

Entries in the purchases book are taken from:

• receipts

• credit notes

• invoices

• debit notes

The purchases book is a book of first entry for:

• unpaid expense items

• fixtures bought on credit

• goods for resale bought for cash

• goods for resale bought on credit

Which of the following steps in the accounting cycle should follow the recording of transactions in subsidiary books?

• preparation of an income statement

• preparation of a trial balance

• extracting details from source documents

• Posting information to ledger accounts

Which of the following steps in the accounting cycle should follow the receipt of a source document?

• making entries in a subsidiary book

• balancing a ledger account

• preparing an income statement

• preparing a statement of financial position (balance sheet)

What pieces of information is recorded in the purchases book?

• invoice number, amount due, name of supplier, date

• invoice number, product description, amount due, date

• invoice number, amount due, quantity, name of supplier

• invoice number, amount due, name of customer, date

What is the correct double entry for the purchase of goods for resale?

• credit purchases account, debit account payable

• debit purchases account, credit account payable

• debit bank account, credit purchases

• credit bank account, debit purchases

Which of the following is NOT one of the books of original entry?

• Sales book

• Cash book

• General ledger

• Petty cash book

This book is used to record any returns to suppliers of goods purchased...

• Returns inward book

• Purchases book

• General journal

• Returns outward book