Books of Prime Entry and Ledgers

A sales invoice is a ...

• Source document

• Book of prime entry

Cash sales are recorded in the Sales Journal

• True

• False

Credit sales invoices are recorded in ...

• Sales returns journal

• Purchases journal

• Purchases returns journal

• Sales journal

Why is a Sales Journal used?

• Useful to have a list of all invoices

• Can see which customers buy the most items

• Reduces the number of transactions in the double-entry accounts

A purchases credit note is recorded in the ...

• Sales journal

• Sales returns journal

• Purchases journal

• Purchases returns journal

A sales credit note is recorded in the ...

• Sales journal

• Sales returns journal

• Purchases journal

• Purchases returns journal

The Purchases Ledger records ...

• All the business's individual customer accounts

• All the business's individual supplier accounts

• All other accounts

• Purchases invoices

The Sales Ledger records ...

• All the business's individual customer accounts

• All the business's individual supplier accounts

• All other accounts

• Purchases invoices

The General Ledger records ...

• All the business's individual customer accounts

• All the business's individual supplier accounts

• All other accounts

• Purchases invoices

The account of an individual customer records ...

• Sales invoices and sales credit notes for that customer

• Just the sales invoices for that customer

• Just the sales credit notes for that customer