Accountancy Unit 6

Purchases book is used to record

• all purchases of goods

• all credit purchases of assets

• all credit purchases of goods

• all purchases of assets

A periodic total of the purchases book is posted to the

• debit side of the purchases A/c

• debit side of the sales a/c

• credit side of the purchase a/c

• credit side of the sales a/c

Sales book is used to record

• all sales of goods

• all credit sales of assets

• all credit sales of goods

• all sales of assets and goods

The total of the sales book is posted periodically to the credit of

• sales account

• cash account

• purchases account

• journal proper

Purchase returns book is used to record

• return of goods to the supplier for which cash is not received immediately

• returns of assets to the supplier for which cash is not received

Sales return book is used to record

• Returns of goods by the customer for which cash is paid immediately

• Returns of goods by the customer for which cash is not paid immediately

• Return of assets by the customer for which cash is not paid immediately

• Return of assets by the customer for which cash is paid immediately

Purchases of fixed assets on credit basis is recorded in

• Purchases book

• Sales book

• Purchases returns book

• Journal proper

The source document or voucher used for recording entries in sales book is

• Debit note

• Credit note

• Invoice

• Cash receipt

Which of the following statement is not true?

• Cash discount is recorded in the books of accounts

• Assets purchased on credit are recorded in journal proper

• Trade discount is recorded in the books of accounts

• 3 grace days are added while determining the due date of the bill

Closing entries are recorded in

• Cash book

• Ledger

• Journal proper

• Purchases book