What does the sales journal record?
Credit sales
What does the purchases journal record?
Credit Purchases
What does the sales ledger contain?
Return Inwards and Accounts Receivable
What does the purchases ledger record?
Return outwards and Accounts payables
Return inwards is recorded in the return inwards ledger true or false?
False
What type of transactions are found in the Cash Book?
Cash and Bank transactions
What type of transactions are recorded in the petty cash book?
Small cash payments due
What is meant by the imprest system for petty cash book?
A system where the cashier starts with an opening balance "float" and at the end of the month the float is replaced with all of the money that was spent
How is a cash sale recorded in the Cash Book
On the debit side under the cash column
If a loan is to be repaid using a cheque how would this be recorded under the Cash Book
On the credit side under Bank
If there is a balance brought down on the credit side of the Cash book this indicates what?
An overdraft
A cash discount is given for the sale of some goods where would this be recorded in the cash book?
Discounts Allowed
A trade discount is given where would this be shown?
On the Invoice
A cash discount of $15 is given from a cash sale worth $200 how much money is recorded as cash?
$185 (200-15)
Where are total amounts transferred after the journal has been completed for a period?
General Ledger
