BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sales journal
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Purchases account
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Cash account
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Return inwards journal
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Detailed explanation-1: -The general ledger is not considered a book of original entry, if it contains summarized entries posted to it from one of the underlying accounting journals.
Detailed explanation-2: -Journal is known as books of original entry because in this book business transactions are initially recorded.
Detailed explanation-3: -A book of original entry refers to an accounting book or journal where all transactions are initially recorded. This book can also be called a first entry or preliminary entry. It is the journal in which invoices, vouchers, cash transactions and others are first recorded before they are transferred to ledger accounts.
Detailed explanation-4: -Cash purchases do not find place in purchase day book as they are recorded in Cash book.
Detailed explanation-5: -Only credit purchases are recorded in Purchase book and not cash purchases. Goods means those things that are purchased or produced for resale in business. Any purchase of asset is not recorded in Purchase book.