Day books
Before anything reaches the ledger it is written in a book of prime entry. Credit sales and credit purchases each have their own day book.
In this room: 2 tasks, 8 questions
- What a day book is4 questions
- Totalling the day book4 questions
A book of prime entry is where a transaction is first written down, from its source document.
- Sales day book
- sales made on credit, from the sales invoices
- Purchases day book
- purchases made on credit, from the suppliers' invoices
A sale paid for on the spot does not go in either. It goes in the cash book.
Answer the questions below
3 more questions follow in this task.
At the end of the period the day book is added up. The total is posted to the ledger in one go.
- Sales day book total
- debit Trade receivables, credit Sales
- Purchases day book total
- debit Purchases, credit Trade payables
| Date | Customer | Invoice | Amount |
|---|---|---|---|
| 3 Oct | Corner Café | 101 | 220.00 |
| 9 Oct | Park Hotel | 102 | 480.00 |
| 17 Oct | Corner Café | 103 | 150.00 |
| 24 Oct | Mill Deli | 104 | 310.00 |
Answer the questions below
3 more questions follow in this task.