Accounts by BPP Learning Media

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2 Which of the following is not a book of prime entry? A B C D 3 Which of the following is a source document for petty cash? A B C D 4 42 Purchase invoice Quotation Sales invoice Receipt and claim form What is the purchase returns day book used to record? A B C D 5 Sales invoice Purchase day book Sales day book Journal Supplier's invoices Customer's invoices Details of goods returned to suppliers Details of goods returned by customers What is the difference between the cash book and the petty cash book?

2 The purchase day book A business also keeps a record in the purchase day book of all the invoices it receives. Definition The purchase day book is the book of prime entry for credit purchases. An extract from a purchase day book might look like this. 80 Points to note: (a) There is no 'invoice number' column, because the purchase day book records other people's invoices, which have all sorts of different numbers. (b) Like the sales day book, the purchase day book analyses the invoices which have been sent in.

The cash book is the book of prime entry for the bank account. • Most businesses keep petty cash on the premises, which is topped up from the main bank account. Under the imprest system, the petty cash is kept at an agreed sum, so that each topping up is equal to the amount paid out in the period. Quick quiz 1 Name four pieces of information normally shown on an invoice. 2 Which of the following is not a book of prime entry? A B C D 3 Which of the following is a source document for petty cash?

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