At the end of a period, the total of the sales day book is normally posted to which side of the sales account?
Correct answer: B. Credit side
- A. Debit side
- B. Credit side
- C. Both sides equally
- D. It is not posted to the sales account
Explanation
Sales represent income, so the sales account normally has a credit balance. Individual customer accounts are debited, while the total of credit sales is credited to the sales account.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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