Which transaction is recorded in the sales day book?
Correct answer: B. Credit sale of goods
- A. Cash sale of goods
- B. Credit sale of goods
- C. Credit purchase of machinery
- D. Return of goods to a supplier
Explanation
The sales day book records credit sales of goods dealt in by the business. Cash sales are recorded in the cash book, while machinery purchases and returns belong in other records.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Double Entry and Books of Prime Entry
34 free Double Entry and Books of Prime Entry MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Double Entry and Books of Prime Entry questions
What is the basic rule of the double-entry system?
The purchases day book is mainly used to record which transactions?
Which item is normally recorded in the purchases returns book?
A cash book with cash and bank columns serves which two accounting functions?
When cash is deposited into the business bank account from the cash in hand, what type of entry is made in the cash book?