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ACCA Applied Knowledge · Financial Accounting · Sales and purchases

Which one of the following best describes the role of the sales day book in a double-entry system?

The sales day book is a book of prime entry listing credit sales invoices. Periodic totals are posted to the general ledger accounts and individual invoices are posted to customer accounts in the receivables ledger. It does not record cash receipts, which go in the cash book.

  1. AIt is a book of prime entry from which totals are posted to the general ledger and individual invoices to the receivables ledgerCorrect
  2. BIt is a ledger account recording the total owed by all customers
  3. CIt is a record of cash received from credit customers
  4. DIt is a book recording all sales including cash sales at the point of sale

Explanation

The sales day book is a book of prime entry listing credit sales invoices. Its totals are posted to the general ledger (receivables control and sales, plus sales tax) and each invoice to the customer's account. It is not a ledger account, and cash received is recorded in the cash book.

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