Day: May 17, 2019

Which of the following is a ‘Book of Original Entry’?

Select ONE answer:

1. The sales (debtors) ledger.
2. The purchases journal (daybook).
3. The general (nominal) ledger.
4. The purchases (creditors) ledger.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Data is ‘posted’ to the Sales Ledger from the Sales Journal, the Cash Book and possibly the Journal. Therefore, the Sales Ledger is not the first place in which the information in it is recorded.
2. Books of original entry are so called because they are the first (original) place in which transactions are recorded. They are also known as ‘Books of Prime Entry’.
3. Data is ‘posted’ to the general ledger from the Books of Original Entry. Therefore, the General Ledger is not the first place in which the information in it is recorded.
4. Data is ‘posted’ to the purchases ledger from the Purchases Journal, the Cash Book and possibly the Journal. Therefore, the Purchases Ledger is not the first place in which the information in it is recorded.

 

This work is licensed under a Creative Commons Attribution 4.0 International License.