Which of the following are entered in the Purchases Journal (otherwise known as the Purchases Daybook)?
Select ONE answer:
- Payments to suppliers.
- Trade discount.
- Invoices received from suppliers.
- Cash discount (also known as settlement discount) received.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Accounting KS5 classes.
The answer is 3
- Payments to suppliers are entered in the Cash Book (or Cheque Payments Book).
- Invoices are entered in the Purchases Journal (Purchases Daybook) net of trade discount.
- Correct
- Discounts received are entered in the Cash Book (or Cash Receipts Book).
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