name three books of first entry which deal with credit transactions?
Name three books of first entry which deal with credit transactions?
Answer:
Three common books of first entry that deal with credit transactions in accounting are:
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Sales Journal (Sales Day Book): The sales journal is used to record credit sales of goods or services. It typically includes columns for details such as date, invoice number, customer name, description of goods sold, sales amount, and tax.
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Purchases Journal (Purchases Day Book): The purchases journal is used to record credit purchases of goods or services. It includes columns for information like date, invoice number, supplier name, description of goods purchased, purchase amount, and tax.
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Cash Receipts Journal: The cash receipts journal is used to record all transactions where the business receives cash. However, it can also include credit transactions when payments are expected from customers at a later date. It includes columns for details such as date, customer name, invoice number, description of payment, amount received, and any discounts given.