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Hi
I am using the BPP textbook for F3 and come across these rules:
“Only credit purchases are listed in the purchase daybook
Only sales on credit are listed in the sales daybook”For my understanding, why are cash sales not posted on the sales daybooks. Surely every sale should be noted. Same applies to every purchase? Where are they posted to then as surely every transaction should be recorded?
Thanks
To further elaborate the questions from the text book is: “How is the total of the purchase day book posted to the nominal ledger?”
Answer is “Debit purchases, Credit Payables Control”
Now i understand why it is a debit purchases but for Credit shouldnt it be a mixture of Cash and Payables control?
For example two transactions:
Purchased £10 for goods x by cash
Purchased £100 for goods y on creditPurchase t account is debit £110
Cash at bank is credit £10
Payabales accounts is credit £100No???
The purchase day book only records purchases on credit.
Purchases for cash are recorded in the cash book.I really do recommend that you watch the free lecture on Books of Prime Entry.
Credit sales only record in sales day book but all sale accounted for in the ledger
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