Question 1
Books of Original EntryWhich of the following is the book of original entry for all payments and receipts whether by cash or cheque?
- A.Sales Day Book
- B.Purchases Day Book
- C.Cash Book
- D.Cheque Book
- E.Journal Book
Show the answer and explanation
Answer: C (Cash Book)
Explanation
The cash book records every receipt and payment, in cash or through the bank, so it is both a book of original entry and a ledger account.