Multiple choice

The total of the sales book is posted periodically to the credit of a

  1. sales account

  2. cash book

  3. journal book

  4. profit and loss account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The sales book is a subsidiary book that records all credit sales. Its total is periodically posted to the credit of the Sales account in the ledger. This follows the principle that sales revenue has a credit balance. Cash book records cash transactions, journal book records general journal entries, and profit and loss account records expenses and incomes.

Keep practicing — related questions