Specific Purpose Books — Important Questions

Only credit sales of goods in which the firm deals

Step 1: Sales Book (Sales Journal) is a special purpose book specifically for credit sales. Step 2: It does NOT record cash sales – those go into the Cash Book. Step 3: It also does NOT record credit sales of items other than trading goods (e.g., sale of old machinery on credit goes to Journal Proper). Step 4: For example, if a firm deals in electronics, only credit sales of electronics are recorded in the Sales Book. Step 5: Therefore, Option B is the correct and complete answer.

Credit side of Sales Account – 'Sundries as per Sales Book'

Step 1: When goods are sold, the Sales Account is credited (income increases on the credit side). Step 2: At month-end, the total of the Sales Book is posted to the CREDIT side of the Sales Account. Step 3: The entry in the Particulars column reads: 'Sundries as per Sales Book'. Step 4: Each individual customer (debtor) account is posted on the Debit side of their respective accounts (because customers owe money to the firm). Step 5: Option B correctly states credit side of Sales Account – this is the right answer.

Credit Note

Step 1: When a customer returns goods, the seller must acknowledge the return. Step 2: The seller prepares a Credit Note in favour of the customer – this means the seller is crediting the customer's account (reducing the amount the customer owes). Step 3: This Credit Note number is recorded in the Sales Returns Book. Step 4: Contrast this with Debit Note – that is prepared by the BUYER when returning goods to the supplier. Step 5: Therefore, Option C (Credit Note) is correct. Remember: Seller issues Credit Note → Sales Returns Book.

Credited with ₹2,800

Step 1: Calculate the amount – 2 tables × ₹1,400 = ₹2,800. Step 2: From M/s Furniture Mart's (seller's) perspective, when a customer returns goods, the debtor (Kohli Furniture) owes LESS money. Step 3: To reduce the amount owed by the debtor, we CREDIT the customer's account. Step 4: The entry is: Sales Returns A/c Dr. ₹2,800 / To Kohli Furniture A/c ₹2,800. Step 5: So Kohli Furniture's account is CREDITED with ₹2,800 – Option B is correct.