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| 1. |
Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash ? Give reasons. |
| Answer» Solution :Yes. Sales can be EITHER in cash or on credit . Credit sales are recorded in theSales BOOK and cash sales in the Cash Book. The SOURCE documents for RECORDING entries in the Sales Book are invoices or BILLS issued to customers. Entries are recorded with the net amount of the invoice after deducting trade discount. | |