Accounting · Ledger and Cash Book

Evaluate the procedural accuracy of the following accounting statements: Statement 1: A Cash Book that includes a discount column is technically a book of original entry as well as a ledger account, but the discount columns themselves do not represent a ledger account and their totals must be posted to the discount allowed and discount received accounts in the general ledger. Statement 2: The sales return book is used to record the return of goods sold on credit, and every entry in this book must be supported by a credit note issued to the customer, which serves as the primary source document. Statement 3: When a customer's account in the ledger shows a credit balance, it implies that the customer is a debtor to the business, and this balance will be reflected as a current asset in the trial balance. Statement 4: The process of balancing a ledger account involves adding the totals of both sides and carrying forward the difference as a balance b/d to the same side in the next accounting period.