| 1. |
Mention the subsidiary book in which following transactions are recorded:a) Purchased machinery on Cr.b) Purchased goods on Cr.c) Goods returned by Drs.d) Sale of old furniture for cashe) Bad debtsf) Sale of vehicle on creditg) Sale of goods on credit |
|
Answer» Answer: Answer Text Solution : (i) Journal Proper: Because purchase of fixed assets on credit is recorded in Journal Proper. (ii) Sales BOOK: Because Sales Book records only credit sales of goods. (iii) Sales Return Book: Because goods returned by customer are recorded in Sales Return Book. (iv) PURCHASES Book: Because Purchases Book records only Credit Purchases of goods. (v) Journal Proper: Because Journal Proper records all those transactions which cannot be recorded in any of the other subsidiary books . Interest on proprietor's capital is also one of those items which can only be recorded in Journal Proper. (VI) Purchases Return Book: Because it records only goods returned by the firm to its suppliers. (VII) Cash Book: Because it records cash receipts and cash PAYMENTS. |
|