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Mention the subsidiarybooks in which following transactions arerecorded along with reason thereof : (i) Purchase of furniture on credit for use in shop. (ii) Sale of goods on credit. (iii) Goods returned by Debtors. (iv)Purchase of stock on credit. (v) Providing for interest on capital to proprietor. (vi) Goods returned to creditors. (vii) Sale of goods for cash. |
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Answer» 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 recordedin Sales Return Book. (iv) Purchases Book: Because Purchases Book records only Credit Purchases of goods. (v) Journal Proper: Because Journal Proper records all those transactionswhich cannot be recorded in any of the other subsidiarybooks . Interest on proprietor'scapital is also ONE of those items which can only berecorded 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. |
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