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Name the books of original entry where the following transactions will be recorded with reasons thereof: (i) Goods purchased from Ram Lal for Rs. 5,000 on credit. (ii) Provision for doubtful debts created @ 5% on debtors with books value of Rs. 10,000 (iii) Defective goods sold to Babita on credit worth Rs. 4,000 were returned by her. (iv) Purchased furniture on credit from Mr. Ratan Singh for Rs. 15,000 for use in the business. |
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Answer» (i) Purchases Book because it is credit purchase of goods for sale. (ii) Journal Proper because it will not be recorded in any other subsidiary books. (iii) Sales Return Book because it is return of goods sold. (iv) Journal Proper because it will not be recorded in other subsidiary books. |
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