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Which of the following is False ?
  • a)
    An individual transaction of Purchase Book is posted to Purchases A/c
  • b)
    Purchase A/c in the ledger shows all purchases of goods (whether for cash or on credit)
  • c)
    A Dishonour of bill receivable (retained) is recorded in Journal Proper but dishonour of discounted bill receivable is recorded in three column cash book
  • d)
    An endorsement of bill receivable to a Creditor is recorded in journal proper but an endorsement of cheque to a creditor is recorded in three column cash book
Correct answer is option 'A'. Can you explain this answer?
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Which of the following is False ?a) A...

Explanation:

Individual transaction of Purchase Book posted to Purchases A/c:
- This statement is False because individual transactions from the Purchase Book are not posted directly to the Purchases A/c in the ledger.
- Instead, the total of all purchases recorded in the Purchase Book is transferred to the Purchases A/c periodically.

Purchase A/c in the ledger shows all purchases of goods:
- This statement is True. The Purchase A/c in the ledger shows all purchases of goods, whether they were made for cash or on credit.

Dishonour of bill receivable recorded in Journal Proper:
- A dishonour of bill receivable (retained) is recorded in Journal Proper, as it involves an adjustment in the accounting records.
- However, the dishonour of a discounted bill receivable is recorded in the three column cash book since it affects the bank balance directly.

Endorsement of bill receivable to a Creditor recorded in Journal Proper:
- An endorsement of a bill receivable to a Creditor is recorded in the Journal Proper as it involves a transfer of liability.
- On the other hand, the endorsement of a cheque to a creditor is recorded in the three column cash book as it affects the cash balance.

In conclusion, option 'A' is False because individual transactions from the Purchase Book are not posted directly to the Purchases A/c in the ledger.
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Community Answer
Which of the following is False ?a) A...
Individual transaction of purchase book is not entered in purchases a/c . All transactions of a period is entered as single transaction in purchases a/c. i. e purchases a/c Dr.
to sundry debtors a/c
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Which of the following is False ?a) An individual transaction of Purchase Book is posted to Purchases A/c b) Purchase A/c in the ledger shows all purchases of goods (whether for cash or on credit) c) A Dishonour of bill receivable (retained) is recorded in Journal Proper but dishonour of discounted bill receivable is recorded in three column cash book d) An endorsement of bill receivable to a Creditor is recorded in journal proper but an endorsement of cheque to a creditor is recorded in three column cash book Correct answer is option 'A'. Can you explain this answer?
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Which of the following is False ?a) An individual transaction of Purchase Book is posted to Purchases A/c b) Purchase A/c in the ledger shows all purchases of goods (whether for cash or on credit) c) A Dishonour of bill receivable (retained) is recorded in Journal Proper but dishonour of discounted bill receivable is recorded in three column cash book d) An endorsement of bill receivable to a Creditor is recorded in journal proper but an endorsement of cheque to a creditor is recorded in three column cash book Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is False ?a) An individual transaction of Purchase Book is posted to Purchases A/c b) Purchase A/c in the ledger shows all purchases of goods (whether for cash or on credit) c) A Dishonour of bill receivable (retained) is recorded in Journal Proper but dishonour of discounted bill receivable is recorded in three column cash book d) An endorsement of bill receivable to a Creditor is recorded in journal proper but an endorsement of cheque to a creditor is recorded in three column cash book Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is False ?a) An individual transaction of Purchase Book is posted to Purchases A/c b) Purchase A/c in the ledger shows all purchases of goods (whether for cash or on credit) c) A Dishonour of bill receivable (retained) is recorded in Journal Proper but dishonour of discounted bill receivable is recorded in three column cash book d) An endorsement of bill receivable to a Creditor is recorded in journal proper but an endorsement of cheque to a creditor is recorded in three column cash book Correct answer is option 'A'. Can you explain this answer?.
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