CA Foundation Exam  >  CA Foundation Questions  >  Postage stamps purchased for Rs. 30 by busine... Start Learning for Free
Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:
  • a)
    Purchase book 
  • b)
    Cash Book 
  • c)
    Petty Cash Book 
  • d)
    Journal 
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Postage stamps purchased for Rs. 30 by business. This transaction will...
Transaction recorded in Petty Cash Book

Petty Cash Book is used to record small cash transactions of a business. In this case, the purchase of postage stamps for Rs. 30 is a small cash transaction that can be easily recorded in the Petty Cash Book.

Explanation:

- Petty Cash Book: As mentioned earlier, Petty Cash Book is used to record small cash transactions. It is maintained by the person responsible for handling petty cash in the business. It contains columns for date, particulars, voucher number, amount, and balance.
- Purchase Book: Purchase Book is used to record credit purchases of goods. Since the transaction in question involves cash purchase of postage stamps, it cannot be recorded in the Purchase Book.
- Cash Book: Cash Book is used to record all cash transactions of a business. However, Petty Cash transactions are not recorded in the Cash Book as they are recorded separately in the Petty Cash Book.
- Journal: Journal is used to record all non-cash transactions of a business. Since the transaction in question involves cash purchase, it cannot be recorded in the Journal.

Conclusion:

Since the transaction involves a small cash purchase, it can be easily recorded in the Petty Cash Book. Petty Cash Book is a subsidiary book of accounts that helps in maintaining proper records of small cash transactions.
Free Test
Community Answer
Postage stamps purchased for Rs. 30 by business. This transaction will...
Purchase of postage stamps in business is considered as day-to-day expenses and these are of very small amounts because of this these are also known as petty expenses and are recorded in petty cash book.
Explore Courses for CA Foundation exam
Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer?
Question Description
Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. 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 Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. 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 Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:a)Purchase bookb)Cash Bookc)Petty Cash Bookd)JournalCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev