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In which book of original entry, will you record the following transactions?
Q.Purchased goods from E worth Rs. 5,000 on credit basis.
- a)Bills Receivable Book
- b)Purchases Book
- c)Journal Proper (General Journal)
- d)Purchases Return
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
In which book of original entry, will you record the following transac...
Explanation:
What is the Purchases Book?
The Purchases Book is a book of original entry used to record all credit purchases of goods by a business. It is also known as a Purchase Journal. The Purchase Book is used to record purchases of goods only, not assets, expenses, or services. The Purchases Book is a part of the double-entry accounting system, where each transaction is recorded twice, once as a debit and once as a credit.
Why is the Purchases Book used for this transaction?
The transaction given in the question is the purchase of goods on credit basis. The Purchases Book is used to record all credit purchases of goods by a business. Hence, the correct answer is option 'B', which is the Purchases Book.
What are the other options?
a) Bills Receivable Book - This book is used to record bills receivable that are received by the business. Bills receivable are written promises by a customer to pay a certain amount of money on a specific date.
c) Journal Proper (General Journal) - This book is used to record all transactions that cannot be recorded in any other book of original entry. These transactions are usually rare and complex.
d) Purchases Return - This book is used to record all goods that are returned to the supplier by the business. This book is used to record credit notes issued by the supplier for the returned goods.
Conclusion:
The correct book of original entry to record the given transaction is the Purchases Book, as it is a credit purchase of goods. The other options given in the question are not applicable to this transaction.
What is the Purchases Book?
The Purchases Book is a book of original entry used to record all credit purchases of goods by a business. It is also known as a Purchase Journal. The Purchase Book is used to record purchases of goods only, not assets, expenses, or services. The Purchases Book is a part of the double-entry accounting system, where each transaction is recorded twice, once as a debit and once as a credit.
Why is the Purchases Book used for this transaction?
The transaction given in the question is the purchase of goods on credit basis. The Purchases Book is used to record all credit purchases of goods by a business. Hence, the correct answer is option 'B', which is the Purchases Book.
What are the other options?
a) Bills Receivable Book - This book is used to record bills receivable that are received by the business. Bills receivable are written promises by a customer to pay a certain amount of money on a specific date.
c) Journal Proper (General Journal) - This book is used to record all transactions that cannot be recorded in any other book of original entry. These transactions are usually rare and complex.
d) Purchases Return - This book is used to record all goods that are returned to the supplier by the business. This book is used to record credit notes issued by the supplier for the returned goods.
Conclusion:
The correct book of original entry to record the given transaction is the Purchases Book, as it is a credit purchase of goods. The other options given in the question are not applicable to this transaction.
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In which book of original entry, will you record the following transac...
In purchases book, transactions relating to credit purchases are recorded.
As the question specifically says that the transaction(purchases) is of credit nature , it is recorded in purchases book
As the question specifically says that the transaction(purchases) is of credit nature , it is recorded in purchases book
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In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. Can you explain this answer?
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In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. 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 In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. 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 In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. Can you explain this answer?.
In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. 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 In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. 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 In which book of original entry, will you record the following transactions?Q.Purchased goods from E worth Rs. 5,000 on credit basis.a)Bills Receivable Bookb)Purchases Bookc)Journal Proper (General Journal)d)Purchases ReturnCorrect answer is option 'B'. Can you explain this answer?.
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