CA Foundation Exam > CA Foundation Questions > In which book of original entry, will you rec...
Start Learning for Free
In which book of original entry, will you record the following transactions?
Q.Purchases day book records:
- a)All cash purchases.
- b)All credit purchases
- c)Credit purchases of goods in trade.
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
In which book of original entry, will you record the following transac...
The correct book of original entry to record the given transactions is the "Credit Purchases Day Book".
Explanation:
The Credit Purchases Day Book is a subsidiary book used in double-entry bookkeeping to record all credit purchases of goods in trade. It is a chronological record of all credit purchases made by the business.
Let's break down the options given in the question and see why option 'C' is the correct answer:
a) All cash purchases: Cash purchases are not recorded in the Credit Purchases Day Book because this book specifically deals with credit transactions. Cash purchases would be recorded in the Cash Book or the Purchases Day Book.
b) All credit purchases: While it is true that the Credit Purchases Day Book records credit purchases, this option is not entirely correct as it is too broad. The Credit Purchases Day Book specifically focuses on credit purchases of goods in trade, as mentioned in option 'C'.
c) Credit purchases of goods in trade: This option is the correct answer. The Credit Purchases Day Book is used to record credit purchases of goods that are intended for resale. These purchases are made on credit from suppliers or vendors and are typically meant to be sold to customers.
d) None of the above: This option is incorrect as the correct answer has already been determined to be option 'C'.
Summary:
The Credit Purchases Day Book is the book of original entry where credit purchases of goods in trade are recorded. It provides a detailed record of credit purchases made by the business and helps in tracking and managing accounts payable.
Explanation:
The Credit Purchases Day Book is a subsidiary book used in double-entry bookkeeping to record all credit purchases of goods in trade. It is a chronological record of all credit purchases made by the business.
Let's break down the options given in the question and see why option 'C' is the correct answer:
a) All cash purchases: Cash purchases are not recorded in the Credit Purchases Day Book because this book specifically deals with credit transactions. Cash purchases would be recorded in the Cash Book or the Purchases Day Book.
b) All credit purchases: While it is true that the Credit Purchases Day Book records credit purchases, this option is not entirely correct as it is too broad. The Credit Purchases Day Book specifically focuses on credit purchases of goods in trade, as mentioned in option 'C'.
c) Credit purchases of goods in trade: This option is the correct answer. The Credit Purchases Day Book is used to record credit purchases of goods that are intended for resale. These purchases are made on credit from suppliers or vendors and are typically meant to be sold to customers.
d) None of the above: This option is incorrect as the correct answer has already been determined to be option 'C'.
Summary:
The Credit Purchases Day Book is the book of original entry where credit purchases of goods in trade are recorded. It provides a detailed record of credit purchases made by the business and helps in tracking and managing accounts payable.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect 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 In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect 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 In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect 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 In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect 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 In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect 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 In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In which book of original entry, will you record the following transactions?Q.Purchases day book records:a)All cash purchases.b)All credit purchasesc)Credit purchases of goods in trade.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup