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Can you explain the answer of this question below:
Which of the following statement is correct?
- A:All Entries except cash transactions can be recorded through journal.
- B:Ledger is a part of subsidiary book.
- C:Purchase book records all the purchases whether cash or credit.
- D:Bank column of cash book always has debit balance.
The answer is a.
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Verified Answer
Can you explain the answer of this question below:Which of the followi...
First listen the reason behind all 3 incorrect options.
b).. ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
b).. ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
Most Upvoted Answer
Can you explain the answer of this question below:Which of the followi...
Explanation:
Journal is the book of original entry where all the transactions are recorded in a chronological order. The entries in the journal can be made for all types of transactions except cash transactions. Cash transactions are recorded in the cash book. Therefore, option A is the correct statement.
Let's understand the other options:
b) Ledger is a part of subsidiary book - This statement is incorrect. Ledger is not a part of subsidiary book. Ledger is the principal book where all the transactions are posted from the journal and subsidiary books.
c) Purchase book records all the purchases whether cash or credit - This statement is incorrect. Purchase book records only credit purchases. Cash purchases are recorded in the cash book.
d) Bank column of cash book always has a debit balance - This statement is incorrect. The bank column of the cash book can have both debit or credit balance depending on the nature of the transaction. If the cash is deposited in the bank, it will have a credit balance and if the cash is withdrawn from the bank, it will have a debit balance.
In conclusion, the correct statement is option A where all the entries except cash transactions can be recorded through the journal.
Journal is the book of original entry where all the transactions are recorded in a chronological order. The entries in the journal can be made for all types of transactions except cash transactions. Cash transactions are recorded in the cash book. Therefore, option A is the correct statement.
Let's understand the other options:
b) Ledger is a part of subsidiary book - This statement is incorrect. Ledger is not a part of subsidiary book. Ledger is the principal book where all the transactions are posted from the journal and subsidiary books.
c) Purchase book records all the purchases whether cash or credit - This statement is incorrect. Purchase book records only credit purchases. Cash purchases are recorded in the cash book.
d) Bank column of cash book always has a debit balance - This statement is incorrect. The bank column of the cash book can have both debit or credit balance depending on the nature of the transaction. If the cash is deposited in the bank, it will have a credit balance and if the cash is withdrawn from the bank, it will have a debit balance.
In conclusion, the correct statement is option A where all the entries except cash transactions can be recorded through the journal.
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Community Answer
Can you explain the answer of this question below:Which of the followi...
First listen the reason behind all 3 incorrect options.
b).. ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
all subsidiary books comes under journal and they are known as special purpose journal... it is only a cash book which is known as journalised ledger
b).. ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
all subsidiary books comes under journal and they are known as special purpose journal... it is only a cash book which is known as journalised ledger
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Can you explain the answer of this question below:Which of the following statement is correct?A:All Entries except cash transactions can be recorded through journal.B:Ledger is a part of subsidiary book.C:Purchase book records all the purchases whether cash or credit.D:Bank column of cash book always has debit balance.The answer is a.
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