CA Foundation Exam  >  CA Foundation Questions  >  Purchase goods from E worth Rs. 5,000 on cred... Start Learning for Free
Purchase 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?
Verified Answer
Purchase goods from E worth Rs. 5,000 on credit basis.a)Bills Receivab...
Purchase book also known as purchase journal is an accounting ledger in which all credit purchases of trading goods are recorded.
View all questions of this test
Most Upvoted Answer
Purchase goods from E worth Rs. 5,000 on credit basis.a)Bills Receivab...
Explanation:

When goods are purchased on a credit basis, it means that the payment for those goods is not made immediately but will be made at a later date as per the mutually agreed terms. In this scenario, the correct book to record the purchase transaction would be the Purchases Book.

Purchases Book:
The Purchases Book is a subsidiary book that records all the credit purchases of goods. It is used to record purchases of goods for resale or for use in the business. The entry for the purchase of goods worth Rs. 5,000 on credit would be recorded in the Purchases Book.

Journal Proper (General Journal):
The Journal Proper, also known as the General Journal, is used to record transactions that cannot be recorded in any other specialized book. It is used for non-routine or special transactions. However, the purchase of goods on a credit basis is a routine transaction and can be recorded in the Purchases Book.

Bills Receivable Book:
The Bills Receivable Book is used to record the bills or promissory notes received by the business from its debtors. It is not appropriate to record the purchase of goods on credit in the Bills Receivable Book because bills receivable are the instruments of payment received by the business, not the goods purchased.

Purchases Return:
The Purchases Return book is used to record the return of goods purchased on credit. It is the reverse entry of the Purchases Book. In this scenario, there is no purchase return mentioned, so it is not relevant to record the purchase of goods on credit in the Purchases Return book.

Therefore, the correct option to record the purchase of goods from E worth Rs. 5,000 on a credit basis is the Purchases Book.
Free Test
Community Answer
Purchase goods from E worth Rs. 5,000 on credit basis.a)Bills Receivab...
b
Explore Courses for CA Foundation exam
Purchase 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?
Question Description
Purchase 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 Purchase 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 Purchase 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?.
Solutions for Purchase 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 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 Purchase 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? defined & explained in the simplest way possible. Besides giving the explanation of Purchase 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?, a detailed solution for Purchase 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? has been provided alongside types of Purchase 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? theory, EduRev gives you an ample number of questions to practice Purchase 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? 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