Purchase of second- hand computer on credit by a cloth merchant will be recorded in:
  • a)
    Journal 
  • b)
    Cash Book 
  • c)
    Purchase Book 
  • d)
    None of the above 
Correct answer is option 'A'. Can you explain this answer?

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Answers

Nalini Iyer
Jun 04, 2018
When a transaction cannot be recorded in any of the subsidiary books, it will be recorded in journal. In the given case, purchase of second hand computer on credit cannot be recorded in cash book as it is on credit. It can also not be recorded in Purchase book as purchase book shows purchase of goods in trade and not of purchase of any other asset. Therefore, purchase of second hand computer will be recorded in Journal. Such journal is called Journal Proper. 

When a transaction cannot be recorded in any of the subsidiary books, it will be recorded in journal. In the given case, purchase of second hand computer on credit cannot be recorded in cash book as it is on credit. It can also not be recorded in Purchase book as purchase book shows purchase of goods in trade and not of purchase of any other asset. Therefore, purchase of second hand computer will be recorded in Journal. Such journal is called Journal Proper.
When a transaction cannot be recorded in any of the subsidiary books, it will be recorded in journal. In the given case, purchase of second hand computer on credit cannot be recorded in cash book as it is on credit. It can also not be recorded in Purchase book as purchase book shows purchase of goods in trade and not of purchase of any other asset. Therefore, purchase of second hand computer will be recorded in Journal. Such journal is called Journal Proper.