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.

Recording Purchase of Second-hand Computer on Credit by a Cloth Merchant in Journal

Journal is the book of original entry where all the business transactions are recorded in chronological order. It is the first step in the accounting process and provides a complete record of all transactions. The purchase of a second-hand computer on credit by a cloth merchant is a transaction that needs to be recorded in the journal, and the reasons for this are explained below:

Nature of the Transaction
The purchase of a second-hand computer on credit is a credit transaction, which means that it involves the extension of credit by the seller to the buyer. The cloth merchant has not paid the full amount for the computer at the time of purchase, but has agreed to pay it at a later date. Therefore, this transaction needs to be recorded in the journal.

Source Document
Every transaction must be supported by a source document, such as an invoice or a receipt. In this case, the cloth merchant would have received an invoice from the seller, which is a source document that provides details of the transaction. The journal entry for the purchase of the second-hand computer on credit would be based on this invoice.

Double Entry System
The journal is based on the double-entry system of accounting, which means that every transaction has two aspects – a debit and a credit. In this case, the cloth merchant would debit the computer account and credit the accounts payable account. This would reflect the fact that the cloth merchant has acquired a computer, but has not paid for it yet.

Conclusion
In conclusion, the purchase of a second-hand computer on credit by a cloth merchant would be recorded in the journal. This is because it is a credit transaction that needs to be supported by a source document and recorded according to the double-entry system of accounting.