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Purchase of furniture on credit should be recorded in _______
  • a)
    Purchase book 
  • b)
    Sales book 
  • c)
    Cash book 
  • d)
    Journal 
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Purchase of furniture on credit should be recorded in _______a)Purchas...
Recording purchase of furniture on credit in Journal

When a business buys furniture on credit, it means that the payment for the furniture will be made in the future. Therefore, the purchase of furniture on credit should be recorded in the Journal.

The Journal is a book of original entry where all transactions are first recorded in chronological order. It is also known as the Book of Prime Entry.

The following are the steps to record the purchase of furniture on credit in the Journal:

1. Date: Write down the date of the transaction.

2. Particulars: Write down the name of the supplier from whom the furniture has been purchased.

3. Ledger Folio: Write down the page number of the supplier's account in the ledger.

4. Debit: Write down the amount of the purchase in the debit column. This will increase the value of the furniture.

5. Credit: Write down the amount of the purchase in the credit column. This will increase the liability of the business.

6. Narration: Write down a brief description of the transaction.

Once the purchase has been recorded in the Journal, it will be posted to the relevant accounts in the ledger. This will help in maintaining the accuracy of the accounts and also make it easier to prepare the financial statements of the business.
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Community Answer
Purchase of furniture on credit should be recorded in _______a)Purchas...
Purchase of furniture is not for the trading purposes hence furniture cannot be included as goods and recorded in purchase book. Since the purchases are made on credit hence they cannot be entered in the cash book. Therefore, purchase of furniture will be recorded in journal.
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Purchase of furniture on credit should be recorded in _______a)Purchase bookb)Sales bookc)Cash bookd)JournalCorrect answer is option 'D'. Can you explain this answer?
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