CA Foundation Exam > CA Foundation Questions > In which book of original entry, will you rec...
Start Learning for Free
In which book of original entry, will you record the following transactions?
Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.
- a)Sales Book
- b)Cash Book
- c)Journal Proper (General Journal)
- d)Purchase Book
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
In which book of original entry, will you record the following transac...
The correct answer is option 'B' which is the Cash Book. The reason for this is as follows:
Recording of Cash Transactions:
Cash transactions are recorded in the Cash Book which is a book of original entry. It is a subsidiary book that records all cash receipts and cash payments. It is maintained on a daily basis and is used to keep track of the cash balance.
Allowance for Early Payment:
An allowance for early payment is a discount offered to a customer for paying early. In this case, an allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050. This means that the customer paid Rs. 1,000 instead of the full amount of Rs. 1,050.
Recording of Allowance for Early Payment:
The entry for the allowance for early payment will be recorded in the Cash Book. The entry will be as follows:
Date | Particulars | L.F. | Amount
-----|------------|-----|-------
DD/MM/YY | Cash A/c Dr. | | 1,000
| Discount Allowed A/c Dr. | | 50
| Sales A/c Cr. | | 1,050
In this entry, the cash account is debited with Rs. 1,000, the discount allowed account is debited with Rs. 50, and the sales account is credited with Rs. 1,050.
Conclusion:
Hence, the correct book of original entry to record the transaction of allowance for early payment is the Cash Book.
Recording of Cash Transactions:
Cash transactions are recorded in the Cash Book which is a book of original entry. It is a subsidiary book that records all cash receipts and cash payments. It is maintained on a daily basis and is used to keep track of the cash balance.
Allowance for Early Payment:
An allowance for early payment is a discount offered to a customer for paying early. In this case, an allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050. This means that the customer paid Rs. 1,000 instead of the full amount of Rs. 1,050.
Recording of Allowance for Early Payment:
The entry for the allowance for early payment will be recorded in the Cash Book. The entry will be as follows:
Date | Particulars | L.F. | Amount
-----|------------|-----|-------
DD/MM/YY | Cash A/c Dr. | | 1,000
| Discount Allowed A/c Dr. | | 50
| Sales A/c Cr. | | 1,050
In this entry, the cash account is debited with Rs. 1,000, the discount allowed account is debited with Rs. 50, and the sales account is credited with Rs. 1,050.
Conclusion:
Hence, the correct book of original entry to record the transaction of allowance for early payment is the Cash Book.
Free Test
FREE
| Start Free Test |
Community Answer
In which book of original entry, will you record the following transac...
Because it is a cash transaction
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer?
Question Description
In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect 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 In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect 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 In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer?.
In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect 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 In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect 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 In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer?.
Solutions for In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect 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 In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In which book of original entry, will you record the following transactions?Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.a)Sales Bookb)Cash Bookc)Journal Proper (General Journal)d)Purchase BookCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup