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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?
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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.
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In which book of original entry, will you record the following transac...
Because it is a cash transaction
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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?
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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?.
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