Question

Mention the subsidiary book in which the following transactions are recorded along with the reason thereof :
i) Sold furniture for cash
ii) Sold goods on credit
iii) Purchased goods on credit
iv) Purchased goods from Mohan for cash

Answer 1

Answer:

Journal Proper: Because purchase of fixed assets on credit is recorded in Journal Proper.

(ii) Sales Book: Because Sales Book records only credit sales of goods.

(iii) Sales Return Book: Because goods returned by customer are recorded in Sales Return Book.

(iv) Purchases Book: Because Purchases Book records only Credit Purchases of goods.

(v) Journal Proper: Because Journal Proper records all those transactions which cannot be recorded in any of the other subsidiary books . Interest on proprietor's capital is also one of those items which can only be recorded in Journal Proper.

(vi) Purchases Return Book: Because it records only goods returned by the firm to its suppliers.

(vii) Cash Book: Because it records cash receipts and cash payments.

Answer 2

ANSWER :

(i)

• ✠ Transaction :-

★ Sold furniture for cash

• ✠ Subsidiary Book where it is recorded :-

➨ Cash Book

• ✠ Reason :-

➨ In cash book, the cash transactions are recorded. As sale of furniture in cash is a cash transaction, it will be recorded in the subsidiary book called Cash Book.

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(ii)

• ✠ Transaction :-

★ Sold goods on credit

• ✠ Subsidiary Book where it is recorded :-

➨ Sales Book

• ✠ Reason :-

➨ In sales book, the credit sale of goods which a business deals in are recorded. Therefore, sale of goods on credit will be recorded in the subsidiary book called Sales Book.

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(iii)

• ✠ Transaction :-

★ Purchased goods on credit

• ✠ Subsidiary Book where it is recorded :-

➨ Purchases Book

• ✠ Reason :-

➨ In purchases book, credit purchase of goods which a business deals in are recorded. Therefore, purchase of goods on credit will be recorded in the subsidiary book called Purchases Book.

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(iv)

• ✠ Transaction :-

★ Purchased goods from Mohan for cash

• ✠ Subsidiary Book where it is recorded :-

➨ Cash Book

• ✠ Reason :-

➨ In cash book, the cash transactions are recorded. As purchase of goods from Mohan for cash is a cash transaction, it will be recorded in the subsidiary book called Cash Book.