Q.3. During the financial year 2020-21, Nitin, a dealer in stationery, earned 26,00,000 out of
which 34,30,000 was received in cash. He purchased stationery for 2,00,000 in cash and for
31,00,000 on credit. He used stationery of R10,000 for personal purposes. He received an
order to supply stationery of 350,000 for which he received 15.000 as advance. Stationery
was to be supplied during April 2021. He paid 218.000 to Kumar & Sons in advance for
stationery to be supplied in May 2021.
According to cash basis, 'Revenue is:
A. R6,00.000
B. 24,30,000
C. 21,70,000
D. 34.45.000
Answers
Answer:
Purchase book is an accounting ledger in which all credit purchase of trading goods are recorded. Two most important requirement for recording entry in purchase book are:
1. Purchase must be on credit
2. Purchase must be of trading goods.
Therefore, in the given question credit purchase of stationery will be recorded in purchase book. as the purchaser deals in stationery.
Answer:
Purchase book is an accounting ledger in which all credit purchase of trading goods are recorded. Two most important requirement for recording entry in purchase book are:
1. Purchase must be on credit
2. Purchase must be of trading goods.
Therefore, in the given question credit purchase of stationery will be recorded in purchase book. as the purchaser deals in stationery.