Question

Records credit sale of traded goods
A)purchase day book
B)sales day book
C)cash book
D)none of the above

Answer 1

Answer:

Correct option is C)

A purchase day book is an accounting ledger in which transactions related to credit purchases of trading goods are recorded. Cash purchases do not find place in purchase day book as they are recorded in cash book. Also credit or cash purchases of the assets are not recorded in the purchase book as they are the assets and not goods traded by the firm. Such purchase book is also known as purchase journal.