Question

relevant subsidary books- a) furniture purchased from amudha. b) 5 bags of rice purchased from ganesan.

Answer 1

a) furniture purchased from amudha.

This depends on the nature of business.

If it is a business of trading of furniture -

Furniture purchased from Amudha on credit will be recorded in Purchases book.

If it is purchased for cash, it will be recoreded in Cash book.

If it is a book of trading in any other business-

Furniture purchased will be treated as an asset , and hence will be recorded in Journal proper.

b) 5 bags of rice purchased from ganesan.

This is goods purchased.

Hence, it will be recorded in Purchases book if it is purchased on credit.

In cash book, if purchased for cash.