Question

State whether the given statement is True or False
1.) Discount received is a personal account
2.) All cash and Bank transactions are recorded only in the purchase book​

Answer 1

Answer: 1. False

2. False

Explanation:

1. Discount received is an income , hence it is a nominal account.

2. This statement is False.

Credit purchases of goods are recorded in a purchase book while cash purchases are entered in the cash book and credit purchases of assets are entered in journal proper.