MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Income Method

A cash purcha...

Question

A cash purchase of goods for proprietor's personal use should be credited to __________________.

A

Purchases Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Sales Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Drawings Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Cash Account

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Cash Account
A cash purchase of goods for proprietor's personal use should be credited to Cash Account.
The entry will be
Drawings a/c Dr.
To Cash a/c

Suggest Corrections

thumbs-up

0

Similar questions

Q. Select the most appropriate alternative from the alternatives given below and rewrite the statement.

Cash purchases of goods should be credited to ______.
a) Purchase A/c
b) Sales A/c
c) Cash A/c
d) Goods A/c

Q. Select the most appropriate alternative from the alternatives given below and rewrite the statement.

Goods or Amount taken by proprietor for his personal use should be debited to ______.
a) Sales A/c
b) Drawing A/c
c) Purchases A/c
d) Cash A/c

Mention the subsidiary books in which the following transactions are recorded with reason thereof.

(i) Purchase of furniture on credit for use in a shop.

(ii) Sale of goods on credit.

(iii) Goods returned by debtors

(iv) Purchase of stock on credit.

(v) Providing for interest on capital to a proprietor.

(vi) Goods returned to creditors.

(vii) Sale of goods for cash.

Q. Pass rectifying entries:-
(i) ₹ 5,000 being the cost of a Radio purchased for the personal use of the proprietor has been debited to Radio account in the ledger.
(ii) Goods taken by the proprietor for ₹ 1,000, has not been entered in the books at all.
(iii) A cheque of ₹ 500 received from X was credited to the account of Y and debited to Cash instead of Bank A/c.
(iv) A cheque of ₹ 1,300 received from Ram Lal was dishonoured and debited to 'General Expenses' A/c.
(v) A sum of ₹ 3,000 drawn by the proprietor for his private travel was debited to 'Travelling Expenses A/c'.
(vi) Credit purchase of ₹ 500 from Ajay were posted to the credit of Vijay A/c.
(vii) An amount of ₹ 1,600 due from Chandan Lal was written off as 'Bad-debt' in previous year, was unexpectedly received this year, and has been credited to the account of Chandan Lal.

Q. Put the following on the proper side of a Cash Account, a Debtor's Account and a Creditor's Account:

		₹
(i)	Sold goods to Sanjay on credit	50,000
(ii)	Sold goods to Mohan for cash	20,000
(iii)	Purchased goods from Ram on credit	25,000
(iv)	Cash received from Sanjay	19,000
(v)	Goods returned by Sanjay	2,000
(vi)	Paid rent	500
(vii)	Cash paid to Ram	15,000

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Income Method

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon