A second hand motor car was purchases on credit from B & Co. for Rs $10, 000$ . It will be recorded in _______________.

Journal Proper (General Journal)

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Cash Book

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Purchase Book

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Sales Book

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Solution

The correct option is B Purchase Book
Purchase book is a special purpose subsidiary book prepared by a business to record all credit purchases.

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Similar questions

Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000.

He put the difference to suspense account. He discovered the following erro Rs

(a)	Cash received from Ravish Rs 8,000 posted to his account as Rs 6,000.
(b)	Returns inwards book overcast by Rs 1,000.
(c)	Total of sales book Rs 10,000 was not posted to Sales account.
(d)	Credit purchases from Nanak Rs 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e)	Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.

Rectify the following errors.

(a) Furniture purchased for Rs. 10,000 wrongly debited to purchase account.

(b) Machinery purchased on credit from Raman for Rs. 20,000 was recorded through purchase book.

(d) Repairs on overhauling of second hand machinery purchased Rs. 2,000 was debited to repair account.

(e) Sales of old machinery at book value of Rs. 3,000 was credited to sales account.

Rectify the following errors assuming that suspension account was opened.

Ascertain the difference in trial balance.

(a)	Furniture purchased for Rs 10,000 wrongly debited to purchase account as Rs 4,000.
(b)	Machinery purchased on credit from Raman for Rs 20,000 recorded through Purchases Book as Rs 6,000.
(c)	Repairs on machinery Rs 1,400 debited to Machinery account as Rs 2,400.
(d)	Repairs on overhauling of second hand machinery purchased Rs 2,000 was debited to Repairs account as Rs 200.
(e)	Sale of old machinery at book value Rs 3,000 was credited to sales account as Rs 5,000.

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors :

(a)	In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs 1,000 instead of Rs 1,200 and total of page 6 was carried forward to page 7 as Rs 5,600 instead of Rs 5,000.
(b)	Wages paid for installation of machinery Rs 500 was posted to wages account as Rs 50.
(c)	Machinery purchased from R & Co. for Rs 10,000 on credit was entered in Purchase Book as Rs 6,000 and posted there from to R & Co. as Rs 1,000.
(d)	Credit sales to Mohan Rs 5,000 were recorded in Purchases Book.
(e)	Goods returned to Ram Rs 1,000 were recorded in Sales Book.
(f)	Credit purchases from S & Co. for Rs 6,000 were recorded in sales book. However, S & Co. was correctly credited.
(g)	Credit purchases from M & Co. Rs 6,000 were recorded in Sales Book as Rs 2,000 and posted there from to the credit of M & Co. as Rs 1,000.
(h)	Credit sales to Raman Rs 4,000 posted to the credit of Raghvan as Rs 1,000.
(i)	Bill receivable for Rs 1,600 from Noor was dishonoured and posted to debit of Allowances account.
(j)	Cash paid to Mani Rs 5,000 against our acceptance was debited to Manu.
(k)	Old furniture sold for Rs 3,000 was posted to Sales account as Rs 1,000.
(l)	Depreciation provided on furniture Rs 800 was not posted.
(m)	Material Rs 10,000 and wages Rs 3,000 were used for construction of building. No adjustment was made in the books.

Rectify the errors and prepare suspense to ascertain the difference in trial balance.

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