Cash purchase of new plant is initially recorded in ________.

purchase day book

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cash book

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plant A/c

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any of the above three

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Solution

The correct option is A cash book
Irrespective of the nature of transaction i.e. revenue or assets, all cash transactions must initially recorded in cash book. Hence cash purchase of new plant will be recorded in cash book.

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Q. Cash purchase of trading goods is initially recorded in _______.

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

Q. Purchase of furniture is a cash outflow from activity in a cash flow statement.

Q. In which of the book cash purchase is recorded?

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Cash purchase of new plant is initially recorded in ________.

The correct option is A cash bookIrrespective of the nature of transaction i.e. revenue or assets, all cash transactions must initially recorded in cash book. Hence cash purchase of new plant will be recorded in cash book.

The correct option is A cash book
Irrespective of the nature of transaction i.e. revenue or assets, all cash transactions must initially recorded in cash book. Hence cash purchase of new plant will be recorded in cash book.