Goods brought in by the proprietor as his capital contribution are recorded in _______.

Purchases Book.

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Cash Book.

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Journal Proper.

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None of the above.

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Solution

The correct option is C Journal Proper.
The entry for the above transaction is
Stock a/c Dr.
To Capital a/c
As this transaction cannot be recorded in any other book, therefore, it will be recorded in journal proper.

Suggest Corrections

Similar questions

Rectify the following errors-

1) Goods returned to Mr Pathak as they were defective Rs 280 were not recorded in the books.
2) Commission received Rs 625 was recorded in the Journal proper but not posted at all.
3) Purchased Machinery from Hindustan Machinery Ltd. Rs 9,900 on credit was omitted from the books of accounts.
4) Additional capital Rs 20,000 introduced by proprietor in to the business was recorded in the cash book but was not posted to the capital account in the ledger.
5) Cash received from the Patel Rs 3,300 though recorded in cash book was not posted to his personal account in the ledger.
6) Goods sold to Kishor Rs 6,565 on credit was not posted to his personal account.

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

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.

Give journal entries to rectify the following errors assuming that suspense account had been opened.

(a)	Goods distributed as free sample Rs 5,000 were not recorded in the books.
(b)	Goods withdrawn for personal use by the proprietor Rs 2,000 were not recorded in the books.
(c)	Bill receivable received from a debtor Rs 6,000 was not posted to his account.
(d)	Total of Returns inwards book Rs 1,200 was posted to Returns outwards account.
(e)	Discount allowed to Reema Rs 700 on receiving cash from her was recorded in the books as Rs 70.

Give journal entries to rectify the following errors assuming that suspense account had been opened.
(i) Goods distributed as free sample Rs. 5,000 were not recorded in the books.
(ii) Goods withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.
(iii) Bills receivable received from a debtor Rs. 6,000 was not posted to his account.
(iv) Total of return inwards book Rs. 1,200 was posted to return outwards account.
(v) Discount allowed to Reema Rs. 700 on receiving cash from her was recorded in the books as Rs. 70.

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Goods brought in by the proprietor as his capital contribution are recorded in _______.

The correct option is C Journal Proper.The entry for the above transaction isStock a/c Dr. To Capital a/cAs this transaction cannot be recorded in any other book, therefore, it will be recorded in journal proper.

The correct option is C Journal Proper.
The entry for the above transaction is
Stock a/c Dr.
To Capital a/c
As this transaction cannot be recorded in any other book, therefore, it will be recorded in journal proper.