If the goods are sold, the entry should be recorded in the journal.

True

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False

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Solution

The correct option is A True
When goods are sold, the transactions should be recorded in the book of original entry, i.e. Journal. All the business transactions of a business are recorded in the Journal and, thus, it is called as the book of original entry. Hence, the entries for the goods sold should be recorded in the journal.

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Similar questions

Q. If the goods purchases are in transit, then the journal entry to record will be _______________.

Which of the following journal entry will be recorded, if goods are withdrawn by a proprietor for his personal use from business?

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(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.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.

Q. If the goods purchased are in transit , then the journal entry at the end of the period will be ____________________.

Q. If Sandeep sold goods for Cash, it will be recorded in _____________.

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