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Preparing CFS-Direct Method

In which of t...

Question

In which of the book cash purchase is recorded?

A

Cash book

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B

Purchase book

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C

Both (a) and (b)

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D

None of these

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Solution

The correct option is A Cash book
As it is cash purchase so, it will impact cash therefore, it will be recorded in the cash book.

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Similar questions

From the following Subsidiary Book Prepare necessary ledger accounts and balance them.

Purchases Book
Date	Particulars	Inward Invoice No.	L.F.	Amount Rs
2011 Aug. 2	Laxman			4,250
5	Joseph			1,500
10	Salman			3,000
15	Kamini			2,500
31	Patel			800
	Total			12,050

Purchase Return Book
Date	Particulars	Debit Note No.	L.F.	Amount Rs
2011 Aug.7	Laxman			550
18	Kamini			700
31	Patel			100
	Total			1,350

Q. Which of the following statements is/are true?
(i) Cash book records all cash receipts and cash payments.
(ii) Cash book records all sale and purchase transactions of goods both in cash and on credit.
(iii) Cash book records discount on cash payments
Select the correct answer from the options given below :-

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Q. A subsidiary book which is used to record all those business transactions which do not find any place in the purchase book, sales book, return books, cash book, bills receivable and payable book, etc. is called journal proper..

Q. Which of the following books is used to record purchase of the machinery by cash ?

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