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.

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Solution

(i) Journal proper because purchase of fixed assets on credit is recorded in journal proper.

(ii) Sales book because sales book records credit sales of goods.

(iii) Sales return book because goods returned by customers are recorded in a sales return book.

(iv) Purchase book because purchases book records credit purchases of goods.

(v) Journal proper because it is an adjustment entry and adjustment entries are recorded in journal proper.

(vi) Purchases return book because it records goods returned by the firm to its suppliers.

(vii) Cash book because cash book records cash receipts and cash payments.

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Similar questions

Rectify the following errors

(i) Credit sales to Mohan Rs. 7,000 were recorded as Rs. 700.

(ii) Credit purchase from Rohan Rs. 9,000 were recorded as Rs. 900.

(iii) Goods returned to Rakesh Rs. 4,000 were recorded as Rs. 400.

(iv) Goods returned from Mahesh Rs. 1,000 were recorded as Rs. 100.

(v) Furniture purchased on credit from kartik for Rs. 60,000 posted as Rs. 6,000.

(vi) Furniture purchased on credit from Kartik for Rs. 60,000. posted to Jatin's account.

(vii) Furniture purchased on credit from Kartik for Rs. 60,000 posted to machinery account.

Rectify the following errors.

(i) Credit sales to Mohan Rs. 7,000 were recorded as Rs. 7,200.

(ii) Credit purchase from Rohan Rs. 9,000 were recorded as Rs. 9,900.

(iii) Goods returned to Rakesh Rs. 4,000 were recorded as Rs. 4,040.

(iv) Goods returned from Mahesh Rs. 1,000 were recorded as Rs. 1,600.

(v) Cash sale of Rs. 3,400 to Aroha was posted to the credit of Aroha.

(vi) Credit sale of old furniture to X for Rs. 3,400 was credited to the sales account.

(vii) Credit sale of old furniture to Vishal for Rs. 1,700 was posted as Rs. 7,100.

Q. Name the books of original entry where the following transactions will be recorded with reasons thereof:

(a)	Goods Purchased from Ram Lal ₹ 5,000 on credit.
(b)	Provision for doubtful debts created @ 5% on debtors with book value of ₹ 10,000.
(c)	Defective goods sold to Babita on credit worth ₹ 4,000 were returned by her.
(d)	Purchased furniture on credit from Mr. Ratan Singh for ₹ 15,000 for use in the business.

Q. Open a 'T' shape account of creditor, 'Rakesh', and write the following transactions on the proper side:

		₹
(i)	Goods purchased from Rakesh on credit	50,000
(ii)	Goods returned to Rakesh for	5,000
(iii)	Paid to Rakesh	20,000
(iv)	Purchase goods from Rakesh on credit	10,000

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Purchase of Inventory for cash.
(ii) Purchase of goods on credit.
(iii) Sale of Goods costing Rs. 10,000 for Rs. 12,000 for cash.
(iv) Sale fo Goods on Credit.
(v) Purchase of a fixed asset by issue of shares.

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