Question

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.

Answer 1

Transactions	Books of Original Entry	Reason
Goods purchased from Ram Lal @ Rs 5,000 on credit	Purchases Book	Purchases book records only credit purchase of goods
Provision for doubtful debts created @ 5% on debtors with book value of Rs 10,000	Journal Proper	Provision for doubtful debts is recorded in journal proper
Defective goods sold to Babita on credit worth Rs 4,000 were returned by her	Sales Return Book	Goods returned by customer which were earlier sold on credit are recorded in Sales Return Book
Purchased furniture on credit from Mr. Ratan Singh for Rs 15,000 for use in the business	Journal Proper	Purchases book records only credit purchase of goods, so Furniture purchased on credit will be recorded in Journal Proper