Question

Purchase of asset or stationery on credit is recorded in purchase book.

• A. True
• B. False

Answer 1

The correct option is B False

Purchase book records only the credit purchases of goods. Goods are things that are purchased or produced for resale in which a business deals. Purchase of assets or stationery is not meant for resale and will be held for long term and increase the profit-earning capacity of the business over various accounting periods. Hence, transactions related to purchase of assets or stationery cannot be recorded in the Purchase book. It will be recorded in the journal proper.