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Question

Purchased goods for Rs.90,000 from Mr. Nikhil on credit will be recorded in ______________.

A
sales book
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B
purchase book
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C
journal proper (general journal)
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D
cash book
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Solution

The correct option is B purchase book
Purchase book also known as purchase journal is an accounting ledger in which all credit purchases of trading goods are recorded.
For example: purchased goods for Rs.10,000 from Ram on credit will be recorded in purchase day book.

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Q.

Rectify the following errors:

(a)

Credit Sales to Mohan Rs 7,000 were recorded in purchases book.

(b)

Credit Purchases from Rohan Rs 900 were recorded in sales book.

(c)

Goods returned to Rakesh Rs 4,000 were recorded in the sales return book.

(d)

Goods returned from Mahesh Rs 1,000 were recorded in purchases return book.

(e)

Goods returned from Nahesh Rs 2,000 were recorded in purchases book.

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