Rs $3, 50, 000$ cash paid to creditors for settlements of credit purchases will be recorded in _______________.

Sales Book

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Purchase Book

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Journal Proper (General Journal)

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Cash Book

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Solution

The correct option is C Cash Book
As amount is paid to creditor therefore, it will affect cash balance therefore, it will be recorded in the cash book.

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Similar questions

2, 00, 000

Record necessary journal entries in the following cases

(a) Creditors worth Rs. 85,000 accepted Rs. 40,000 as cash and investment worth Rs. 43,000, in full settlement of their claim.

(b) Creditors were Rs. 16,000. They accepted Machinery valued at Rs. 18,000 in settlement of their claim.

Explain how the following may be ascertained from incomplete records

(a) Opening capital and closing capital

(b) Credit sales and credit purchases

(d) Closing balance of cash

Explain how the following may be ascertained from incomplete records:

(a) Opening capital and closing capital

(b) Credit sales and credit purchases

(d) Closing balance of cash.

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