Sale of computer by a computer dealer on credit is recorded in __________.

cash book

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computer account

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fixed assets account

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sales book

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Solution

The correct option is C sales book
The firm is doing the business of computer. Sale of computer by the entity will be an operating activity and hence computers are goods in business and not treated as fixed assets. Sales book records transactions of credit sales.
Computer when sold on credit, will be recorded in sales day book as it is a business activity of sale of goods on credit.

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