Question

Select the most appropriate alternatives from those given below :

Additional cash introduced in business is recorded in ________.
a) purchase book
b) cash book
c) journal proper
d) returns inwards book

Answer 1

Additional cash introduced in business is recorded in Cash Book.

Explanation:
Introducing cash in a business is related to the cash transactions of the business that are to be recorded in the Cash Book. It is the book that is used for recording all transactions relating to cash receipts and payments. The additional cash introduced in the business is a receipt for the business. Hence, it will be recorded in the Cash Book on the receipts side or debit side.