The appropriate book to record credit purchase of machinery is ______________.

Purchases book

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Journal Proper

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Cash book

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Petty cash book

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Solution

The correct option is A Journal Proper
All credit purchases of goods are recorded in the purchases journal whereas cash purchases are recorded in the cash book. Other purchases such as purchases of office equipment, furniture, building, and machinery are recorded in the journal proper if purchased on credit or in the cash book if purchased for cash.

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Similar questions

Q. Select the most appropriate alternatives from those given below :

Credit purchase of machinery is recorded in the ________
a) purchase book
b) cash book
c) journal proper
d) returns outward book

Q. A subsidiary book which is used to record all those business transactions which do not find any place in the purchase book, sales book, return books, cash book, bills receivable and payable book, etc. is called journal proper..

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

Q. A transaction recorded on the credit side of cash book is transferred to the ledger _______________.

Q. If the debit and credit aspects of a transaction are recorded in the cash book it is a:

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