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Question

Which of the following books is used to record purchase of the machinery by cash ?

A
Cash book
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B
Purchases book
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C
Journal proper
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D
Purchases returns book
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Solution

The correct option is A Cash book
A cash book is a statement which records all the cash receipts and cash payments of the business transactions.
In case of machinery purchased by cash,the two accounts which get affected would be the machinery account and the cash paid as per the following entry:

Machinery Account Dr.
To Cash Account

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