Which of the following books should be used to record purchase of merchandise on account?
A
Cash book.
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B
Purchase book.
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C
Sales book.
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D
Journal.
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Solution
The correct option is B Purchase book. There are specific journals which are called as subsidiary books used to record the transactions of specific nature. Purchases of goods on credit are to be recorded in purchase day book whereas purchases by cash are to be recorded in the cash book.