Question

Which of the following statements is/are true?
(i) Cash book records all cash receipts and cash payments.
(ii) Cash book records all sale and purchase transactions of goods both in cash and on credit.
(iii) Cash book records discount on cash payments
Select the correct answer from the options given below :-

• A. Only (i) of the above
• B. Only (ii) of the above
• C. Only (iii) of the above
• D. Both (i) and (iii) of the above

Answer 1

Answer: (D)

Both (i) and (iii) of the above

Statement 2 is not correct as cash doesnot record credit transactions.