CMA Foundation · Fundamentals of Financial and Cost Accounting · Journal and Ledger
A trader sold goods on credit to Anil for Rs 30,000 on 5 March, and goods costing Rs 8,000 for his own use were taken from stock on 6 March. In which book(s) should these two transactions be recorded?
The credit sale to Anil goes in the Sales Book, while the goods taken by the proprietor are drawings and are recorded in the Journal Proper. Drawings are not a sale, so they do not belong in the Sales Book.
- ABoth in the Sales Book
- BSales Book for the first and Journal Proper for the secondCorrect
- CBoth in the Journal Proper
- DSales Book for the first and Purchases Book for the second
Explanation
Credit sales of goods in which the firm deals go in the Sales Book. Goods taken by the proprietor for personal use are drawings, a non-routine entry made in the Journal Proper (Drawings A/c Dr, To Purchases A/c). Recording both in the Sales Book is wrong because drawings are not sales.
Did you get it right without looking?
One question tells you little. A timed set on Journal and Ledger shows your real accuracy, how long you take and where you lose marks.
More Journal and Ledger questions
- Mehta & Co. purchased office furniture for Rs 40,000 and paid the amount by cheque. Which journal entry correctly records this transaction?
- In which subsidiary book would a firm record the return of goods that it had earlier bought on credit from a supplier?
- A double-column cash book of Sharma & Co. shows an opening cash balance of Rs 10,000. It then records: cash sales Rs 20,000 and cash deposit…
- Rohit Traders starts the year with assets of Rs 8,00,000 and liabilities of Rs 3,00,000. During the year it buys furniture of Rs 50,000 on c…
- Anita started a business with cash Rs 2,00,000 and furniture worth Rs 50,000. Which compound journal entry records this?
- Which transaction would be recorded in the Journal Proper rather than in any other subsidiary book or the cash book?