CA Foundation · Accounting · Accounting Process
Which of the following transactions would be recorded in the Journal Proper rather than in any of the special purpose subsidiary books?
Writing off a bad debt is recorded in the Journal Proper. Credit sales, credit purchases and bank deposits have their own subsidiary books (Sales Book, Purchase Book, Cash Book), whereas a bad debt write-off is an adjusting entry with no special book.
- AGoods sold on credit to a customer
- BGoods purchased on credit from a supplier
- CWriting off a bad debt of a customer as irrecoverableCorrect
- DCash deposited into the bank
Explanation
Credit sales go to the Sales Book, credit purchases to the Purchase Book, and cash deposits to the Cash Book. A bad debt write-off is an adjustment entry with no special book, so it is recorded in the Journal Proper.
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