CA Foundation · Accounting · Accounting Process
Which of the following transactions would be recorded through a journal proper entry rather than in a special purpose book?
Writing off a bad debt is recorded in the journal proper because it is an adjusting entry with no dedicated subsidiary book. Credit purchases, credit sales and cash sales are routine transactions recorded in the Purchases Book, Sales Book and Cash Book respectively.
- ACredit purchase of goods from a supplier
- BCash sale of goods to a customer
- CCredit sale of goods to a customer
- DWriting off a bad debt as irrecoverableCorrect
Explanation
Credit purchases go to the Purchases Book, credit sales to the Sales Book, and cash sales to the Cash Book. Writing off a bad debt is a non-routine adjustment with no special book, so it is passed through the journal proper.
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