CMA Foundation · Fundamentals of Financial and Cost Accounting · Journal and Ledger
Which transaction would be recorded in the Journal Proper rather than in any other subsidiary book or the cash book?
An opening entry at the start of a new year is recorded in the Journal Proper because it does not belong to any special subsidiary book. Credit sales, sales returns and cash deposits have their own books: the Sales Book, Sales Returns Book and cash book respectively.
- ACredit sale of goods to Ravi
- BGoods returned by a customer, Seema
- COpening entry at the start of a new yearCorrect
- DCash deposited into the bank
Explanation
Opening entries, closing entries, adjustments and rectifications do not fit any special book and go in the Journal Proper. Credit sales go to the Sales Book, customer returns to the Sales Returns Book, and bank deposits to the cash book.
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