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CMA Foundation · Fundamentals of Financial and Cost Accounting · Journal and Ledger

Which transaction would be recorded in the journal proper, rather than in a subsidiary book such as the cash book or purchases book?

Writing off Rs 3,000 as bad debts is recorded in the journal proper. It is an adjustment type transaction with no dedicated subsidiary book, whereas cash, credit purchase and credit sale transactions have their own books.

  1. ACash purchases of goods Rs 7,000
  2. BCredit purchases of goods Rs 20,000 from Gupta
  3. CWriting off Rs 3,000 as bad debts from Verma's accountCorrect
  4. DCredit sales of goods Rs 15,000 to Das

Explanation

Bad debts write-off is a non-routine transaction with no special book, so it goes into the journal proper. Cash purchases go in the cash book, credit purchases in the purchases book, and credit sales in the sales book.

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