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Question
Which of the following statements is not true?
Options
Cash discount is recorded in the books of accounts
Assets purchased on credit are recorded in journal proper
Trade discount is recorded in the books of accounts
3 grace days are added while determining the due date of the bill
Solution
Trade discount is recorded in the books of accounts
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RELATED QUESTIONS
Purchases book is used to record __________.
What is a purchase book?
What is an invoice?
Give the format of purchases book.
Enter the following transactions in the Purchases book of M/s. Subhashree Electric Co., which deals in electric goods.
| 2017 | Particulars |
| April 5 | Purchased from Karthik Electric Co., on credit |
| 10 Electric iron box @ ₹ 2,500 each | |
| 5 electric stoves @ ₹ 2,000 each | |
| April 19 | Purchased on credit from Khaitan Electric Co., |
| 3 electric heaters @ ₹ 6,000 each | |
| April 25 | Purchased from Polar Electric Co., on credit |
| 10 Fans @ ₹ 2,000 each | |
| April 29 | Purchased from M & Co. for cash |
| 10 electric stoves @ ₹ 3,000 each |
Prepare necessary subsidiary books in the books of Niranjan and also Sachin account and Mukil account from the following transactions for the month of February, 2017.
| 2017 | Particulars | ₹ |
| Feb. 1 | Purchased goods from Mukil Traders on credit | 12,480 |
| Feb. 4 | Goods sold to Sachin Traders on credit | 15,000 |
| Feb. 6 | Sold goods to Manish Traders on credit | 12,100 |
| Feb. 7 | Sachin Traders returned goods for which cash is not paid | 1,200 |
| Feb. 9 | Returned goods to Mukil Traders for which cash is not received | 1,500 |
| Feb. 10 | Sold goods to Manish & Co., on credit | 13,300 |
| Feb. 14 | Purchased from Mukil Traders on credit | 15,200 |
Write the difference between return inwards and return outwards
What do you understand by ledger folio?
What is difference between trade discount and cash discount?
Write the process of preparing ledger from a journal
