Record the following transactions in the Journal and answer the questions given at the end of each transaction

Question

1. Purchased Motor vehicle on credit from Suzuki motors for Rs. 50,000.
a) Where will you record if Motor vehicle were purchased for cash?
b) Why do you not record the purchase of motor vehicle on credit in the purchase book?
c) Where will it be recorded if the motor vehicle is purchased by a motor dealer?

2. Furniture was sold on credit to R.M Traders for Rs.10, 000.
a) Where will you record the sale of furniture for cash?
b) Why do you not record the sale of furniture on credit in the sale book?

3. Building rent due to landlord Rs.12, 000.
a) Where will you record the rent paid?

Answer 1

1.Purchased Motor vehicle on credit from Suzuki motors for Rs. 50,000.
Record this in the General Journal
Dr Motor vehicle Rs 50,000
Cr A/cs payable Rs 50,000

a)Where will you record if Motor vehicle were purchased for cash?
In the cash payments book or cash disbursement journal, depending on what you're taught to do
Dr Motor vehicle
Cr Cash

b)Why do you not record the purchase of motor vehicle on credit in the purchase book?
Because presumably you're not in the business of trading in vehicles. Purchase book is used for purchases of merchandise inventory, things that you sell in your business

c)Where will it be recorded if the motor vehicle is purchased by a motor dealer?
Since a motor dealer trades in vehicles, purchases of vehicles would be recorded in the purchase book

2. Furniture was sold on credit to R.M Traders for Rs.10, 000.
Dr A/cs receivable Rs 10,000
Cr Disposal of furniture Rs 10,000

a)Where will you record the sale of furniture for cash?
In the cash receipts book or cash receipt journal
Dr Cash
Cr Disposal of furniture

b)Why do you not record the sale of furniture on credit in the sale book?
Because presumably you're not in the business to sell furniture.

3.Building rent due to landlord Rs.12, 000.
a)Where will you record the rent paid?
In the cash payments book or cash disbursements journal
Dr Rent Rs 12,000
Cr Cash Rs 12,000

Answer 2

This is all dependent on how old you are and what type of savings account it is. If you are under 18 right now, then the answer is "no". Your father is the gaurdian over that account until you are 18. At that time the account would need to be closed and reopened with you as an actual signor of the account. Legally, the bank should not allow you to withdraw money from this account without your father present.

Answer 3

1. a.) i think in the cash book.
b.) purchase book is only for inventory or raw material purchase
and not for assets.
c.) in the purchase book (if credit).

2.)same principle as above

Answer 4

thnx for giving me dis extra question for practice