A credit purchase of stationery for office use is normally recorded in which book of prime entry?
Correct answer: C. Journal proper
- A. Purchases day book
- B. Cash book
- C. Journal proper
- D. Purchases returns book
Explanation
The purchases day book is reserved for credit purchases of goods intended for resale. Stationery is an office expense, so its credit purchase is recorded in the journal proper rather than in the purchases day book.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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