Which transaction is normally recorded in the journal proper rather than a day book?
Correct answer: C. A transfer from one ledger account to another
- A. A credit sale of trading goods
- B. A credit purchase of trading goods
- C. A transfer from one ledger account to another
- D. A return of goods to a supplier
Explanation
A transfer between ledger accounts does not represent a routine sale, purchase or return of goods, so it is recorded in the journal proper. The other transactions are entered in their respective specialized day books.
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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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