Purchases book is used to record______

(a)

all purchases of goods

(b)

all credit purchases of assets

(c)

all credit purchases of goods

(d)

all purchases of assets

A periodic total of the purchases book is posted to the _______

(a)

debit side of the purchases account

(b)

debit side of the sales account

(c)

credit side of the purchases account

(d)

credit side of the sales account

Sales book is used to record_____

(a)

all sales of goods

(b)

all credit sales of assets

(c)

all credit sales of goods

(d)

all sales of assets and goods

The total of the sales book is posted periodically to the credit of ____  

(a)

Sales account

(b)

Cash account

(c)

Purchases account

(d)

Journal proper

The source document or voucher used for recording entries in sales book is ____

(a)

Debit note

(b)

Credit note

(c)

Invoice

(d)

Cash receipt

The sub-division of work gives the advantage of specialisation leading to _____

(a)

business transactions

(b)

efficiency

(c)

decision making

(d)

none of these

______ is one of the most important books, in which credit purchases of goods are recorded.

(a)

Purchase book

(b)

Sales book

(c)

Purchases returns book

(d)

None of these

Purchases book does not keep record of purchases of _____

(a)

assets

(b)

liabilities

(c)

goods

(d)

none of these

______ is the statement prepared by the seller of goods.

(a)

Voucher

(b)

Receipt

(c)

Invoice

(d)

Ledger Folio

Entries in the purchases day book are made from invoices which are popularly known as _____

(a)

Invoice

(b)

Bills

(c)

Journals

(d)

Ledger

What is debit note? 

What is credit note?

What is journal proper ?

What is an invoice?

What could be the reason for Joseph's feeling that dealing in cash is risk free?

What type of discount is offered by Joseph?

Give the format of purchases book.

What are the advantages of subsidiary books?

Write short notes on :
(a) Endorsement of a bill and
(b) Discounting of a bill

What are the difference between Cash Discount and Trade Discount?

What are the features of a bill of exchange?

Write a note on
(i) Bills Receivable Book
(ii) Bills Payable Book.

Enter the following transactions in the Purchases book of Mrs. Subhashree Electric Co., which deals in electric goods

2017 April 5	Purchased from Karthik Electric Co., on credit 10 Electric iron box @ Rs. 2,500 each 5 electric stoves @ Rs. 2,000 each
April 19	Purchased on credit from Khaitan Electric Co.,
	3 electric heaters @ Rs. 6,000 each
April 25	Purchased from Polar Electric Co., on credit
	10 Fans @ Rs. 2,000 each
April 29	Purchased from M & Co. for cash
	10 electric stoves @ Rs. 3,000 each

Enter the following credit transactions in the purchases book of Manoharan, a Provisions Merchant.

2017 May 2	Bought from Vasu 100 bags of rice @ Rs. 800 per bag
May 8	Bought from Cheyyar Sugar Mills Ltd., 20 bags of sugar @ Rs. 2,600 Per bag
May 10	Bought from Ram Flour Mill, Coimbatore, 10 bags of wheat flour @ Rs. 750 per bag
May 15	Bought from Nilgiri Tea Co., Nilgiris, 15 cases of tea @ Rs. 900 per case
May 25	Bought from Sairam Coffee Works Ltd., 100 kgs of Coffee @ Rs. 190 per kg
May 29	Bought from X & Co. furniture worth Rs. 2,000