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

Purchases of fixed assets on credit basis is recorded in_______

(a)

Purchases book

(b)

Sales book

(c)

Purchases returns book

(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

Which of the following statements is not true?

(a)

Cash discount is recorded in the books of accounts

(b)

Assets purchased on credit are recorded in journal proper

(c)

Trade discount is recorded in the books of accounts

(d)

3 grace days are added while determining the due date of the bill

Closing entries are recorded in _____

(a)

Cash book

(b)

Ledger

(c)

Journal proper

(d)

Purchases book

Define bill of exchange.

What is an opening entry ?

What is an invoice?

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

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

Enter the following transactions in the purchases and sales books of Kannan, an automobile dealer, for the month of December 2017.

2017 Dec.	Particulars	Rs
1	Bought from Sumathi gearboxes on credit	17,800
4	Sold goods to Rani on credit	15,200
6	Purchased goods on credit from Mani	7,000
10	Sold goods on credit to Saranya	12,500
17	Sold goods to Hussain on credit	13,250
21	Purchased goods on credit from Raghunathan	10,000
26	Sold goods to Shyam for cash	3,000