Question 3 of 45beginner🧠 RememberMCQ1 mark
Goods purchased on cash are recorded in the:
Exercise: Test Your Understanding - I | Q: 1(c)
For More Understanding
Explanation
Option (C) is correct. The Cash Book is the subsidiary book used to record all transactions involving cash and bank payments and receipts. Since the goods are purchased on cash, it results in a cash outflow, which is recorded in the Cash Book. The Purchases (journal) book is used for recording credit purchases of goods traded in.