PRC-1 · Chapter 2 · Question 35 of 100
'Rapid Logistics' purchased a new delivery van on credit for Rs. 3 million from 'City Motors'. Where should 'Rapid Logistics' initially record this transaction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) General Journal
Explanation
The purchases day book is exclusively for recording the purchase of trading inventory on credit. The purchase of a non-current asset (like a delivery van) on credit is recorded in the General Journal.
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