PRC-1 · Chapter 2 · Question 63 of 100
'Urban Manufacturers' buys a specialized heavy machine on credit for Rs. 2 million. In which book of prime entry should this transaction be recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) General Journal
Explanation
The Purchases Day Book is exclusively for recording trading inventory bought on credit. The purchase of a non-current asset on credit is a non-routine transaction that goes in the General Journal.
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