Match List – I with List – II.

Choose the correct answer from the options given below :

A-II, B-III, C-IV, D-I

The correct answer is option 2- A-II, B-III, C-IV, D-I.

* Credit purchases- Purchase book. All credit purchases of goods are recorded in the purchases journal whereas cash purchases are recorded in the cash book. Other purchases such as purchases of office equipment, furniture, building, are recoded in the journal proper if purchased on credit or in the cash book if purchased for cash. The source documents for recording entries in the book are invoices or bills received by the firm from the supplies of the goods

* Cash purchases- Cash book. Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger (cash) account. It is also called the book of original entry. When a cashbook is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger.

* Credit sales- Sales book. All credit sales of merchandise are recorded in the sales journal. Cash sales are recorded in the cash book. The format of the sales journal is similar to that of the purchases journal. The source document for recording entries in the sales journal are sales invoice or bill issued by the firm to the customers. The date of sale, invoice number, name of the customer and amount of the invoice are recorded in the sales journal. 

* Goods distributed as samples- Journal proper. A book maintained to record transactions, which do not find place in special journals, is known as Journal Proper. Goods distributed as free samples does not find place in other special journal, so recorded in journal proper.