Very confusing Question for Accountants???
 

Q. In Sale journal and Purchase journal, what is recorded?
a) Cash Sale b) Cash purchases c) Credit Purchases and Sale d) Cash Sale and Purchases

Which option and why? Please elaborate.:confused::confused::confused:

Option C
 

[QUOTE=Shafaqat Ali;799837]Q. In Sale journal and Purchase journal, what is recorded?
a) Cash Sale b) Cash purchases c) Credit Purchases and Sale d) Cash Sale and Purchases

Which option and why? Please elaborate.:confused::confused::confused:[/QUOTE]

Both sales and purchase journals are used for recording credit items which belong to accounts payable and receivables. Hence, option c is correct.

Please see the following links for detailed notes on sales and purchase journals.
[URL="http://www.college-cram.com/study/accounting/special-journals/sales-journal/"]http://www.college-cram.com/study/accounting/special-journals/sales-journal/[/URL]
[URL="http://www.college-cram.com/study/accounting/special-journals/purchases-journal/"]http://www.college-cram.com/study/accounting/special-journals/purchases-journal/[/URL]

Only credit purchases and credit sales are recorded in Purchase Journal and Sales Journal respectively. No cash transaction is recorded in both the registers. However these cash transactions are recorded in respective General Ledger books of relative accounts (i.e. Purchase Account and/or Sales Account ledgers).