Multiple choice

Journal paper is used to record

  1. all cash purchases of assets other than goods

  2. all cash sales of assets other than goods

  3. returns of fixed assets purchased on credit

  4. recovery of an amount already written off as bad debt
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Journal proper (journal paper) is used for transactions that cannot be recorded in subsidiary books. Returns of fixed assets purchased on credit requires a journal entry: Asset Account debited (for returns) and Supplier Account credited, which goes through the journal proper.

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